VERSACE: Utilizing nonfinancial data in investment choices

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- Directors and officers who have pledged company stock;

- Percentage of outside directors versus inside directors;

- Whether board members, particularly audit committee members, are overstretched in terms of the public company directorships they hold.

Our model also examines the tools and frameworks that set the tone for the public company’s governance practices such as quality of the audit committee charter, audit committee report as well as the level of disclosures in the Corporate Social Responsibility Report related to carbon emissions, recycling efforts, waste management, etc.

Data is collected from public company filings as well as information that is published by the company itself. We track all the changes related to the companies in our database and every week the database is updated with all the changes for that week. We publish the date on which changes were last updated for each company.

Q: How do you see this fitting in with the rest of the homework that an investor, individual or institutional needs to do before making a buy or sell decision?

A: Financial figures, ratios and the rest have their role in making an investment decision. A layer of nonfinancial information over and above the basic financial analysis of a company can yield optimal results for an investor. Investors would do well to remember that nonfinancial information, like financial information, is just one piece of the investment puzzle. Used in conjunction with each other, they can shed more light on what is usually a complex decision.

Chris Versace is director of research at Think 20/20 LLC, an independent research and corporate access firm based in Reston. He can be reached at cversace@washingtontimes.com. At the time of publication, Mr. Versace had no positions in companies mentioned. However, positions can change.

About the Author
Chris Versace

Chris Versace

Chris Versace, the “Thematic Investor,” is the director of research at Think 20/20, an independent equity research and corporate access firm located in the Washington, D.C. area. Before Think 20/20, Mr. Versace was the portfolio manager of Agile Capital Management (ACM), a thematically driven alternative investment fund. The groundwork for ACM was laid during Mr. Versace’s tenure as senior vice president of equity ...

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