Our team of seasoned insider trading analysts thoroughly examine relevant SEC filings for subtle changes in insider trading patterns that indicate a shift in management sentiment regarding share prices, capturing important information that is often missed by even the most sophisticated quantitative applications. If our fundamental team also concludes that fundamental risks are misunderstood or underappreciated, the trading and fundamental analyses together form the basis of a high conviction short or long thesis. We publish between 13 and 16 high conviction Top Ideas annually.
We analyze more than just simple open-market buying and selling by officers, directors, and large holders. Our process combines decades of experience in analyzing the complex implications of insider transactions along with proprietary quantitative tools to identify when insiders transact ahead of meaningful share price changes. Our published Top Ideas have consistently delivered average double-digit alpha returns that are non-correlated with the market since our inception. Our team has expertise in Exchange Act and Section 16 rules and regulations, and prior practical experience constructing and analyzing diversification strategies for corporate insiders, including Rule 10b5-1 plans.
We bundle together access to our published research ideas described above with custom research projects on client request where we analyze historical and current filings for relevant changes in trading behavior and/or executive compensation. Clients find that these Research Requests can be an extremely valuable compliment to their in-house research effort, and for some clients, completing a Research Request is an integral part of their research process.
Clients frequently request trading or compensation analysis for their long as well as short positions, and often for smaller cap companies. The number of Research Requests we conduct each quarter and the priority level given to them is dependent on the clients’ subscription level. Typically, we provide a written summary of our analysis and supporting data within one week. This research is proprietary to the requesting client and not shared with any other client.
Our coverage universe includes all U.S. sectors and industries, including foreign private issuers, and we deliver our published research ideas and completed Research Requests to subscribers on our website (www.3DAdvisors.com). For our published research ideas, the subject companies have market caps of >$1 billion, at least ~$15 million in daily trading volume, and generally low short interest. The Research Requests we complete for clients have no market cap or trading volume minimums.
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