About Us - Outside Critique

A couple of years ago we were asked if we would be willing to cooperate in an academic study of our methodologies. The idea of academic scrutiny intrigued us, so we agreed to share everything we had ever produced with a group lead by Hemang Desai, a Professor at the Cox School of Business at SMU. The resulting paper documented our results and ended up providing additional information about our stock selection process. In doing so, the paper documented annual market adjusted returns of 15%.

"Interestingly, the sample firms experienced sharp reversals in their stock market performance after the issuance of the report. In the month in which the report is issued (month 0), the average market adjusted return is -4.89% (t-statistic of- 2.50). The performance continues to decline in the 12 month period after the issuance of the report and the sample firms underperformed the market, on average, by 15% (t-statistic -2.28)"

Review of paper by CXO Advisory

Paper : The Role of Fundamental Analysis in Information Arbitrage: Evidence from Short Seller Recommendations - Hemang Desai, Srinivasan Krishnamurthy and Kumar Venkataraman