Strategic Manager Targeting

IF YOUR COMPANY IS UNDERGOING MATERIAL CHANGE OR PLANS TO IMPLEMENT SIGNIFICANT CHANGE IN THE FUTURE, you can bet that the characteristics that attracted your current shareholders will change as well. As those characteristics change, so will your investor base. DeMarche Strategic Manager Targeting puts you ahead of the curve now so that you can cultivate groups of investors who will fit better with your company's future.

For example, the utility that diversifies into other consumer services will want to attract investors who own consumer stocks to replace income-oriented shareholders who may leave due to changes in the dividend policy. Likewise, the communications company that pioneers a new technology will need to attract a class of investors who are more compatible with companies in the early stages of a product's life cycle than mature companies.

Examples of change are as diverse as American business, and every bit as certain. The bottom line is that every company will undergo change at some time. (See also: Strategic Modeling.) For investor relations professionals the challenge is knowing the managers who invest in what your company will be in the future.

DEMARCHE'S APPROACH TO STRATEGIC MANAGER TARGETING

Using proprietary analytical tools, we can observe how changes in capital structure, industry exposure, dividend policy, growth rates, profitability and a myriad of other company and financial characteristics affect stock returns. Our research capabilities linked with our massive securities databases enable us to simulate changes and quantify their impact on stock returns. This analysis becomes the basis for identifying investors whose objectives are compatible with your "new" company and its unique characteristics.

The database of institutional quality investment management firms that we've developed over the last 27 years is our primary source for identifying potential investors. We categorize investment management firms with multi-dimensional style codes that identify investment styles, the universe from which portfolios are built and specific stock selection criteria, such as earnings growth, high relative dividend yield and low price-to-book. Critical information about investors is summarized in DeMarche Manager Profiles, which enable you to focus your discussions on areas of greatest importance to each manager.

WHY USE DEMARCHE

No other firm knows the institutional investment community better than DeMarche. Since the mid 1970s, we have committed a major portion of our research expenditures to knowing and understanding investment managers. Through that effort, the firm has conducted thousands of extensive face-to-face, analyst-to-analyst meetings with the top investment decision-makers in their offices and in ours. We do not rely on portfolio managers to select their investment style from questionnaires or telephone surveys. Instead, DeMarche categorizes managers based on observations of actual portfolios.