New York – Hedge Fund Solutions, an advisory firm to corporations fending off activist investors, recently launched a research product identifying companies which are attractive targets for activist investors. It is an interesting way to generate business. Nevertheless, the research product and a related blog look promising.
Hedge Fund Solutions LLC was formed in 2003 by a corporate insider at Del Global Technologies who lost his job as a result of a proxy battle with activist fund Steel Partners. The initial business model was to advise corporations on tactics to ward off activists. The firm is diversifying into services targeted to investors.
The new service, Catalyst Investment Research, provides reports on companies which are being targeted by activist investors. The firm searches through SEC filings to find investments being made by activist investors and provides reports on companies it believes have significant opportunity for appreciation. The reports typically include an analysis of the strategy behind the activist investment.
Hedge Fund Solutions also provides a free weekly blog tracking activist activity. We believe both research products have merit, and will be of interest to investors tracking activists. The concern is that pricing for the service is set so low ($3,000 for the subscription service and $0 for the weekly report) that we wonder if the research will be economically viable at the current pricing level.
Press release below:
Hedge Fund Solutions, LLC Launches Catalyst Investment Research™ on Activist Investments
Research Uncovers Fundamentally Solid Companies With A Value Investment Catalyst Driven By Activist Investors
Philadelphia, PA (PRWEB) September 10, 2009 — Hedge Fund Solutions LLC (Hedge Fund Solutions) a leading investment research and strategy consulting firm focused exclusively on issues involving shareholder activism, has launched Catalyst Investment Research(TM). This new investment research product is designed to identify undervalued publicly traded companies that have the potential to generate outsized returns due to an activist investor’s involvement.
Hedge Fund Solutions LLC
Recent studies conducted by April Klein and Emanuel Zur of NYU’s Stern School of Business have shown that stock prices of companies targeted by activist investors earn 10.2% average returns during the period surrounding an activist’s ownership disclosure and an additional 11.4% abnormal return during the following year.
“Our research team analyzes every activist investment disclosure filed with the SEC and finds the best investment opportunities with a near-term catalyst for value improvement.” said Damien Park, Managing Partner of Hedge Fund Solutions, LLC.
Catalyst Investment Research(TM) singles out companies with extraordinary value potential where activist investors have taken sizeable investment positions and are pressing management to unlock hidden pockets of value. Each research report examines the activist’s investment thesis, their track record of success in previous interventions and the likelihood that the activist will be instrumental in boosting value in a short period of time.
Jonathan Heller, CFA, a Partner at Hedge Fund Solutions and contributor to Catalyst Investment Research(TM), further commented that in conjunction with analyzing the activist’s interests, “We examine the fundamental value inherent in the target’s business and determine if the Company is truly trading at a discount to its intrinsic value.”
Hedge Fund Solutions’ unique combination of these two views on value creates a powerful investment opportunity and, ultimately, can generate outsized investment returns. “Lending credence to the value of our research is the share price performance of the companies we have recently covered. To date, companies we have examined have gained as much as 250% in value within three weeks of our research being issued,” said Mr. Park
Review the performance of the Companies recently researched. (Catalyst Investment Research(TM) Performance)
Ron Orol, the author of Extreme Value Hedging: How Activist Investors are Taking on the World, praised the new product by saying “The Catalyst Investment Research report not only finds where the hidden gems are buried, but also brings along the excavation equipment to help dig up the value.”
Timothy Brog, an active value manager with Locksmith Capital Management says, “Damien and Jon deliver a very compelling research product. Nobody does a better job of analyzing solid companies with a very real and quantifiable catalyst for value improvement. I’m a subscriber and highly recommend it to others.”
Companies and individuals interested in subscribing to the Catalyst Investment Research(TM) report can begin by requesting a free 1-month trial at Hedge Fund Solutions’ website.
About Hedge Fund Solutions, LLC:
Hedge Fund Solutions is a Philadelphia-based investment research and strategy consulting firm focused on providing substantive solutions on issues relating to shareholder activism. The Firm has an unparalleled depth of knowledge on activist investing and has become the trusted advisers to numerous institutional investors, CEOs and board members worldwide.
In addition to Catalyst Investment Research(TM), Hedge Fund Solutions issues Catalyst Equity Research Report(TM), a free weekly research report which highlights US-based companies where activist investors have taken sizeable investment positions and are pressing for change. The Company also administers The Official Activist Investing Blog™.