31
Jan
2011

News & Views: Sabrient Names Scott Brown President

Brown to Push Firm’s Core Business Units


Santa Barbara, Calif., January 31 -- David Brown, Chairman and Founder of Sabrient Systems, LLC, has announced the appointment of Scott Brown as Sabrient’s new president. Sabrient is an independent equity research firm that specializes in custom strategies using quantitative modeling to rank stocks for Alpha generation, risk measurement, and creation of unique indexes that are tracked by exchange-traded funds (ETFs).  Users include fund managers, registered investment advisors (RIAs), high net worth individuals, and companies that create and distribute ETFs.

“Scott will be guiding strategic expansion, tactical refinements and communications outreach for each of our five core business units,” said David Brown. “The year is shaping up as a challenging and interesting one for investors, and he will direct our efforts to forge new relationships and release unique products that will be rewarding for our partners and customers.”

Sabrient’s focus as detailed by Scott Brown is on these 5 business units: 

Index Creation for ETF Distribution

Sabrient creates thematic indexes based on its quantitative strategies, and licenses the indexes to ETF sponsors. Among these are the Sabrient Defensive Equity Index (NYSE Arca: SBRDE) and the Sabrient Insider Sentiment Index (NYSE Arca: SBRIN).

The Sabrient Defensive Equity Index comprises approximately 100 stocks that have potentially superior risk-reward profiles during periods of stock market weakness, yet still offer the potential for gains during periods of market strength. This index is tracked by the Guggenheim Defensive Equity ETF (NYSE Arca: DEF), rated 5-STARs by Morningstar.

The Sabrient Insider Sentiment Index identifies 100 stocks that reflect high insider buying trends and recent earnings estimate increases by Wall Street analysts. This index is tracked by the Guggenheim Insider Sentiment ETF (NYSE Arca: NFO),  rated 4-STARs by Morningstar.

Custom Strategies

Sabrient’s Custom Alpha Models utilize a proprietary engine (FSYS) to generate backtested portfolio performance strategies for hedge funds and private account managers. Sabrient is a contributor to the MW TOPS investment strategy of Marshall Wace, one of Europe’s largest hedge funds. “Our FSYS Platform provides us with virtually unlimited flexibility, with almost none of the limitations of third party development and testing platforms,” said Scott Brown.

Professional Brokers/Money Managers

Sabrient creates custom ratings reports on 6,000 U.S. Equities and 350 ETFs for use by professional brokers and RIAs as an overlay for their client strategies.  Sabrient also produces for brokers and RIAs “Top 10” stock lists based on established investing themes such as Growth, Value, GARP, etc.

Retail Services & Publishing

Geared to the self-directed investor, Sabrient’s retail services include no-charge online access to investment commentary and tips from industry experts, plus three subscription levels that offer increasingly detailed analyses and recommendations, with actionable newsletters at the Platinum Level.

“Our retail customers get affordable, time-tested quantitative research with exceptional ease of use,” said Scott Brown.   These services are accessed through the Sabrient website and blog.

Institutional Retail

Sabrient customizes and licenses retail commentaries, research and actionable newsletters to broker/dealers and/or web aggregators for distribution to their clients.

“Individually or in customized combinations, these segments supply strategic platforms for every type of investment activity, with the analytical detail that leads to informed decisions,” said Scott Brown. “Our Morningstar rankings demonstrate the validity and effectiveness of our approach to investment strategies.”

Prior to assuming his responsibilities as Sabrient President, Scott Brown headed the firm’s product development and marketing for individual/retail investors. His professional background includes sales and marketing leadership for Telescan, Inc. (developer of stock research tools); corporate development for financial services companies; and management of a real estate development firm.

Scott Brown holds a Bachelor, Business Administration, from the University of Houston. He writes the Dark Horse Traders Hedge newsletter.

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About Sabrient Systems, LLC

Sabrient Systems, LLC specializes in unbiased, fundamentals-based quantitative equity research for the benefit of investment professionals, hedge funds, and self-directed investors. The firm analyzes nearly 6,000 U.S. traded stocks and identifies those that appear poised to out-perform or under-perform the market.

Sabrient first published its rankings in 2002, and its models have consistently outperformed relevant benchmarks over a broad range of investing styles, market caps, time frames and market conditions.  Its long/short strategies have produced 10-year annualized returns ranging from 21% to 47%. Sabrient is based in Santa Barbara, California. Visit www.sabrient.com.

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