Do you recommend all stocks that score well on your 155-variable model?
No, we do not. The computer model generates IDEAS – it serves as a high-powered filter that took five years to develop (1998-2003). RECOMMENDATIONS are made only after ideas pass heavy fundamental, technical and subjective overlays.
What differentiates Standpoint Research from those who rely exclusively on quantitative strategies?
We do not rely blindly and exclusively on quantitative data, because we know that is a flawed methodology. The pure quantitative models are so widely used, that they have lost their edge and need to be overhauled. We saw this problem coming years ago, and that is why we use a hybrid methodology. When a system or methodology works, it will get abused until it doesn’t work anymore and that is why we combine quantitative with subjective, fundamental and technical overlays.
What makes your firm different from others?
We limit the number of clients with whom we work. We provide great personal service, we have no conflicts of interest and a truly unique approach. We use a proprietary 155-variable model that factors into consideration nearly every significant piece of data available in the marketplace. This data is for the most part available to the public. Our rigorous proprietary process and what we do with this data sets us aside from our competitors.
What stocks do you cover and how are they classified?
We currently cover more than 2,000 stocks including more than 200 ADRs. All stocks must have a $5.00 minimum price; five-year history; average daily shares traded volume of at least 100,000; and market capitalization of at least $200,000,000. We divide stocks into ten sectors: Consumer Discretionary, Consumer Staples, Energy, Financials, Healthcare, Industrials, Materials, Technology, Telecom and Utilities. Our model also generates recommendations on the industry and sector level.
Can I pay through a soft dollar broker?
For institutional clients, yes. We have many brokers we work with including (but not limited to) UBS, Barclays, Credit Suisse, Bloomberg, Instinet and Deutsche Bank. If a client requests that we work with a new broker of their choice, we are willing to do so and can set that up within 24-48 hours.
How do we begin a relationship?
Please fill out our short client request form or contact us by telephone and we will set up a meeting or call to explain everything we offer and how we can work together.
What are your fees?
Our service is a great value. There is no set price because every client is different. Some are just added to our mailing list while others interact with us on a daily basis. Some are small operations while others have dozens of people we must deal with on an individual basis. Price is never an issue for us – it is negotiated over the phone in a couple of minutes. We always come up with a service that meets your needs and budget.
Who are your clients?
We serve individuals, hedge funds, mutual funds, day-traders, pension funds and asset managers. We feel that anyone who is trying to make money in the stock market on the long side or short side should be looking at our service.
How quickly can you turn around a request?
Requests are usually turned around within 24 hours. Some requests, such as customized portfolio diagnostics reports are filled within 48-72 hours.