HAVING A PROVEN SYSTEM & TRACK RECORDS FOR BUYING AND SELLING
ON STOCK EXCHANGE WORLD WIDE HISTORY
Our story begins in the 1994s, when our chairman, Marco Licani Della Valle, then a quantitative equity analyst at at Morgan Stanley, was designing quant models to help institutional investors beat the market. During that period he discovered the principle that still guides PFT Asset Investment Management today Earnings estimate revisions are the most powerful force impacting stock prices.
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HOW WE PREDICT STOCK PRICE:
HOW WE PREDICT STOCK PRICE:
PFT’s study showed that stock prices respond less to changes in actual earnings than they do to changes in analyst estimates of the earnings – a very important distinction.
Those stocks most likely to outperform in the future are those whose earnings estimates are being raised today. Similarly, the stocks most likely to underperform are the ones whose earnings estimates are being lowered today.
In the 1970s and 1980s, analysts were only estimating one item for a company, its EPS. Today, 40 years later, brokerage analysts forecast many items: a company’s EPS and Revenue at the company and segment levels as well as many non-financial metrics.
PFT Investment Research analyzes the changes in these estimates and generates the PFT Rank for each product. The PFT Rank, since its inception has proven to be a reliable indicator of future stock prices.
KNOWING WHEN TO BUY AND SELL
Each night PFT Investment Research recalculates the PFT Rank for the 5000 stocks followed by the brokerage analyst community.
The stocks are classified into five categories based on the PFT Rank, Strong Buys are the 5% with the strongest upward estimate revisions, while the Strong Sells are the 5% with the strongest downward estimate revisions, as illustrated in the chart
FACTORS BEHIND THE RANK
AGREEMENT
This is the extent to which all brokerage analysts are revising their earnings estimates in the same direction.
The greater the percentage of analysts that are revising their estimates higher, the better the score will be for this component.
MAGNITUDE
This is the size of the recent change in the current consensus estimate for the fiscal year and the next fiscal year.
UPSIDE
This is the difference between the most accurate estimate as calculated by PFT and the consensus estimate.
SURPRISE
Over the years PFT Investment Management Department has enhanced the use of the PFT Rank in conjunction with other equity market anomalies.
We believe that these anomalies identify equity market inefficiencies that can be translated into investment strategies that will outperform appropriate benchmarks.
PFT INVESTMENT MANAGEMENT RESULTS
PROVEN RESULTS
Our disciplined investment philosophy has placed us in the top rankings out of thousands of equity managers in the TipRanks Equity Universes.
What’s even more impressive is our value-add: each of our strategies listed below performed well above the median return for each respective equity universe.
CONSISTENT, SOLID RETURNS THAT ARE BETTER THAN THE COMPETITION
