TILDX has a market beta of 0.69. It invests in mid size companies so it doesn’t have a small cap tilt. Even though Whitney Tilson is a value investor, Tilson Dividend Fund doesn’t have a value tilt. The “value effect” beta is -0.0003. You can’t practically get closer to zero than this. The fund doesn’t chase momentum stocks either. Considering Whitney Tilson has a significant value tilt in his other funds and TILDX doesn’t, we attribute the success of TILDX to Zeke Ashton. There are thousands of mutual funds with zero or negative alpha, yet which managed to attract trillions of dollars. TILDX has more than 6 percentage points in alpha, comparable to prominent hedge funds like T2 Partners and Dan Loeb’s Third Point, but it manages only $40 Million. This alone shows Insider Monkey that investors don’t know what they are doing, and marketing and sales is the key factor for the financial success of fund managers. Instead of trying to create value (i.e. generate alpha), mutual funds secretly (or openly) mimick indices and produce revenue through management fees.