Tandon in the News
Thesis Finds Seeking Alpha Delivered Tremendous Value - Outlines Specific Performance Scenarios
- Seeking Alpha February 23rd, 2015
- Source: http://seekingalpha.com/article/2941236-thesis-finds-seeking-alpha-delivered-tremendous-value-outlines-specific-performance-scenarios#comments_header
In a systematic study conducted by a financial engineering graduate student at the Polytechnic Institute of New York University, Seeking Alpha articles predicted statistically significant price adjustments in recommended securities.
The study analyzed over 5,900 articles and over 90,000 price points between 2012 and 2014. The study tracked hypothetical $10,000 portfolios over time.
Micro and Small Cap recommendations provided consistently large cumulative returns. Short recommendations were found to be especially predictive.
This is the first public study of price responses over short-term time horizons (intraday). This study confirmed earlier findings of academic researchers that examined longer time periods (as in WSJ).