Sheaff Brock Revs Up and Drills Down to Enhance ResearchAdvice to the Advisor
The word rev is an abbreviation for revolution, alluding to the rate of rotation of an engine, dictionary.com explains. The purpose of revving? To enliven, or stimulate….
The words “enliven” and “stimulate” precisely describe Sheaff Brock managing partners Dave Gilreath and Ron Brock’s intent in inviting research analyst Tom Kaiser to become the newest member of the wealth management firm’s research team.
A 2009 graduate of Indiana University’s Kelly School of Business, Tom Kaiser spent five years at Fitch Rating in Chicago, focusing on asset-backed securities. For the past four years he worked at CNO Financial Group’s 40|86 Advisors division in Carmel, Indiana, selecting fixed-income securities for insurance portfolios. Kaiser holds the globally recognized professional designation CFA® (Chartered Financial Analyst).
“Tom Kaiser’s research and analysis skills strengthen our data-driven approach to investing decisions,” Gilreath states, describing some of the research resources the firm has made available to its portfolio managers.
- Revelation Investment Research’s downside risk portfolio will continue to be a valuable resource for Sheaff Brock investment managers.
Discussion points: Rarely is it feasible for individual investors to develop—or purchase—comprehensive, institutional downside risk analysis. Over the past few years, the DRA (Downside Risk Alert) has become one major way for Sheaff Brock to help independent investment advisors offer value to retail clients. Deciding when to sell a stock is more difficult than deciding when to buy. Revelation’s research identifies groups of stocks as having the least risk. Historically, those stocks have tended to outperform the others over the ensuing twelve months.
- A second “keeper” research tool is William O’Neill data’s Panaray.® O’Neill Equity Research uses visual displays focused on highlighting stocks best positioned to generate alpha (manager-generated value).
Discussion points: For each stock, Panaray compares price movements for the previous day, month, 13-week and six-month periods, analyzing beta, dividend yield, dividend growth rate, price-earnings ratio, sales, and projected earnings and sales for the coming year.
- A new addition to the Sheaff Brock research arsenal is MAPsignals research, which tracks Wall Street’s “Big Money” accounts, offering insight into “behind-the-scenes” market-moving forces, while looking at the rotation of capital within stocks.
Discussion points: Powerful market-moving forces are largely hidden from 99% of investors. The Big Money Index is a 25-trading-day moving average that compares the number of stocks being sold compared to those being bought.
There’s no question that, in recent years, the investment assets allocation balancing act has become trickier. As Sheaff Brock revs up its research capabilities, Tom Kaiser’s experience in research-driven selection of both fixed-income and equity holdings should prove a good fit with the firm’s ongoing commitment to data-driven decision-making.