While the funds' performance isn't impressive, their ability to attract assets certainly has been. Both the Strategy and Strategy Eagle funds have steadily attracted assets, according to data provided by Financial Research Corporation of Boston. Data for the firm's Liberty fund, which launched Dec. 26, 2000, was not available, but the fund held $3.25 million in assets at the end of the second quarter, according to company data.

Kelmoore's niche appeal is what is driving sales, according to Jonas Ferris, president and founder of Max Funds, a firm that tracks small and new funds. But the idea might be a better marketing concept than a practical investment strategy, he said.

There are a handful of funds that offer protection against market fluctuations and very few of them offer good overall performance, he said. But any product that gives brokers something to sell in the existing markets is likely to generate assets, he said.

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