Why EVA for Investing?

evaDimensions clients include very large asset managers, mutual fund complexes, multi-strategy and equity-only long/short hedge funds, sovereign wealth funds, public pension funds, and small-mid size asset managers.  Our clients use us in a variety of ways, which are unique to each firm’s structure and investment process needs.  Here are some examples of how we’re used:

Clear bridge from quant/structure to fundamentals

  • Front End Focus: Reliably isolate + and – alpha stocks and sectors to narrow the research scope
  • Common language, leading to less bias, better decision-making

 

Efficiently guide where to spend time (screening with no black box)

  • Quality: Best way to rate and assess the quality of corporate performance and management, and know what its worth
  • Growth: Best way to rate and assess the value of growth, with Amazon a prime example, and know what its worth
  • Inflection Points: Best way to spot emerging trends of real moment, both economic and operational
  • Measure true valuation for value and growth investors
    • Differentiate investable value from value traps
    • Separate investable growth from expensive growth

 

Plausibility check, or an insurance policy for your holdings

DOR/CIO management tool to cut through bias/noise; questions to ask

Portfolio Control: Understand, rate, and manage exposure to a telling set of unique risk factors

Actual link to fundamentals

  • Performance Insights: deconstruct a company’s performance relative to its peers in a format that is better structured, and more accurate, informative, and actionable than any other
  • Expectations Insights: Unrivalled ability to reverse engineer share prices and tease out the embedded performance expectations
  • Fundamental Value: The best way (easiest, fastest, automated, with a greater set of ratio reference points and plausibility checks) to convert analyst insights and projection assumptions into value and alpha potential

 

Coverage:   Unique file of standardized proprietary metrics covering 15,000 global equities with daily updates

Simplicity:   Transparent model automated with iPad-ready tools

Expertise:   Dedicated team of experienced professionals, bringing the best practices of EVA to the market with real investable insights

 

To learn more about the EVA framework and its relevance for investing, read EVA for Investors.

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