- TrimTabs Investment Research
Infobox Company
company_name = TrimTabs Investment Research, Inc.
company_
company_type = Private
genre =Financial Services
foundation =Santa Rosa, CA (1990)
founder =Charles Biderman ,CEO [cite web |url=http://www.trimtabs.com/site/team.php |title=The Team |accessdate=2007-11-14 |date=2007 |work=TrimTabs Team |publisher=TrimTabs Investment Research]
location_city = flagicon|United StatesSausalito , CA
location_country =United States
location =
key_people =Charles Biderman , Founder &CEO Conrad Gann , President andCOO
industry =Financial Services
products =Investment Research ,Asset Management
num_employees = 14 (2008)
homepage = [http://www.trimtabs.com/ www.trimtabs.com]
subsid =TrimTabs Asset Management, LLC TrimTabs Investment Research, Inc. is an independent investment research firm based in
Sausalito, California .Business Description
TrimTabs is an independent research service that publishes detailed daily coverage of U.S.
stock market liquidity --includingmutual fund andexchange-traded fund flows--as well as withheld and non-withheld tax collections. Founded byCharles Biderman in 1990, TrimTabs provides institutional investors with trading strategies and investment insights. About twenty-five percent of the top fiftyhedge funds in the world use its research for market timing.TrimTabs’ perspective relies on the insight that stock prices are a function of supply and demand and have nothing to do with value. To track the supply of stock on both the U.S.
stock market and on non-U.S. stock markets, TrimTabs uses proprietary techniques to collect data on cash takeovers, stock buybacks, new offerings, andinsider trading . To track the demand forstock , TrimTabs measures the daily monetary flows into and out ofmutual funds andexchange-traded fund s and the monthly monetary flows into and out ofhedge funds .Corporate History
Charles Biderman founded TrimTabs inSanta Rosa, California in 1990. The company originally focused on providingstock trading ideas tohedge funds . Its first recommendation was the short sale of Midlantic National Bank, which traded in the high $20s in January 1990. Ultimately, Midlantic was taken over at a price of under $10 to save the bank from bankruptcy.Biderman eventually noticed that no one was tracking money flows into and out of the U.S.
stock market on a regular basis. He began searching for real-time data on money flows of all sorts, including corporate buying and selling,mutual fund flows, and changes inmargin debt.Corporate America became a heavy net buyer of
stock in late 1994, and inflows intostock mutual funds from individuals began to accelerate in 1995. By that time, Biderman realized that TrimTabs’ specialty ofshort selling was not working well because of the sheer volume of cash flooding into the U.S.stock market from corporate America and individual investors. In August 1995, he began to analyze U.S.stock market liquidity in what would later become "TrimTabs Weekly Liquidity Review". TrimTabs' investment approach is described in detail in "TrimTabs Investing: Using Liquidity Theory to Beat the Stock Market" (John Wiley & Sons , 2005).TrimTabs has broadened its offerings in recent years. In 2002, it launched "TrimTabs Weekly Macro Analysis", which uses real-time indicators such as
income tax collections and online job postings to assess the health of the U.S.economy . In 2005, TrimTabs Asset Management was founded. This subsidiary manages money using an absolute return strategy that applies TrimTabs’ investment insights. In 2006, TrimTabs unveiled "TrimTabs Sector Liquidity", which assesses theliquidity of U.S.stock market sectors and sub-sectors. It also launched "TrimTabs Global Liquidity Review", which currently tracksliquidity on theLondon Stock Exchange , theEuronext Paris , theHong Kong Stock Exchange , and theToronto Stock Exchange .On
February 11 ,2008 ,Goldman Sachs announced that it had made a minority investment in TrimTabs through its Hudson Street Services business.Corporate Name
TrimTabs takes its name from the
trim tab that lies deep within an ocean-going ship. Thetrim tab is a minusculerudder that runs the length of the mainrudder . To change the ship’s direction, one must first turn thetrim tab , and then the mainrudder follows. TrimTabs contends that just as the movement of atrim tab determines the direction of a ship, changes in thetrim tabs ofliquidity theory are the key to understanding thestock market ’s direction.Research Highlights
* December 27, 1999. "Historically
bull markets end for one reason and one reason only: the supply of shares exceeds the demand.Liquidity analysis is the only way to know to determine when abull market will end.Liquidity is bullish right now. But that will change starting with the new year. . . .Therefore, starting in February thefree float could grow each month by $60 billion - $23 billion, or $37 billion. Where will the more than $37 billion of new cash monthly come from to stop a market collapse?" (Liquidity TrimTabs, December 27, 2002)* December 26, 2002. “We are as bullish this year end as we were bearish at the end of 2001. This is the first time since the end of 1999 that all three of our
liquidity indicators at year-end were fully aligned with anecdotal evidence. (At the end of 1999) we were bearish, now we are bullish. L1, the net change in the trading float of shares, is bullish as corporate buying outweighs corporate selling. L2, flows in and out of U.S. equity funds, is bullish due to the extreme bearishness of fund investors. L3, margin debt, either shrank more than the market whenstocks dropped or rose less than the market whenstocks rose since July, 2002.” (Barron's Magazine , January 6, 2003)External links
* [http://www.trimtabs.com/ Official website]
* [http://www.youtube.com/TrimTabs YouTube: TrimTabs]
* [http://www.forbes.com/free_forbes/2007/0312/064.html Forbes.com Article on TrimTabs]References
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