Generating Alpha
"Small Cap Alerts", seeks 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 evidence has consistently documented that returns in financial statement analysis-based strategies are strongest for lower capitalization companies. Given that the proprietary models and fundamental research techniques of Voyant are rooted in empirical research, it follows that the small and mid-cap universe offers excellent alpha potential for our analysis. This is supported by the historical results generated from Voyant's research process. Since Voyant's inception, approximately 70% of companies initiated with less than $2 billion in market capitalization have generated excess return.
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