Peter Simmons, JD
Peddock Capital Advisors – Assets Under Management – $250 Million
AFG Client Since 2008
1.Can you tell us a little about Peddock Capital Advisors, LLC (Who you serve, philosophy)?
Peddock Capital Advisors was established in 2008 to provide customized portfolio management services utilizing individual equities and fixed income securities to meet the goals and objectives of our clients. We manage $250mm in client assets, with much of the equity research provided through AFG.
2. You have been a client of The Applied Finance Group (AFG) since you started your firm in 2008, what sets AFG apart from other equity research providers?
While we have used AFG since our founding, I recognized the merits of AFG’s equity research and underlying investment thesis at a prior firm. Peddock Capital is a boutique firm with five employees, three of which are involved in the investment process to one degree or another. What we believe sets AFG apart from other providers is the consistency of the research, the discipline to the underlying investment philosophy, the historical results, and the ability to utilize one or more of the AFG models in the construction of our clients’ portfolios. The ongoing support we receive both technically and through the investment team is also a great value to us.
3. How has incorporating turnkey strategies like the AFG 50 helped your firm grow?
We use about 85% of the AFG 50 on an ongoing basis, the ability to use the AFG 50 as our core equity model allows us to build high quality portfolios using proven research, and leveraging that capability across a broader client base. Having the AFG 50 available to us allows more time to be dedicated to client facing activities which we believe allows us to grow our business more efficiently and profitably.
4. How does AFG’s research applications help save time and manage client portfolios?
The various optimization tools and excel add-ins allow portfolio managers to quickly leverage AFG’s investment philosophy. For client inquiries about specific stocks the AFG modeling functionalities provide a robust but comprehensive means to identify relative value (or lack thereof). In addition the Quarterly Focus List in conjunction with the screening and replacement idea tools while leveraging the AFG grading system are very efficient methods for idea generation. A personal favorite of mine is the intrinsic value chart which is an excellent way to see how well AFG’s standard intrinsic valuation model has tracked a particular stock’s market price.
5. Any additional comments about AFG?
The merits and utility of AFG’s research process is well supported by historical evidence and obviously leveraging research solutions with such strong track records is important to us. However, AFG also does a great job of supporting the investment process by providing regular education and training to enable users to more effectively leverage the Economic Margin framework and identify value. In addition, AFG has done a good job with listening to users as it looks to better understand our needs and ultimately provide improved tools and functionalities to optimize the investment process.