Founder Evidente. Top rated quantitative analyst, Evidente

Sam Ferraro

Founder Evidente. Top rated quantitative analyst

Evidente

Evidente is an independent financial education firm that delivers innovative financial advice to wholesale investors, including active long only funds, hedge funds, pension funds, and sovereign wealth funds, in Australia and globally.  Drawing on academic research in asset pricing, behavioural finance and portfolio construction, Evidente provides wholesale investors with commercial solutions to stock selection and asset allocation decisions across equities and other asset classes.

Equity Bottom-Up

iShares MSCI Australia / Equity Bottom-Up

<p>Much hinges on Woolworths&rsquo; investor strategy day on Wednesday, in light of the stock&rsquo;s poor performance in recent months. In an open letter penned to the Woolworths CEO, I show that a material deterioration in the company&rsquo;s profitability prospects has coincided with the roll-out of Masters stores in 2011. With the expansion into home improvement, Woolworths has bucked the global trend towards corporate focus. Firms are increasingly demerging or selling off non-core units and deferring or abandoning growth options to cater to investors&rsquo; insatiable appetite for safe assets and income. I believe that investors will reward Woolworths if Mr O&rsquo;Brien articulates a vision and future for the company that has a renewed focus on its core supermarkets business. I also suggest that the company&rsquo;s structure of remuneration incentives represents best practice and discuss the importance of the company&rsquo;s license to operate in light of the damning evidence of exploitation of migrant workers in Australia&rsquo;s fresh food supply chain aired on the Four Corners program last night.</p>

Much hinges on Woolworths&rsquo; investor strategy day on Wednesday, in light of the stock&rsquo;s poor performance in recent months. In an open letter penned to the Woolworths CEO, I show that a material deterioration in the company&rsquo;s profitability prospects has coincided with the roll-out of Masters stores in 2011. With the expansion into home improvement, Woolworths has bucked the global trend towards corporate focus. Firms are increasingly demerging or selling off non-core units and deferring or abandoning growth options to cater to investors&rsquo; insatiable appetite for safe assets and income. I believe that investors will reward Woolworths if Mr O&rsquo;Brien articulates a vision and future for the company that has a renewed focus on its core supermarkets business. I also suggest that the company&rsquo;s structure of remuneration incentives represents best practice and discuss the importance of the company&rsquo;s license to operate in light of the damning evidence of exploitation of migrant workers in Australia&rsquo;s fresh food supply chain aired on the Four Corners program last night.

An open letter to Woolworths CEO, Grant O'Brien