Voyant Advisors is pleased to announce the launch of “Small Cap Alerts." Voyant will seek to identify liquid companies between $500 million and $2 billion in market capitalization that exhibit evidence of fundamental business deterioration, competitive landscape challenges, and/or operational inefficiencies that are not recognized by the market.
Academic studies have consistently documented that returns in financial statement analysis-based strategies are strongest for lower market capitalization companies. As Voyant's proprietary models and fundamental research techniques are rooted in empirical research, it follows that the small and mid-cap universe offers excellent alpha potential for research analysis. This is supported by the results generated from Voyant’s research process. Since Voyant’s inception, approximately 70% of companies initiated with than less $2 billion in market capitalization have generated excess return.
Voyant will apply its rigorous, well-proven research methodology to more frequently identify smaller capitalization companies that are at significant risk of underperformance. Depending on Voyant’s level of conviction and thesis developments following initiation, “Small Cap Alerts” may be subject to more thorough analysis in a comprehensive report.
As part of the subscription to the Spin-Off Report, a Radar Screen is released to evaluate companies that remain of interest for a variety of reasons: a similar company may have recently announced a spin-off, the company may be under investor pressure to consider strategic alternatives, or the current segments may not prove a synergistic fit and as a result the stock trades at a discount to its closest peers. Prior to date, the Radar Screen covered and tapped into six of the last ten spin-off announcements, drawing attention to companies offering lucrative opportunities and bringing investors a step closer to capitalizing on the future.