Buy Signals - Their Source and Triggers
The leading institutional investment firms and the leading hedge funds understand and are universally committed to the following investment hypothesis:
Research has the important dimension of scarcity value—that is, an insight that is not widely disseminated is valued more highly than if it were broadly disseminated.
Said differently, successful investment performance is increasingly dependent upon obtaining valuable investment information before it is obtained by other institutional investors – and certainly before it is obtained by smaller institutional investors and the universe of retail investors.
The roughly forty institutional investment firms and roughly forty hedge funds in our database provide investment management for over $8 trillion of client assets.
Outside of these leading firms, very few investors or investment advisors can match the experience, the knowledge, the widespread information contacts, the information technology competence or the financial wherewithal that is increasingly required to access research insights that have not been widely disseminated.
When institutional and hedge fund managers obtain information that might drive the price of a stock higher, they do what any savvy investor would do - they make a significant purchase of that stock.
In the parlance of Wall Street, they make Big Bets.
Whenever one of our institutional investment firm initiates a new Big Bet of at least $100 million – or increases an existing investment by at least $100 million – an Institutional Investor Signal is generated. An Institutional Investor Signal is also generated whenever one of our hedge fund initiates a new Big Bet of at least $25 million – or increases an existing investment by at least $25 million.
These Signals are emailed to our members on the day the filings are received by the Securities & Exchange Commission.
To supplement our efforts to detect tomorrow’s winning stocks – today – we also track daily Unusual Volume for both the NYSE and Nasdaq. Whenever a stock experiences a significant increase in daily trading volume accompanied by higher closing prices for at least three of the most recent five trading days, an Unusual Volume Signal is generated.
Once again, those Signals are emailed to our subscribers on the day they are generated.
