A fundamental question for investors is 'what is your edge?' Starting with the idea that each time we buy or sell, someone else is making the opposite decision, anybody seeking to maintain their investment performance has to have an answer to that question. It could be better analysis, or a more disciplined approach, or that one has turned over enough rocks to find something new that no one in the market is watching.
Slingshot Insights goes one further step with the 'what is your edge' question; their approach is to find experts on a given topic and ask them about what does or doesn't matter. Given Slingshot Insights' focus on healthcare and biotech, where expertise is at a premium, getting scientific or other high-level insight would seem especially 'edge-worthy'. The group's Marketplace service is fittingly called Become The Smart Money. We emailed with the team to hear about their approach and about what they're hearing in the still rocky healthcare sector, and where they're looking to learn more.
SA Marketplace: Could you talk about your approach generally with Slingshot Insights? What led you to this direction?
Slingshot Insights, author of Become The Smart Money: At Slingshot Insights we work to connect investors with questions to the most knowledgeable experts with answers. Why do we do this? Because we know that the best capitalized professional investors spend more money on expert and management access than any other diligence resource. Until now, these tools were not affordable for the vast majority of people. We think direct access to those closest to the situation, be it doctors, buyers, or management teams, brings life to the independent research investors currently do.
By speaking to experts directly, investors are able to probe big picture proclamations by management teams. We are currently focused on healthcare with plans to expand into additional sectors in 2017.
We started with healthcare because of the complexity and diversity of the industry. For example, if a management team has claimed a new medications addressable market is 500k patients, a lot more research needs to be done. Speaking to a physician who has treated the illness for 20 years and was involved in the drugs development can provide valuable granularity to that number. Carefully crafted questions and follow-up inquiries can peel back patients that might be too sick to go on therapy, already satisfied, or contraindicated. Often these nuances can mean the difference between missing launch estimates and a huge takeout premium.
SA: How do you make sure to get value out of the calls? Interviews or Q&As can be tough to control, so how do you handle that?
SI: We have many steps and procedures in place to ensure our customers get value from the telephone interviews we set up. First and foremost is expert selection. We screen each expert for relevant experience, analyze their biography, and evaluate more than one candidate. The experts on our network are often in the small group of authoritative voices on a specific topic. They are called Key Opinion Leaders for a reason and even other professionals look to them for direction. Once an expert has been selected, we organize both specific questions and an overarching goal of the conversation to make sure the time is well-spent. By connecting preparation with selection we are able to consistently deliver insightful conversations.
A good expert is essential, but a strong call leader is also important. Our calls are led by an impressive group of investors, many of whom manage millions of dollars professionally and have closely followed the companies discussed for years. We have been consistently impressed with the caliber of dialogue and degree of sophistication our call leaders bring to the table.
SA: And then where does your expertise in the industry come in? When making your final conclusions, if any, where is there room for you to insert your opinion and analysis independent of the collective expert opinion (for example, if you have 2 or 3 experts who disagree on something)?
SI: An investors individual experience is critical to maximizing the value of a call. Understanding the salient points on a topic going into the conversation can often mean surprising the expert with a good question.
Beyond asking clever questions, interpretation of the answer also takes skill. Frequently investors listening to the exact same conversation will come away with different conclusions on the investment implications due to their own larger experience and knowledge basis. Oftentimes as professional investors do, our members will execute multiple calls on a topic, further refining investor questions and drilling further into specific learnings from the prior call(s) to form the basis for a strong investment thesis.
SA: What's the biggest revelation you've heard on a call over the last few months, and what's the significance for investors?
SI: Often the biggest revelations will be surprising answers the expert takes for granted. This dismissal of a management claim out of hand can be particularly surprising to call listeners. Two recent examples are particularly stark. In the first an expert explained why anatomically a drugs delivery method would not work for that indication. The drug just wouldnt reach the part of the eye needed to treat the disease. A second involved a new treatment similar to what was the current generic standard of care, but supposedly did not cause 2 key side effects. Talking through these improvements the doctor made it very clear the risks were theoretical at best and not something he or his patients were worried about in reality. These comments are very actionable and a great check against rosy management proclamations.
SA: In the previous roundtable you joined, you mentioned healthcare policy was a big factor to watch for, while at the same time mentioning skepticism that drug pricing would change much. With a few more weeks of information, what's your current outlook for the regulatory/political environment for healthcare companies?
