EventShares is pioneering Policy Investing as a powerful leading indicator and catalyst for companies and sectors.
Policy investing focuses on understanding the laws and regulations that impact companies. It attempts to find mispriced assets and invest in those companies before the market understands the implications to a company’s profitability and operations.
Academic research has demonstrated that legislation has a simple, yet previously undetected impact on firm stock prices. Legislating Stock Prices, written by Dr. Lauren Cohen (Harvard), Karl B. Diether (Dartmouth), and Christopher Malloy (Harvard), found that "A long-short portfolio based on legislators' views earns abnormal returns of over 0.90% per month following the passage of legislation." ¹
We achieve long-term alpha by focusing on policy and how it changes the way companies and sectors operate. Our portfolio management team and policy strategists work seamlessly to construct policy focused portfolios.Visit www.EventSharesFunds.com to learn more.¹ Cohen, L., Diether, K., & Malloy, C. 2012. Legislating stock prices. Journal of Financial Economics, 110, 574-595.