President, Vision Research

Robert C Prather Jr

Vision Research LLC (founded in 2011) is an independent equity research firm using fundamental analysis to help investors avoid risk & profit from structurally challenged equities. The research is focused on US & European equities. Primary sectors include consumer, TMT and industrials.  Team background includes 3 CFA Charter holders, 2 Certified Public Accountants, global L/S experience, TMT credit experience, management consulting, software engineer, and long biased international equities.

President

Hargreaves Lansdown (HL/:LN) No Flow, No Go

FTSE 100: Twenty Years of Going Nowhere (Almost)

Lloyds Banking Group (LLOY LN): Growth Who Needs It?

Vision Research

Vision Research was formed in 2004 with the vision of generating the best possible fundamental analysis and investment research for smid cap US equities. In 2008, we broadened our coverage to include mid/large cap US stocks.  After researching a  few ideas outside the US each year for a number of years, we launched a dedicated non-US equity product at the end of 2015.  This was followed by the introduction of a product focused on IPOs in mid-2017.

Fundamental Insight

Equity Bottom-Up

<p>Hargreaves has benefitted from more retail investors trading their personal accounts during COVID and market appreciation.  However, comparisons will become more difficult as 2021 progresses, competitors are offering cheaper trading commissions and introducing new products, and the Co-Founders just sold 300mn pounds of stock (17% of his holdings).  Although shares are trading below historical averages, 20x Fwd EBITDA is a large premium to US publicly traded brokerage peers and M&amp;A multiples in the space.</p>

Hargreaves has benefitted from more retail investors trading their personal accounts during COVID and market appreciation.  However, comparisons will become more difficult as 2021 progresses, competitors are offering cheaper trading commissions and introducing new products, and the Co-Founders just sold 300mn pounds of stock (17% of his holdings).  Although shares are trading below historical averages, 20x Fwd EBITDA is a large premium to US publicly traded brokerage peers and M&amp;A multiples in the space.

Hargreaves Lansdown(HL/ LN):Co-Founders Sells 17% Stake,Difficult Comparisons,Increasing Competition