SI: Sadly it seems that the political bashing and rhetoric around healthcare over the past 12-18 months has soured many investors on the space. General interest is down and sexy stories are harder to find. We have the view that sectors out of favor are the most fruitful for diligence and selective investment. Value exists and sizzle is cyclical.
SA: You also mentioned in that roundtable that Slingshot Insights doesn't tend to take positions. How come?
SI: We see Slingshot Insights great value as empowering investors to form stronger theses for where they put their money. By serving as an open platform connecting investors with information, the communitys creativity and idea generation is endless. Much like Seeking Alpha only endorses strong articles, rather than forming a portfolio, we see ourselves as a platform rather than one more stock tip newsletter. Our offering is experiential and is hands-on for our members. We believe the only way to consistently beat the market is with well-researched and differentiated ideas, not a hot tip.
The differentiator for Slingshot Insights is broad access to this previously closely guarded resource. Despite professional investors spending more than $600mm annually on expert access, the number of investors utilizing it was a small % of the overall market. We see these conversations becoming the backbone of countless investors' theses and raising the caliber of investment discourse broadly.
SA: What is an area of strong interest for you right now, and why?
SI: As we mentioned in the round table recently, oncology remains a very hot topic; not only because oncology broadly represents dozens of smaller diseases, but also because of the degree of innovation in the field right now. Investors, governments, and scientists have focused on oncology broadly for many years now and that work is finally bearing fruit.
One of the biggest cancer conferences of the year is the first week of June and a list of all the papers and presentations were released this past Thursday (4/20). Events such as ASCO are where the progress of an entire medical field is unveiled, and investors are rightly very excited and focused on them. We will be hosting a number of Expert Interviews and Management Calls both before and after this event to help orient investors on the latest breakthroughs.
SA: What is an area you are finding more difficult for investors or experts to shed light on, and what are the challenges in that area?
SI: The hardest area for us to get good experts on right now is public policy. Through a combination of regulatory restrictions on what government employees may speak to investors about as well as a general lack of political consensus, it is an opaque topic. Fortunately, there are still many names on both the long and short side that can work despite these challenges.
***
Thanks to Slingshot Insights for joining the Roundtable! If you are interested in their work, follow their profile. And click the Become The Smart Money link if you're interested in checking out their service.
Follow the SA Marketplace account to get our Roundtable articles - usually published Saturday morning - emailed to your account. We check in with some of our new and top Marketplace authors, and convene Roundtable discussions on broader topics. You can click the button below or above this article to follow the account.
Next week's Roundtable: Personal Finance
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Read the original here:
Marketplace Roundtable: Talking To The Experts - Seeking Alpha
- Biotechnology Research Among Science Returned to Earth - ISS National Lab - May 5th, 2024
- Program to prepare next generation of biotech experts receives renewed funding - The University of Rhode Island - May 5th, 2024
- Designing drugs with reversible activity - Nature.com - May 5th, 2024
- ScienceLIVE helps answer 'What the Heck is Biotech?' for career-minded adults - UMass Medical School - May 5th, 2024
- Boston Micro Fabrication Launches BMF Biotechnology Inc. to Advance Use of 3D BioChips in Pharmaceutical and ... - Morningstar - May 5th, 2024
- Time to leverage intellectual property to drive innovation in seed and biotechnology sectors: Experts - The Times of India - May 5th, 2024
