The SouthWood Group Research by southwoodhk


									The SouthWood Group Research
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.

Company Overview
The Southwood Group is an equity research house specialising in providing fundamental
research and data analysis, ultimately facilitating trend identification, and finally stock selection.

The company was established in March 2003 at the trough of the global economic correction
following the end of the internet bubble, when investor confidence was at an all time low and yet
arguably of the marketplace was undervalued. Many trading houses at the time sought validation
for their own in house research findings meaning our client portfolio rapidly grew, along with
our reputation for success.
The Southwood Group was founded by a private equity group with experience in all aspects of
investing and legal compliance, all of whom had spent their careers in the global finance industry
from Hong Kong to New York.

The company is founded on ideals of patience, “long haul” commitment to clients and above all
due diligence.

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