YouGov is gearing up for the launch next month of an investment fund based on research findings from its YouGovAlpha subsidiary.
Chris Rodgers, founder of the agency’s fund manager partner Four Capital Partners, told The Times newspaper (www.timesonline.co.uk
) the launch will represent ‘the first time this sort of information has been systematically put to use in the investment process.’
YouGov, much in the news of late as it successfully predicted
the results of the London Mayoral election, will use its panels of 250,000 consumers and businesspeople to provide investment information that is ‘not yet available from orthodox sources such as companies’ balance sheets or analysts’ research’ according to The Times.
These up-to-the-minute insights will then be used to target pairs of companies on either side of a developing trend or with contrasting strategies, selecting one in which to invest and one to ‘sell’ by going short, first taking into account the extent to which the existing share prices already reflect this potential. This strategy will mean the fund is focused on sectors with large numbers of consumer or small business customers.
YouGov dissolved an earlier joint ventue with Execution Ltd and launched Alpha in August 2007
, billing it as ‘the UK’s only dedicated market research agency with services tailored to the specific needs of fund managers and investment professionals’. At the time CEO Nadim Zahawi said the use of primary market research was ‘in its infancy in the investment community’ but that clients of the earlier venture had confirmed the research findings gave them ‘a genuine competitive advantage’.
Web site: www.yougovalpha.com