- Vir Biotechnology to Participate in the BofA Securities Healthcare Conference 2024 - Business Wire - May 5th, 2024
- WuXi Biologics withdraws from 2024 BIO convention amid worsening geopolitical tensions - FiercePharma - May 5th, 2024
- Boston Micro Fabrication Launches BMF Biotechnology Inc. to Advance Use of 3D BioChips in Pharmaceutical and ... - Business Wire - May 5th, 2024
- U.S. Biotechnology Market Size to Increase USD 1.79 Trillion by 2033 - BioSpace - April 16th, 2024
- 6 biotechnology universities in the USA developing young talent - Labiotech.eu - April 16th, 2024
- Lee Hsien Loong presided over efforts to retool Singapore's export-driven economy by focusing on advanced ... - NBC Right Now - April 16th, 2024
- UNITY Biotechnology, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results and Business Updates - GlobeNewswire - April 16th, 2024
- Lee Hsien Loong presided over efforts to retool Singapore's export-driven economy by focusing on advanced ... - pdclarion.com - April 16th, 2024
- BIO's top lobbyist heads out the door - FiercePharma - April 16th, 2024
- BIO's top lobbyist exits, signaling reorganization - STAT - STAT - April 16th, 2024
- Biotech Rebound Could Boost This ETF - ETF Trends - April 16th, 2024
- US National Security, China and Biotechnology in 2024 - BioSpace - April 8th, 2024
- How to Invest in Biotechnology (Updated 2024) - Nasdaq - April 8th, 2024
- Self-pigmenting textiles grown from cellulose-producing bacteria with engineered tyrosinase expression - Nature.com - April 8th, 2024
- Genetically encoding colors and images into bioengineered microbial materials - Nature.com - April 8th, 2024
- Ambition and urgency: Biotechnology and Biomanufacturing in the EU - EURACTIV - April 8th, 2024
- Scientists create plastic-free vegan leather that dyes itself, grown from bacteria - Phys.org - April 8th, 2024
- For national security, the U.S. must maintain its biotech dominance - STAT - April 8th, 2024
- LLY, REGN, BHVN: Which Biotech Stock Offers the Most Upside? - Yahoo Finance - April 8th, 2024
- Is biotechnology a good career? Here are the pros and cons - Labiotech.eu - March 18th, 2024
- Saving Biology With Blue Biotechnology - The Maritime Executive - March 18th, 2024
- 30 Biggest Biotechnology Companies in the World - Yahoo Finance - March 18th, 2024
- WuXi out of biotech trade group, U.S. and China relations to blame - STAT - March 18th, 2024
- Can Biotechnology Save the Fashion Industry? - EARTH.ORG - March 18th, 2024
- Huber high-precision temperature control solutions for the pharmaceutical industry and biotechnology - Labmate Online - March 18th, 2024
- The twelve hottest biotech companies in the Boston area - Labiotech.eu - March 18th, 2024
- Vancouver readies for its position as a global pharma capital as B.C.'s biotech boom takes off - The Globe and Mail - March 10th, 2024
- Here's Why We're A Bit Worried About Unity Biotechnology's (NASDAQ:UBX) Cash Burn Situation - Simply Wall St - March 10th, 2024
- The Top 25 Biotechnology Companies of 2024 - The Healthcare Technology Report. - March 10th, 2024
- Near-cognate tRNAs increase the efficiency and precision of pseudouridine-mediated readthrough of premature ... - Nature.com - March 10th, 2024
- MAIA Biotechnology and Nationwide Children's Hospital Announce Presentation of THIO's Potency in Pediatric Brain ... - Business Wire - March 10th, 2024
- Global Pharmaceuticals and Biotechnology Distribution Deals Analysis Report and Directory 2024: Breakdown of ... - PR Newswire - March 10th, 2024
- Pharmaceuticals and Biotechnology Co-promotion and Co-marketing Partnering Trends Report 2024: Analysis of ... - PR Newswire - March 10th, 2024
- INTERNATIONAL BIOTECHNOLOGY TRUST has a healthy attitude towards paying investors - This is Money - March 10th, 2024
- Where Does Capricor Therapeutics Inc (CAPR) Stock Fall in the Biotechnology Field After It Has Risen 24.73% This Week? - InvestorsObserver - March 10th, 2024
- Biotechnology should be high on the agenda at the Munich Security Conference - The Hill - February 18th, 2024
- Boston is best in the world at biotech. Beijing wants to do it better - WBUR News - February 18th, 2024
- Multiomics Are The Next Step In Biotechnology - Securities.io - February 18th, 2024
- SPARKing academic technologies across the valley of death - Nature.com - February 18th, 2024
