Voyant Advisors

Founded in 2006, Voyant Advisors consists of seven investment professionals seeking to identify publicly traded companies that exhibit significant risk of stock price underperformance. The analytical process blends working capital and forensic accounting with in-depth fundamental research to provide clients with differentiated idea generation of companies with significant and unrecognized risk. Voyant primarily publishes analysis of U.S. and European-listed companies in the technology, telecom, consumer, industrial and healthcare sectors with market capitalizations of $1 billion and above. Voyant also provides a variety of consulting services. These include detailed research projects on specific companies, portfolio monitoring services, consulting on complex accounting issues, and management meeting preparation.

Two subscription-based research services are published: Voyant Americas and Voyant Europe. Voyant Americas provides rigorous analysis of listed companies in North and South America with an emphasis on U.S. listed companies. Voyant Europe is primarily focused on companies listed in the United Kingdom and Continental Europe.

Each service initiates coverage on 1 to 2 companies per month, with regular, time-sensitive updates published on thesis impacting events such as earnings releases, management presentations, company announcements, regulatory-related activity (i.e. informal SEC inquiries), and competitive landscape developments. The majority of published companies are above $1 billion in market capitalization with sufficient liquidity (generally > $15M average daily volume), and low short interest (generally < 15% of float). While coverage is sector-agnostic, the service provides considerable coverage of companies in the technology, industrial, consumer, and healthcare sectors.

The first stage of the research process involves a measurement of working capital and asset account quality across a wide universe of companies. 30 to 40 sector-specific variables of working capital account quality are measured in four broad areas – receivables quality, inventory quality, cash flow, and asset quality. This initial process produces a subset of companies exhibiting characteristics that are consistent with unsustainable revenue and/or earnings.

The second stage of the research process investigates methods of earnings management and accounting policy changes implemented by management to achieve recent consensus estimates. This process helps to guide the following fundamental analysis towards segments of the business that are most likely responsible for the disparity between current Street estimates and the actual earnings power of the company. Fundamental research includes calls to publicly-traded customers, suppliers, and competitors in order to gather effective data points and additional clarity on the competitive challenges faced by the company.

The third step of the research process includes the analysis of company disclosures and financial statements, financial modeling, and ongoing dialogue with peers, customers, and suppliers.

A thesis may materialize through a variety of catalysts including a negative earnings preannouncement, an earnings and/or revenue miss, a negative guidance revision, a financial restatement, or some other material adverse event (such as an SEC enforcement action). A thesis may be invalidated through a number of means including, but not limited to, an improvement in certain working capital account metrics (e.g. receivables quality, inventory quality, cash flow quality, etc.) or a bona fide takeover. Continuous coverage of each company is provided until a thesis materializes or has proven to be incorrect.

Voyant Americas

sample research

Sep 22, 2015
Endo International plc
Jun 22, 2015
Seagate Technology Public Limited Company
Jun 20, 2014
Hanger, Inc.

Voyant Europe

sample research

Jul 22, 2015
HUGO BOSS AG
Oct 2, 2014
Opera Software ASA
Jan 10, 2014
Adidas AG

Voyant Consulting

Voyant Advisors combines the talents of top quality corporate auditors with a forward looking fundamental research process to deliver comprehensive and customized on-demand research projects to investment managers. Voyant's consulting services are routinely used to compliment investment managers' own investment approach for both idea generation and risk management.

Areas of expertise include:

  • Portfolio Risk Management - Utilizing proprietary quantitative models and a systematic qualitative review to assess the earnings sustainability of portfolio positions.
  • Management Meeting Preparation - Providing expert techniques in addressing management teams in order to uncover weaknesses within the business and insightful Q&A questions focusing on aggressive or unusual reporting and disclosures within filings.
  • Bespoke Research - Full length research reports and analysis employing the same rigorous and independent analytical lens central to Voyant’s research process. Selected companies will undergo in depth analysis to determine the sustainability of financial results and key risks to earnings.
  • Individual Issue Analysis - A review of one or more specific issues identified by a client relating to earnings risk, or other areas of concern.
  • Accounting Related Reviews - Leveraging the firm’s accounting expertise to review specific accounting issues and address questions that relate to specific company disclosures and/or general policies.

 

Voyant Consulting Brochure

sample research

Jun 5, 2015
Voyant Consulting - Pandora A/S