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Advancing the Art and Science of Investment Screening

Given the data and computation resources available to investors today, surprisingly little progress has been made in the strategies used in investment screening. Even the majority of academic research on fundamental analysis uses simplististic one- or two-factor models such as "growth stocks" (high P/E) or "value stocks" (low Price/Book).

My experience with successful screens is different. I have found that the most successful screens target specific types of companies, or companies undergoing specific changes in their status, and feed rich sets of ideas to the investor within their "circle of competence." The overlooked, obscure company that is in your own circle of competence, highly undervalued, is unlikely to be found through the usual hunt-and-peck methods.

NapaliResearch.com is dedicated to providing insights, data, ideas, and much more to improve screen-based investment screening methods. This allows investors to spend their time on their most productive investment work, not wrestling with simplistic screening tools, relegated to the popular names everyone else is looking at, or spending countless hours with complex spreadsheets analyzing hundreds or thousands of companies to find one gem.

Standard Napali Research Screens

Over time, Napali Research will also offer a wide range of standardized screens that:

  • Apply in-depth financial analysis to construct screens with true economic meaning in both absolute and relative terms
  • Employ many-factor fundamental models to filter for specific company attributes
  • Include strong valuation components
  • Work effectively in the presence of data incompleteness, noise, or outlier values
  • Cull from the most meaningful academic and industry research as well as our own extensive testing methodologies
  • Optionally use the most effective technical indicators for further filtering
  • Are rigorously tested for high statistical significance
  • Are extremely fast, and can deliver results on a daily or other regular basis

Custom Screens

In addition to standard screens, Napali Research can develop proprietary and confidential custom screens through close work with clients. For investors with the inclination to apply their own complex proprietary analysis methods to a large universe of companies, this can be a highly rewarding strategy.

Learn More

Explore NapaliResearch.com. Start at the Screens page for an introduction to the screening ideas and strategies investigated.

 
   
 

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