Over the last year and a half we have documented our investment process in our quarterly letters. We have published our views on the following topics: market efficiency, structured asset class investing and developing capital market expectations (all of the previous letters are available on request and on our website). This quarter we continue documenting our investment approach with a discussion on our investment selection process. We highlight some of the investment companies (mutual funds) that we are using to construct your globally diversified portfolio. We also discuss the reason that Empirical pays little attention to traditional mutual fund rating agencies and other financial publication fund ranking systems.