President, Chief Investment Officer Savannah CapitalPartner, Day Hagan Asset Management
Under my direction, Savannah Capital Management (SCM) moved from primarily an investment management firm to becoming a boutique research house that is now in partnership with Day Hagan Asset Management. Historically, SCM’s investment performance has continually outpaced the major investment indexes. A sample list of companies, and their returns, is available and is public record as a result of my newspaper column. The investment style under my direction is value oriented using fundamental analysis with particular attention paid to various cash flow and intrinsic value models.
To further the firm’s scope of business and expertise I directed much of the firms new business policy towards providing proprietary investment research to the private equity and venture capital segments of the securities industry. Included in this effort are research reports for small cap public corporations. On occasion, our research reports have increased a client company’s share price by as much as 20 percent.
Whether writing for investors, or selecting investment candidates for inclusion in a portfolio, one of the requirements is that our research delineate clearly a corporation’s intrinsic value using various discounted cash flow models, along with developing proprietary earnings forecast and target share price. That format is also carried over into my newspaper columns, which accounts in part for their ever increasing popularity.
For small cap clients, we always try to augment a client’s standing in the eyes of investors by spearheading the strengths necessary to increase investor confidence and establish brand image and uniqueness.
In all cases, a key objective is to always underscore the subtleties of a company that others may have missed. For example, it is my responsibility to ensure that shareholder value is illustrated in concrete terms that go beyond just earnings and free cash flow. To that end, I ensure we include factors such as a company’s tactical and strategic planning, R&D, product pipeline, raw material availability, labor pool, barriers to competition, capital investment and management ownership. The underlying thesis is always that investment capital is allocated and priced in accordance with a company’s perceived focus on increasing shareholder value.
My experience in dealing with Wall Street can be attested to by 20 years of writing Wall Street newspaper columns published nationally. While living in Savannah, WSAV TV, an NBC affiliate, selected me to be their “Wall Street expert,” charged with offering up live Wall Street commentary for the morning and evening news. This was in addition to my work at Savannah Capital. I have also been selected to speak nationally for organizations such as the American Association of Individual Investors.
As an adjunct to the company’s research work and my newspaper column, I was instrumental in developing the Rudd Report web site, www.RuddReport.com. The site archives my newspaper columns, along with some of the research material contracted to Savannah Capital and carried out under the auspices of the Rudd Report. I am also called on regularly to speak on the subject of investing on Wall Street and in particular the risks involved. My expertise is at the level that I have in the past been requested to appear as an expert witness in investment fraud trials.