- Is Nurix Therapeutics Inc (NRIX) Stock at the Top of the Biotechnology Industry? - InvestorsObserver - February 18th, 2024
- Addressing the Threat to U.S. Biotechnology: Concerns Over Genetic Data Security - Medriva - February 18th, 2024
- Where Does SpringWorks Therapeutics Inc (SWTX) Stock Fall in the Biotechnology Field After It Has Gained 12.41% This Week? - InvestorsObserver - February 18th, 2024
- Should Biotechnology Stock Axsome Therapeutics Inc (AXSM) Be in Your Portfolio Wednesday? - InvestorsObserver - February 18th, 2024
- Where Does Candel Therapeutics Inc (CADL) Stock Fall in the Biotechnology Field After It Has Gained 22.38% This Week? - InvestorsObserver - February 18th, 2024
- Is Tempest Therapeutics Inc (TPST) a Leader in the Biotechnology Industry? - InvestorsObserver - February 18th, 2024
- Is Immunome Inc (IMNM) a Good Buy in the Biotechnology Industry? - InvestorsObserver - February 18th, 2024
- Is Larimar Therapeutics Inc (LRMR) a Leader in the Biotechnology Industry? - InvestorsObserver - February 18th, 2024
- US lawmakers, visiting Cambridge, warn of a rising Chinese threat to US biotech - The Boston Globe - February 18th, 2024
- Should Biotechnology Stock Viking Therapeutics Inc (VKTX) Be in Your Portfolio Monday? - InvestorsObserver - February 18th, 2024
- How the push to limit Chinese biotech could threaten U.S. edge - Axios - February 18th, 2024
- What is Biotechnology? Types and Applications - Iberdrola - January 25th, 2024
- BioAro Inc to Host Inaugural Longevity Innovation Forum in Dubai, UAE - Yahoo Finance - January 25th, 2024
- Is Akebia Therapeutics Inc (AKBA) a Bad Choice in Biotechnology Wednesday? - InvestorsObserver - January 25th, 2024
- Agricultural Biotechnology Market Projected to Reach USD 64.7 billion, with Advancing CAGR of 9.5% by 2031 ... - Yahoo Finance - January 25th, 2024
- Where Does Immunitybio Inc (IBRX) Stock Fall in the Biotechnology Field After It Is Lower By -9.32% This Week? - InvestorsObserver - January 25th, 2024
- Is Lyra Therapeutics Inc (LYRA) Stock at the Top of the Biotechnology Industry? - InvestorsObserver - January 25th, 2024
- ZWI Therapeutics Announces Closing of $10M Series A Financing - FinSMEs - January 25th, 2024
- Breaking Barriers: Tiamat Sciences Shatters Norms with All-Female Executive Team - Yahoo Finance - January 25th, 2024
- Can Sana Biotechnology Inc (SANA) Stock Rise to the Top of Healthcare Sector Monday? - InvestorsObserver - January 25th, 2024
- Is Cabaletta Bio Inc (CABA) a Leader in the Biotechnology Industry? - InvestorsObserver - January 25th, 2024
- Should You Buy Sana Biotechnology Inc (SANA) Stock After it Has Fallen 15.41% in a Week? - InvestorsObserver - January 25th, 2024
- Why Investors and Media are Calling Biotech Showcase The Place to Be to Start the Year - Business Wire - January 25th, 2024
- Is IGC Pharma Inc (IGC) Stock at the Top of the Biotechnology Industry? - InvestorsObserver - January 25th, 2024
- Is Summit Therapeutics Inc (SMMT) a Leader in the Biotechnology Industry? - InvestorsObserver - January 25th, 2024
- Biotech Stocks: The Top 5 To Watch As Shares Trend Down - Investor's Business Daily - January 25th, 2024
- Where Does Tscan Therapeutics Inc (TCRX) Stock Fall in the Biotechnology Field After It Is Lower By -9.81% This Week? - InvestorsObserver - January 25th, 2024
- HRMY: Are These 3 Biotech Stocks Worth Buying? - StockNews.com - January 25th, 2024
- Global Preparative Chromatography Market is projected to reach US$ 2,139.4 Million by 2034 Amid Growing ... - Yahoo Finance - January 25th, 2024
- Is Immunome Inc (IMNM) a Leader in the Biotechnology Industry? - InvestorsObserver - January 25th, 2024
- Should Biotechnology Stock Mink Therapeutics Inc (INKT) Be in Your Portfolio Monday? - InvestorsObserver - May 9th, 2023
- Where Does Ambrx Biopharma Inc - ADR (AMAM) Stock Fall in the Biotechnology Field After It Has Risen 22.18% This Week? - InvestorsObserver - May 9th, 2023
- Should Biotechnology Stock Dermata Therapeutics Inc (DRMA) Be in Your Portfolio Thursday? - InvestorsObserver - May 9th, 2023
- Should Biotechnology Stock Tempest Therapeutics Inc (TPST) Be in Your Portfolio Wednesday? - InvestorsObserver - May 9th, 2023
- Biotechnology - Applications of biotechnology | Britannica - May 1st, 2023