Forensic Accounting can be enhanced through the use of a long/short structure. This way, you're capturing the best financial trends while also seeking to profit from the worst. Short positions add value, because when accounting goes wrong, it can go really wrong. While outright frauds are few and far between, earnings misses and the reduction in expectations can really sink a stock and negatively impact your portfolio.
Investors then get a boost from this index enhancement. By carving out a piece of a large-cap U.S. equity allocation and enhancing it through the use of an alternative weighting methodology that focuses on corporate honesty, you may be able to improve your portfolio’s risk/return profile and give investors greater peace of mind.
- Wienberg, Christian, August 13, 2015. "GN Shares Drop as Headset Sales Fall, Accounting Fraud Detected," Bloomberg Business. Referenced from: http://www.bloomberg.com/news/articles/2015-08-13/gn-shares-drop-as-headset-sales-fall-accounting-fraud-detected
This article is for informational purposes only, and is not an offer or recommendation to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Further, none of the information and material in this article is intended to constitute legal advice, tax advice, investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Additionally, nothing herein shall be deemed to constitute an offer or a solicitation of an offer to provide advisory services to any person in any jurisdiction where such offer or solicitation would be unlawful or otherwise prohibited. Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Investing involves risk. Principal loss is possible. Note: It is not possible to invest directly in an index.