What does MAP do? THE QUICK ANSWER: We look at unusual institutional activity to identify which stocks the really big investors are moving their money to and from. Then we marry our scoring technique to showcase stocks that are likely to go up and down. We sell high level research to hedge funds and institutions ranging in size from a few hundred million dollars in assets up to multi-billion dollar managers.
WE TRY TO FIND OUT WHEN LARGE INVESTORS GET INVOLVED EARLY ON. WE HAVE A HISTORY OF SUCCESS IN DOING SO. WE BRING THOSE STOCKS TO YOU.
THE LONG ANSWER: Do we win all the time? Absolutely not. But we take a statistical approach to investing. That is- we look at stocks altogether in a big crowd. We look for traits in individual stocks that we have learned to carry time-tested qualities that help a stock grow year after year. When we layer this with our signal we improve our odds. We are all about stacking the odds in our favor and applying that mentality to investing. The premise is simple: with the odds in your favor, you should win over the long-term. And not just win, but also beat the market.
Let’s talk about our proprietary signal for a minute. These signals are rare, but at the same time they happen every day. When we say rare, we mean out of the 4000+ stocks we look at every day in the U.S. alone, we get on average about 100 of these unusual buying and selling signals. At this point, we know this is more than the everyday action in the stock and then we delve in deeper.
Our signal works like this: when you want to buy a stock, you place your order for 100 or so shares and you get filled. Your trade is hardly even noticed in the hundreds of thousands or millions of shares that trade every day. But what happens when huge money managers want to own a stake in a stock? Does that happen in one trade? It can but that is unlikely. Think about it, if you managed billions of dollars and wanted to buy a stock- 100 shares isn’t going to do it! You need to take a meaningful position that will have an impact on your overall portfolio. Wouldn’t you want to keep it quiet? Maybe, but that is not always easy to do.
How do we know when the big boys trade their stocks? The MAP founders have traded literally BILLIONS OF SHARES OF STOCK. We traded and sold derivatives and stocks for big investments banks for a combined time of over 25 years. Our light-bulb moment came when one day out of the blue, we had an order from a big client to buy shares in a stock; let’s call it XYZ. We went out and found him a seller of 100 thousand shares. We did the trade and we were happy. Our buyer however wanted more. We found more stock and traded another 100 thousand shares. By the end of the day we traded a million shares of this company; this was millions of dollars worth of stock. We were ecstatic. That was big, but our buyer wasn’t done. We had this order every trading day for a month. Think about that. By the time our buyer was done he had bought a large percentage of the company’s outstanding stock through our desk. It wasn’t until a 13D filing of material ownership hit the news that we realized our buyer had not only bought through us, but through several other big banks as well. An activist hedge fund announced that it now owned a material stake in the stock of this company.
The important thing is this: since the first day we traded XYZ until the news hit that the buyer had bought a large percentage of the company, the stock went up over 50% in a month.
We knew this was anything but ordinary, but we also knew he wasn’t the only investor taking big stakes in companies. There had to be examples like this fairly frequently. We spent years and found a way to find these orders early on without being on the trading desk. We studied price, volume, and volatility in order to be able to see when something is out of the ordinary. We now had a way of detecting these orders just as they got started. Now here's the catch, these massive investors don't need to make the filing until AFTER they have accumulated tons of stock. So, when they start buying is right what we are looking for. A big institution steps in, and even if they are trying to be quiet about it, that can only last for so long until they disrupt the normal behavior of a stock. This is where price, volume, and volatility come in. When those three things get out of whack, is when our ears perk up. Naturally we measure many other aspects of a stock many different ways, but for the purpose of simplicity, when a billion dollar manager starts buying up shares and things are out of the ordinary, that's what we love to see.
Naturally not all stocks are created equally, nor are all money managers who take big positions! So, we don’t suggest just buying any stock that someone else is buying. We overlay these big buying and selling signals with a proprietary metric to identify the strongest and weakest stocks in the market. For longs, we look for companies with growing sales and earnings, with growing market share that reside in leading sectors among many other things. In fact, we look at nearly 200 data points every day and boil it all down into one neat and easy to use score. When we get a big buying signal matched with a high score, this is when we think the opportunity is right to strike.
Our stats say we are right.
We bring a stock like this to you each week in the MAP View report. This report shows how the sectors stack up to each other, where we see unusual institutional activity in the sectors, and also our own proprietary overbought/oversold indicator for the general market. This, too, has nailed when the market has been oversold and highlighted many peaks as well. To see examples of our research for FREE, click here.
You don’t have to just take our word for it. We have teamed up with the masters of financial engineering departments of ivy league schools and turned their master’s candidates loose on our data. Their findings are shown in various whitepapers which explain the scientific method behind what we do and how well it works. They examined the effectiveness of our proprietary score, track a model portfolio over years, and examine various ways to use our data.
We not only worked at big well-known Wall Street banks, but we also have associations with some of the best names in the business. Luke and Jason spent years and years on derivatives trading desks at Cantor Fitzgerald and Jefferies. Once we founded MAP in 2014, we teamed with Bloomberg to exclusively sell our research. We have a strong association with famed growth-investor Louis Navellier and we contribute regularly to his firm, Navellier & Associates. Most recently we have teamed up with Investopedia as contributors there.
We are not currently aware of anyone else out there who does what we do with the experience that we have. We are also not aware of anyone who uses these methods to accumulate a track record like we have. Keep in mind, we don’t win all the time, but we do win more than we lose and our wins are bigger than our losses; for years now.
Flipping a coin is fifty-fifty and no one wins in that game for long. But, if I told you your coin has nearly 75% chance of showing up heads with wins larger than losses for the last 5 years, would you play? We like taking trades where we go in with a statistical edge of winning- odds in our favor.