Fundamentally the Southwood Group exists to research, identify and analyse undervalued and under-known companies for its institutional clients.
At the Southwood Group we do not select the stocks that we review, but rather we are contracted by our clients to review a given stock, and to provide insight into the variables that are most likely to affect its price movement, so that our clients may capitalise at the right time.
Per year we are able to review approximately 600 stocks, which allows us to know which of these small companies is most likely to succeed over the ensuing investment period.
The Southwood Group like all other research houses, utilises all basic calculations and crude assessment techniques to review its raw data, prior to employing its own in house calculations.
After spending thousands of man hours collating and reviewing data, and drawing inferences, only then are we able to begin the process that makes the Southwood Group unique among its peers. Once we believe we have correctly identified an equity that is undervalued on the market we then employ our dynamic in-house multi-layer analysis process which finally generates a multiple correlation from which we are able to make the decision to dismiss the stock or recommend it to our traders.
Timing is critical in almost all industries, but this was never truer than within the investment business. Once we are satisfied that we have identified an undervalued financial instrument we then begin longitudinal tracking; it is at this moment that we and our clients undertake risk. As a result of the research conducted we have minimised this risk, and made attempts to control any extraneous factors that may affect the investment.
Unfortunately due to the strict criteria we work with, very few analyses result in a recommendation to our clients. From the initial 600 dossiers compiled, less than 1% is recommended on an average year.