New York – While much of the focus on the research industry currently centers on concerns about receiving or transmitting material non-public information to investors, there are classes of information that are from public sources, but that have relevance to the investment process. One area that is not yet fully explored is management quality. Management quality is a well known aspect that underpins the long-term earnings of a corporation. A new service is just getting off the ground that combines analyst content with web-based tools to uncover the track records of particular individuals and their contribution to value in the firms they control.
Chiefist is a quantitative ranking system, which features analyst content in the form of commentary regarding the evolving signals in the system, as well as relevant news and commentary. The core feature of the quantitative portion of the service is the Business Value Enhancement Metric (BVEM), which includes not only share price movements but also factors such as Margin Expansion, Earnings per Share, Return on Equity and Book Value per Share to provide a more complete picture of management performance.
Their philosophy is that a good manager is not necessarily one that maintains a steady hand at the wheel, but perhaps one that anticipates and responds to major events that affect the firm’s products and profitability. Events such as natural disasters, economic shocks or new competitive products would constitute areas where a CEO would have to be nibble and well informed to either take advantage of the situation or to minimize the negative impact on the bottom line of the business.
The service allows the user to search by executive or by company and the analysis covers executive performance, board performance, compensation metrics and executive news. Under development is a “deep dive” analysis which is slated to include instantaneous access to SEC filings, insider transactions, upcoming events and annual reports.
The product is a subscription-based service that is affordable even for the active trader retail information market.