4th August 2011
SABRIENT SYSTEMS ACQUIRES QUALITATIVE RESEARCH UNIT OF GRADIENT ANALYTICS
Move Strengthens Sabrient’s Capabilities & Global Reach
SANTA BARBARA, CA — Equity research firm Sabrient Systems announces the acquisition of selected assets of Gradient Analytics, including the use of the brand “Gradient Analytics.” The business unit acquired by Sabrient will continue to be led by Gradient co-founder Dr. Donn Vickrey and will deliver analyst-driven research and services via Earnings Quality Analytics, Equity Incentive Analytics, Gradient International and Gradient Consulting, benefiting clients that include hedge funds, actively managed ETFs, mutual fund distributors and privately managed accounts.
“Gradient is a highly profitable and proven enterprise with significant potential for expansion,” Sabrient President Scott Brown said. “This acquisition brings a significant new dimension to the creation of our unique indexes and custom investment strategies, and thus to our ability to maximize profitability for our clients.”
Established in 1996, Gradient Analytics is one of the country’s leading independent research firms providing objective, academically rigorous research and qualitative stock ratings for institutional clients. It is one of a small number of Independent Research Providers (IRP) that provides in-depth analytical coverage of equities in the U.S., Europe, Asia and Latin America.
“Gradient is widely and rightly known for well-informed, well-constructed opinions on investments, and the forensic team that is now part of Sabrient is unquestionably the best in the industry,” said Brown. “The resources and performance records that made the Gradient brand so impressive to Sabrient are anchored by the ethical commitment, passion for research and innovative thinking that we share wholeheartedly.”
As part of the acquisition agreement, Sabrient Systems acquired all of Gradient Analytics financial analysts and sales and client relationship management personnel, in addition to the Gradient brand.
Gradient co-founder and director of research Dr. Vickrey said, “I am thrilled that we are retaining our entire team of talented analysts and experienced sales and client relationship staff. The Gradient team really is the best in the industry and ultimately creates the value for clients.”
The quantitative research business unit not acquired by Sabrient will operate under the brand Verus Analytics, and remains dedicated to discovering new sources of intelligence and alpha for the financial markets. Verus retains all senior management, financial and product engineers and development team members, including President and CEO Tom Barrett and chairman and chief scientist Dr. Carr Bettis.
“Our goal was a synergistic opportunity for Gradient Analytics to maximize its growth, and we could not have found a better fit for this exceptional group than with Sabrient,” said Barrett. “Sabrient’s acquisition translates to more robust and diversified investment research for both Gradient and Sabrient clients, and impressive potential for expanded profitability.”
Sabrient’s acquisition of Gradient is the most recent in its steps to expand its core business units. In March, Sabrient and Stutland Volatility Group (SVG) formed Stutland Volatility Funds (SVF), an asset management firm offering a suite of long/short quant funds designed to deliver superior stock selection with enhanced risk management.
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 outperform or underperform 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.