There is Fundamental analysis and there is Technical analysis and a lot of investors think it ends there. But there is another body of analysis that is essential to the process which is not so obvious, analysis that any fund manager in the small and mid-cap space has to master and respect.
It is the analysis of “Flow”, or in layman’s terms, knowing who is buying and who is selling a stock and when. You can do as much fundamental analysis as you like but it is irrelevant if a major shareholder in an illiquid stock is moving in or out. Some institutional holders are so large that their buying or selling can last for months and in so doing dictate the price trend for months. Puritanical Buffett sycophants will tell you that the market is a voting machine in the short...Continue Reading