Industry Expertise
Deiya Pernas, our co-founder, brings extensive experience as a former Deputy Chief Investment Officer of a 3.5 Billion-dollar investment firm.
Consistent Outperformance
Our portfolio’s performance has consistently exceeded market averages since our inception in 2018.
Investing Alongside You
We’ve put our own money into the very same stocks we share, tangibly aligning our interests with yours.
Actionable Stock Research to your inbox.
We identify stocks that fit into one of three categories:
Frequently Asked Questions
Our track record is comprehensive and reflects all calls we got right and wrong. There will never be any cherry-picking of time windows, stock ideas, or any other charlatan tactics.
Pernas Research is founded on common sense, accountability, and transparency. And as a result, every single brick our business is built upon reflects a genuine desire to tangibly align our interest with our subscribers.
This is why we only communicate ideas that we would own ourselves. We’ve put our own money into the very same stocks we share and retain an unaffiliated third party to calculate and verify our performance on a quarterly basis.
We seek to identify attractively priced companies that fit into one of two categories:
We believe that a portfolio structured with seven to twelve of these investments will compound at rates substantially greater than the market. These are the Core Ideas we publish research on to our subscribers.
Either value or growth stocks and ones weighted towards mid-cap and small-cap although we do not exclude large caps. Regionally speaking, we exclusively focus on developed countries and are heavily weighted towards the U.S. (~80% weight).
Our typical subscriber to our research has sufficient knowledge and experience to be able to evaluate risks when making their own investment decisions. Our reader base tilts heavily towards those that identify as experienced investors as opposed to traders or speculators.
In a complex and technologically dynamic world, the future of most firms can look very different from their past. We stay away from companies where we cannot reliably anticipate their forward-looking profit picture. For those companies where we can anticipate this, we use our investigative and analytical skill to unearth every possible source of high-signal information.
This involves understanding both the quantitative and the qualitative:
Quantitative (not limited to):
Qualitative (not limited to):
Once we have enough of an understanding of the company’s future, we begin to construct “forward-looking” financials that we then use to calculate a company’s intrinsic value. The best analysts ask all the right questions and have a resistance to well-sounding answers.
From a process we call “Iterative Pruning.” We are biased towards screens that have a high degree of turnover but here are a few of the screens we run: 52-week lows, decreasing debt levels, special dividends, declining revenue, increasing revenue, a high D&A-to-Capex ratio, and low EV/EBITDA. In addition, depending on the current flow of fear-based narratives, we often find ourselves taking a fresh look at subsectors that experience rapid selloffs.
After each screen, we are left with roughly 50 names which we spend 20-30 minutes researching and do our best to justifiably eliminate as many as we can. After the first round of elimination, this leaves us with roughly 25 names and we go through the list again but now increase our time spent on each name to roughly an hour and again prune the list further. We keep doing this until we are left with one or two names that we greenlight for a much deeper dive. (It is not uncommon for us to pass on the entire list of names).
We value idea-quality over idea-quantity and have intentionally structured our communications to be light on subscribers’ inbox. Subscribers to our research can expect to receive roughly 70 pieces of communication via email annually, which averages to a little over 1 email a week.
Here is what to expect:
We intend to charge for our research towards the end of this year. Since we are still a new company and fine-tuning our research communication and product-market fit, we decided to give all subscribers an extended trial period.
Yes, 100% independent. On more than one occasion, a company has reached out to us to inquire if we would be open to accepting payment to publish favorable research on their company. Even if this were a company that we liked enough to own, our answer is of course, “No, thank you,” because it would create a conflict of interest with our subscribers.
We do not manage outside capital. Pernas Research LLC manages assets in the Pernas Portfolio which is not open to outside investment.
To be the gold standard for a trusted research provider in the financial industry and to be respected as an organization that is unbelievably good at what they do.