The purpose of this list is to give you more insight into some of the names we find interesting or on which we have done some degree of research, but perhaps not to the depth that you have become normally accustomed to on our formal investment ideas. One of our biggest struggles as a research firm is to determine when to officially launch on an investment idea. We recognize that our clients universally want the frequency of ideas to increase and that’s a critical area of focus for the firm for 2016. However, we think many of you would be interested to learn more about the ideas that we are currently in the process of evaluating. Over the past 5-6 years, there have been many short ideas on which we started working that generated significant returns, but never were published as an official “investment idea”. Sometimes an investment idea (long or short) works out sooner than we anticipate, “bandwidth” constraints limit our ability to conduct research, or in a few circumstances another firm has written it up and we’re reluctant to follow the path of others unless we have something truly differentiated to offer.
We have illuminated this issue several times in the past, but one of the structural disadvantages of this platform is that the returns of our investment ideas are measured based on a single point in time at one price. In reality, of course the world of investing does not work that way. On this platform, we get once chance to “get it right” and our performance is measured at that point in time. There have been many great investment ideas over the past 5-6 years that have simply moved to quickly for us to complete our research process. We’re increasingly trying to increase the cadence of new formal investment ideas, but it’s always a constant battle to balance the depth of research and potential returns with frequency.
Here are some key questions we hope we can answer for you about the PAA Research Watch List.
Our initial PAA Research Watch List will be available to everyone. However, starting next quarter the PAA Research Watch List will only be available to Gold or Platinum subscribers.
No. As long time followers of PAA Research know, at the end of each calendar year we publish an update on the performance of our investment ideas since inception. In addition, data on the returns of our investment ideas can always be found on the “Performance” tab of our website.
Possibly, but there are no guarantees. Obviously, these are names on which we have conducted some degree of research so it would be reasonable to assume that some of the stocks mentioned on the Watch List will eventually become formal investment ideas.
There are no formal rules on the number of names that will appear on the PAA Research Watch List on a quarterly basis. We expect to have both long and shorts appear on the Watch List every quarter.
Our goal is to introduce POTENTIAL investment ideas and frame what we view as the investment thesis. Practically speaking, each company on the Watch List will have a 5-10 bullet point explanation as to why the stock could represent a compelling long or short. The Watch List is meant to be a short form format to convey our thinking on investment ideas.
Every time the PAA Research Watch List is updated you will receive an alert in your inbox. Click on the Watch List tab on our website to view the most recent and archived publications on the PAA Research Watch List.
It is possible and always will be disclosed.
Without further adieu…
PLEASE NOTE THERE IS A NEW ADDITION TO THE PAA RESEARCH WATCHLIST: “THE SAF PORTFOLIO”. READ ON FOR MORE DETAILS.READ MORE >
In this quarter's Watch List we take a look at nine names - three potential longs and six potentially interesting shorts.READ MORE >
In this quarter's Watch List we take a look at seven stocks of interest, 3 potential longs and 4 potential shorts.READ MORE >