Category: Financial Services

FinTech for Growth & Profitability

FinTech for Growth & Profitability

Investors that value growth AND profitability ought to consider a number of tried-and-true FinTech names. Several days ago we were critical of some of the recent IPO and IPO hopeful crop of companies that enjoyed (even if temporarily) nosebleed valuations while delivering little in the way of recurring revenue much less profitability. Contrast that with … Continue reading FinTech for Growth & Profitability

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The Next Recession Will Prove Different for U.S. Equity Markets

The Next Recession Will Prove Different for U.S. Equity Markets

A recession is defined as an economic period where GDP declines for two consecutive quarters. We believe the next recessionary period will be different as a result of artificially low interest rates. The United States' proclivity to print money and maintain artificially low interest rates makes it difficult for institutional investors to find yield. Gone … Continue reading The Next Recession Will Prove Different for U.S. Equity Markets

Google – Keeping Tabs on the AI Leader

Google – Keeping Tabs on the AI Leader

AI is a scale game. Massive amounts of data and a large number of data scientists are required to build and train machine learning models and neural networks that underpin products such as Google Assistant and many others we've grown accustomed to. Google has never been great at selling to the enterprise. If it ever … Continue reading Google – Keeping Tabs on the AI Leader

It’s “Early Days” for NLP. The Opportunities Are Many

It’s “Early Days” for NLP. The Opportunities Are Many

Last Week I Participated on an AI-focused Panel at the SS&C Deliver Conference The panel - “Practical Applications for AI in Investment Operations & Accounting” - was especially enjoyable because the audience engaged. While much has changed since I last worked in an Investment Operations capacity in 1998, much remains the same - meaning there … Continue reading It’s “Early Days” for NLP. The Opportunities Are Many

If You Build It They Won’t Necessarily Come<span class="badge-status" style="background:red">Premium</span> 

If You Build It They Won’t Necessarily ComePremium 

Incentivize Prospective Participants with A Seat at the Table MoviePass shut down on September 14th. We do not have first-hand knowledge of MoviePass’ ever-evolving business model. However, we do know that MoviePass never quite figured out how to properly incentivize movie theaters to drive audience participation.  When building new network businesses, it makes sense to … Continue reading If You Build It They Won’t Necessarily ComePremium 

Toxic Long Term Care Policies: A Bane for Many. A Boon for Some.

Toxic Long Term Care Policies: A Bane for Many. A Boon for Some.

Some years ago many insurance carriers wrote tranches of long-term care (“LTC”) life insurance policies which have proved to be toxic. These “toxic” LTC policies - primarily written between 1999-2004 - were at the heart of a scathing critique of General Electric (tkr: GE) last week which ultimately accused the company of accounting fraud. While … Continue reading Toxic Long Term Care Policies: A Bane for Many. A Boon for Some.

Don’t Expect M&A Activity to Accelerate Anytime Soon

Don’t Expect M&A Activity to Accelerate Anytime Soon

Based on June quarter earnings call results, management teams have less visibility into Sales pipelines, Revenue forecasts and Profitability in the aggregate than several months ago. This in turn causes would be acquirers to haircut purchase price valuations if not walk away from deals entirely. In the former case, valuation haircuts typically either stall deal … Continue reading Don’t Expect M&A Activity to Accelerate Anytime Soon

LP Fee Verification & Administration as a Service

LP Fee Verification & Administration as a Service

LP’s are increasingly hiring third-party expert firms to verify fees payable to Private Equity managers. When I first read this news I was surprised to learn that many LP’s don’t have an operationalized process around validating management fee schedules and payment processing. Apparently I was naive in thinking that PE managers supplied LPs with a … Continue reading LP Fee Verification & Administration as a Service

CEORater Technology Founder CEO Index Continues to Outperform

CEORater Technology Founder CEO Index Continues to Outperform

Year-to-Date results are in through July 31st 2019 and the CEORater Index outperformed both on an Unweighted and Weighted total return basis. The CEORater Technology Founder CEO Index posted an Unweighted Total Return of 33.1% year-to-date through July 31st 2019 vs. 29.1% for the benchmark (ticker: RYT). Everquote (tkr: EVER) was the top performer on an unweighted basis … Continue reading CEORater Technology Founder CEO Index Continues to Outperform

When Evaluating Institutional Investors Ferraris Are A Red Flag.

When Evaluating Institutional Investors Ferraris Are A Red Flag.

One of the services we provide at CEORater includes a CEO Personality Profile derived from Natural Language Processing applied to earnings call transcripts. Research out of Stanford University - Charles OReilly and David Larcker - demonstrates a correlation between CEO Personality and company outcomes. Separate efforts apply similar analytic methods toward evaluating institutional investors. Institutional … Continue reading When Evaluating Institutional Investors Ferraris Are A Red Flag.