a look at the 90% solution: this explains that 90% of the success of a mutual fund, for instance, has nothing to do with the fund ` s stock selection, research or trading skills but can be explained by the market ` s overall direction at the time. in statistical terms, the fund is the dependent variable and the overall market is the independent variable. therefore, investors who want to outperform the market must create a portfolio of varied asset holdings including hedge funds, individual stocks and other alternative investments.