TrimTabs Asset Management has renamed itself FCF Advisors, standing for Free Cash Flow. The firm is a 2011 spinoff from TrimTabs Investment Research.
The new name is accompanied by new branding and two new websites: FCF-Advisors.com for its advisory and index business, and FCF-Funds.com for our its in-house ETFs and those they sub-advise.
For the past decade, TrimTabs Asset Management’s mission has been refining the analytical power of free cash flow factors to better identify quality companies.
The firm writes that 10 years ago, when it first saw the potential of this approach, marketing and branding were the last things to consider. “We had a singular focus: deep research into how free cash flow data rather than company earnings could inform a better Quality Model. Factors in this model combine to identify the companies with current strong business performance, as well as those with the greatest chance of beating the market over the full economic cycle,” the firm writes. “This approach has little to do with share buy-backs or other elements of equity liquidity. Instead, everything we do comes from free cash flow analysis. This made the name change to FCF Advisors an obvious decision.”
Bob Shea, CEO and Chief Investment Officer says: “Our Free Cash Flow Quality Model is simply a better predictive tool for Quality investors. By moving beyond the uncertainty of company earnings data, we have delivered a more reliable indicator of current Quality. After all, if you cannot trust your inputs, how can you count on the results?
“Furthermore, the model has demonstrated superior predictive power for outperformance over the cycle, and strong correlation with ESG and sustainability scores: Morningstar scores both our Quality ETFs a maximum five out of five for sustainability, placing the FCF US Quality ETF (TTAC) and FCF International Quality ETF (TTAI) in the top 10 per cent of all funds globally.”
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