Investor dynamics

Investing vs Trading

Different investors have different objectives and investment horizons. The balance between long term investing and shorter term trading can have a profound effect on shareholder dynamics.

Longer term investors often provide the continuity and stability associated with a holistic outlook, while shorter term traders often provide liquidity and increased volatility associated with their more speculative perspective. The balance and interaction between these different objectives creates a unique opportunity for listed companies to understand long-term investors’ and shorter-term traders’ dynamics, offering insight into relative influence of different investors, market volatility and liquidity while enhancing discussion with senior management or dialogue with investors.

Irithmics’ enhanced data and AI technology measures the dynamics between long and short-term shareholders, helping expose trends and explain patterns and changes in a company’s share register.

Bullish vs Bearish

Interaction between buyers and sellers is a cornerstone of capital markets, but goes beyond supply and demand.

The simple sentiment labels of “buyer”, “positive” or “bullish” are inadequate to adequately describe the complex processes surrounding investor decision making. As listed companies seek to better understand institutional investors and develop their shareholder register, it is necessary to appreciate the strength, or conviction, of investor sentiment. Knowing an investor is likely to have a positive outlook is useful, but knowing the likely conviction of that outlook is more meaningful and ultimately more instructive.

Irithmics assesses investor sentiment and conviction, providing public companies the data and technology to better understand, plan and manage their shareholder register with greater clarity and purpose.

A bull and a bear

Investor base diversification

The dynamics and equilibrium of long and short term investor objectives and of buyers and sellers is reflected in the richness and diversity of a company’s investor base. The composition, structure and state of which reveals much about a company’s market interaction and shareholder register management or development: highlighting potential strengths or exposing possible challenges.

Ensuring the shareholder register evolves and develops is essential, but understanding how to achieve this is challenging. The ability to assess where the company’s investor base is likely to be weakest, needs improving or how this might most effectively be achieved significantly assists active investor relations efforts.

Irithmics assesses investor base diversification, allowing companies to measure and monitor the maturity and evolution of their investor universe and understand the effects and likely consequences of an under or over developed investor base.

Leaves

Behaviour drivers

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