Our Company
	James Advantage Funds James Capital Alliance

HISTORY
James Investment Research was founded in 1972, by Dr. Frank James, Ph.D. Dr. James doctoral dissertation was the seminal work challenging the random walk theory and his concept of "relative strength" is now used world wide. Dr. James continues as president and head of research of this eponymous research institution. James manages balanced, all equity, fixed income, and small cap portfolios. The company is known for its successful conservative style and philosophy.

James prides itself on its own research. James’ proprietary model is a quantitative tool which uses over two hundred factors to screen and analyze a data base of over 8000 stocks. The factors are generally value type factors, such as PE ratios, but relative strength and earnings momentum are also important. James management encourages a creative approach to analysis, but a strict adherence to company standards and policies is required.

FOCUSED PHILOSOPHY
The philosophy at James is to be conservative and to look for value. We consider ourselves to be Value investors and we know that preservation of capital in down markets can often be more important than outperforming in the run-away bull markets. Our philosophy is based on the three basic concepts of Value, Neglect and Management Confidence. Value means investing in securities which have low ratios such as price to book and price to earnings. Neglect means finding stocks which are overlooked by Wall Street analysts or underrepresented in institutional portfolios. And Management Confidence means we look for companies where the managers are showing confidence by buying stock in their own company.

STOCK SELECTION PROCESS
James uses a top-down approach. We look at the general stage of the economy and forecast where the economy is moving over the next six to twelve months. Historical quantitative analysis helps to identify which sectors of the stock market should outperform. This is followed by industry analysis, and finally the individual stocks themselves are examined. James has developed a powerful computer model which incorporates over two hundred factors to screen our data base which contains over 8000 stocks. Sector analysts use the model to reduce the universe of eligible stocks to only a handful. In-depth company analysis then further reduces the list of buy candidates to only a few. The sector analyst then presents these candidates to the Investment Committee where the often spirited debate finally gives way to a vote. Only those stocks approved by the Investment Committee are added to the Buy List.