DAL's upgrader mutual funds are funds of funds that invest in the best performing funds, then when they start to lag, they sell them and invest in the next best performing funds, ad infinitum. http://www.fundxfund.com/investment.cfm http://finance.yahoo.com/q?d=t&s=HOTFX I guess it's all in the timing. If they can get in the top performers early enough to ride the wave, and get out soon enough to keep the gains, I guess it could work. Or then again, it could be a group of funds based on chasing performance, which could result in disaster.
most of these funds of funds are just paying twice the fees (one for the underying fund, and two for the fund of fund) to underperform the market. Maybe this one is better but if the people running it can position trade funds, you'd think they'd prefer position trading stocks.