The Contrarian Research Report, authored by Murray Stahl, employs a value-oriented, event-driven investment strategy that seeks to capitalize on the most inefficient and attractive investment opportunities in the small cap equity arena. Murray uses a time-intensive, investigative style of research to uncover behind the scenes, proprietary information about each company. Investment recommendations focus on companies with significant barriers to entry that have the ability to generate a high and sustainable return on invested capital. While the vast majority of such companies trade at or near fair value, opportunities present themselves when transitory events temporarily depress share prices. These situations are the primary focus of the research process.

The Global Contrarian report builds on the success of the domestically focused Contrarian Research Report by identifying companies primarily in Western Europe and Asia whose financial success in truly independent from the fluctuations in the U.S. economy.  Given the rising correlation between the MSCI-EAFE and S&P 500 indices over the last ten years, it could be argued that portfolio managers seeking to diversify internationally have gradually lost their ability to lower volatility through the purchase of foreign equities. The Global Contrarian avoids companies that rely heavily on U.S. operations or are vulnerable to a slowdown in the U.S. export market.  In order to qualify for recommendation, each company must meet the proven investment criteria of high and sustainable returns on invested capital, enabling them to act as compounding investment vehicles. The service focuses on companies with under-developed or undiscovered natural resources; monopoly, oligopoly or consolidating industry structures; with benefical exposure to the long term impact of emerging economies.

The Global Spin-Off Report, produced by Horizon Research Group, identifies and analyzes all publicly announced spin-offs outside the United States. Coverage of each spin-off begins upon announcement, and continues through at least first quarter of trading as a indepedent company.  A monthly Global Spin-Off Calendar monitors the status of each transaction, and updates any relevant information such as the timing of the spin-off and share distribution ratios. A full summary and opinion on the spin-off is also provided. Updates are continually published to highlight trading ideas in situations where pricing and value anomalies exist.

The Spin-Off Report, authored by Murray Stahl and Ryan Casey, monitors the progress of all U.S. spin-offs from announcement date through when-issued trading, and continues coverage through the first quarter of trading. The service provides fundamental research reports on the subsidiary prior to divestiture, and highlights arbitrage opportunities and trading techniques both before and after the record date. The Spin-Offs of Tomorrow report provides a detailed overview and analysis of companies believed to be potential spin-off candidates with a unique viewpoint and rationale. In addition, clients receive the Bits & Pieces report; a monthly supplement to the service that identifies mispriced stub securities, tracking stocks and other arbitrage opportunities. The Spin-Off Report Compendium provides an effective forum to discuss restructurings outside the realm of spin-offs, as well as intriguing divestitures in foreign markets.

In August 2009, The Distressed Securities Report and The Capital Structure Arbitrage Report, both published by the Horizon Research Group, were combined into a comprehensive fixed-income reported entitled, The Fixed Income-Contrarian. The Fixed Income Contrarian identifies fixed income strategies ranging from high-yield investments to capital structure arbitrage opportunities.  Recommendations in distressed securities include situations where the insolvency implied by the price of a particular security lies in direct contrast with Horizon’s view of financial recovery.  The report will also identify debt securities that present intrinsic recovery value for pre-petition creditors through the conversion of corporate debt to equity.

The service examines and identifies debt securities that exhibit an asymmetrically favorable risk/return profile, due to relative mispricing within a capital structure.  Strategies employed will provide a high return in the positive case, but with limited or well-defined limit of loss in the negative case.  Generally, the abridgement of risk is achieved through an arbitrage or hedge transaction with a second or even third security, typically within the capital structure of the same company.

The Devil’s Advocate Report produces short-sale recommendations on highly visible, large capitalization stocks, as well as unique short-sale and “spread trade” recommendations in ETFs, options and other instruments. As companies progress from high growth businesses to stable, mature companies, valuations often remain high and become illogical. Such circumstances are frequently explored in The Devil’s Advocate Report. Recommendations are often accompanied by option strategies to reduce or eliminate downside risk.

The rapid growth in exchange traded funds has provided investors with the ability to efficiently gain exposure to specific groups of securities that share common characteristics across the equity and fixed-income spectrum. The Devil’s Advocate Report will utilize ETFs to exploit pricing anomalies between various classes of securities.