Sabrient Systems

I’m reposting this updated introduction to Sabrient Systems for those who may have missed it. We hope you are enjoying our new section and appreciate your feedback. – Ilene

Dear PSW Readers:

Sabrient Systems is an independent equity research firm founded by former NASA scientist and retired CEO of Telescan, Inc. David L. Brown. David L. Brown has designed and developed a stock search program, ProSearch, and a market-timing indicator, the Brown Breakout Ratio (BBR). He was named Stock Traders Almanac’s Man of the Year for 1988 for "[showing] the average investor how to spot the stocks that the hottest money managers are buying." He has edited several market letters, including the Undervalued Growth Report, a real-money virtual portfolio which he published for 10 years with a record of nearly 20% compounded annual returns. David taught finance and security analysis courses at the University of Houston and has documented his investing expertise in four books on investing, including All About Stock Market Strategies : The Easy Way To Get Started and Cyber-Investing: Cracking Wall Street With Your Personal Computer (Wiley Investing). The latter was named Book of the Year in 1997 by PBS’s Inside Money.

Joshua Anderson, who along with David heads Sabrient’s research team, is a financial model developer and Sabrient’s computational-systems architect. His research interests include developing models of investor behavior at individual and institutional levels. Prior to joining Sabrient, Josh developed prepayment and corporate-bond risk models for BlackRock Financial Management. He received a Ph.D. in Economics from the University of California at Santa Barbara.

Also at Sabrient, Stephen Stonefield, specializes in the management of financial conglomerates and advising corporations on financial matters. Stephen spent seven years as Credit Suisse Chairman in Asia and brings a wealth of knowledge and contacts to Sabrient.

Sabrient’s mission is to find new and better ways to measure, analyze and interpret market data in order to successfully adapt to changing market conditions and help clients enhance their investment performance while managing risk.

Sabrient’s clients include virtual portfolio managers, financial advisors, self-directed investors, and several Online brokers. Wall Street investment banks such as Credit Suisse, Deutsche Bank, Thomas Weisel, and UBS Warburg have provided independent research to their retail customers with Sabrient’s Ratings Reports. Sabrient provides multiple Long/Short strategies to Marshall Wace, one of the largest hedge funds in the City of London.

PSW is teaming up with Sabrient to provide scientific and statistically sound methods in the design of stock market strategies. Sabrient offers a variety of services for investors with differing needs and objectives, ranging from free materials and commentary to a variety of subscription services providing buy and sell ideas on a regular basis.

In addition to the free material which can be found on Sabrient’s website, here is a description of three of Sabrient’s current offerings:

The Dark Horse Hedge

New, intermediate to long-term virtual portfolio model started on June 30, 2010!

For the first newsletter and initial stock positions, click here. No sign-up required, just visit The Dark Horse Hedge for updates.

More about The Dark Horse Hedge:

Scott Brown, Managing Director – Retail Division at Sabrient, is launching the Dark Horse Hedge (DHH) newsletter with Ilene at Phil’s Stock World. The DHH strategy is based on Sabrient’s highly successful and popular Investors’ (H)Edge product. The DHH virtual portfolio being constructed now is a Long/Short retail virtual portfolio takes advantage of technical market trends to tilt the balance of LONG vs. SHORT in bearish, bullish or range-bound markets.

The DHH newsletter follows a number of guidelines in its attempt to increase "alpha" (measure of return on a risk-adjusted basis) while minimizing systemic risk, or "beta." Beta is a measure of the volatility of a virtual portfolio in comparison to the market as a whole. To keep beta low, the DHH virtual portfolio will have both long and short positions and, consequently, dramatic moves in the market will always be in the direction of at least part of the virtual portfolio. DHH will focus on being long high quality stocks, and short low quality stocks. Long positions should fare better than average during market selloffs. In contrast, short positions, selected from the lowest ranking stocks, should perform well during selloffs. These should also underperform the higher quality names in a strong market. Because the stock positions will generally held for intermediate to long periods, these positions are ideal for using with option strategies taught by Phil Davis, of Phil’s Stock World.

To learn more, read the first installment of The Dark Horse Hedge in which we establish initial short and long positions.

Platinum Level Service

Investor’s (H)Edge is a balanced Long/Short virtual portfolio based on the Institutional VCU (Value Change Up) strategy. This product is suited for any individual investor who wants the peace of mind to know that their virtual portfolio is protected in any market, up or down. Investors’ (H)Edge is also attractive to most individual investors because it only requires monitoring on Thursday’s to review 1 long and 1 short position. The Investors’ (H)Edge virtual portfolio has gained +8.6% for 2010 as of July 1, while the S&P 500 is at -6.84%. Read the most recent Investor’s (H)edge here: Investor’s (H)edge.

Also in Sabrient’s premium service is Sabrient’s Select Opportunity Virtual Portfolio . SSOP monitors stocks with highest and lowest Sabrient Outlook scores seeking "Select Opportunities" to make short term trades based on technical breakouts identified by Sabrient’s chief technician. Alerts are sent via email during the trading day advising clients when these "Select Opportunities" occur.

Investor’s (H)edge and Select Opportunity virtual portfolios are subscription services, both are included in the platinum level service. Sabrient is providing PSW with an exclusive window into their current positions and recent activities. Platinum users get access to everything Sabrient has to offer including these 2 actionable alert services for $37.95/month and PSW has been getting a glimpse of those programs in real-time.

Click here for a free trial.