Independent Short Selling Ideas
New York – Short sellers have populated the news recently. The latest developments have been around Chinese firms such as Sino-Forest and Focus Media Holding Ltd. Earlier this week Focus Media’s stock fell 60% within an hour of the release of a report by short seller Muddy Waters. One hour is “barely enough time for most investors to digest the short’s dense, 80-page report” said the Wall Street Journal.
Investors are listening to short selling research – with a “herd mentality” some would argue, but that is a different discussion. The point is that in the current market environment, short ideas have great potential and investors are up for that.
However, Integrity believes that truly independent short selling research offers the most value with the lowest risk to investors. Research firms that trade on the stocks they cover, such as Muddy Waters, are highly exposed to conflicts of interest that not only compromise the quality of the research but also expose clients to risks. Truly independent research is free from such conflicts.
Today we are profiling Two Rivers Analytics as an alternative for investors interested in short ideas in the U.S. Two Rivers Analytics is a boutique independent provider of investment ideas with emphasis on short stocks and long stocks at risk.
Based in New York, Two Rivers Analytics was founded in 2010 by Eric Fernandez, an ex-bulge bracket M&A banker and credit analyst with extensive experience in quant modeling. Since its inception, the firm has been providing investors with a unique, comprehensive process for idea generation, and insights on short stock candidates and dangerous longs. Two Rivers covers a universe of U.S. stocks with market caps greater than $750 million across all sectors except financials.
Two Rivers Analytics implements a hybrid process that combines a quantitative discipline with fundamental analysis. This process allows the firm to identify stocks at risk and conduct value-added analyses such as rankings, long and short investment ideas, long/short model portfolios, and custom portfolio reviews for clients. Products available to clients include: Proprietary “Stocks at Risk” model rankings and highlights, company reports and custom work, including portfolio review, custom sorts and one-off opinions.
Timely, comprehensive and user-friendly reports allow clients to fully benefit from Two Rivers’ unique process. For more information, please access their website at TwoRiversAnalytics.com or contact Eric Fernandez, CFA, 845-918-1996, eric@tworiversanalytics.com
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published November 23, 2011
