Bright FuturesUp-and-coming fund makes market inefficiencies work for you.

If you took a finance class in business school or college, yourprofessor probably drilled into your head the "efficientmarkets" theory, which says that it's nearly impossiblefor an investor to beat the market in the long run. Well, businessprofessors, take note: There is one mutual fund that's almostcertain to prove those theorists wrong--Smith Breeden EquityPlus.

How does the fund do it? Its strategy is complicated, but in anutshell, it takes advantage of market inefficiencies. The fundbuys futures contracts that mimic the performance of the Standard& Poor (S&P) 500, an index of the 500 largest U.S.companies' stocks. The advantage of buying futures contractsrather than the individual stocks in the index is that futuresdon't require the buyer to pay the full amount owed until threemonths after the purchase date. This means a buyer has three monthsto invest that money elsewhere.