Investment research

While most investment managers understand the economic fundamentals and market risks of their investments, we compliment their understanding by defining the important legal and regulatory changes necessary for any thorough analysis.

The actions of the policymaking community in Washington – Congress, the Executive Branch, and regulators – can profoundly influence the investment world. We consult investment managers about relevant actions to help them improve their portfolio decisions.

Cypress Advisory has a unique perspective on the legislative and regulatory forces that affect overall financial markets as well as particular sectors. With years of experience both in government and in finance, we help investment managers collect and analyze public policy information to formulate and execute successful trading strategies.

There are many opportunities for policy-driven trading strategies. We identify them, track them, and share them with investment managers. We also work with trading teams to build political risk analytics within the fund.

Because of the inherent strengths of our firm, Cypress Advisory provides research-driven, custom-built information that responds to our clients’ specific needs. We distinguish ourselves in four ways.

1. We maintain direct contacts with both elected and appointed policymakers because of our location and experience in Washington, DC.
   
   
2. Cypress Advisory has built a proprietary model that aggregates political intelligence from many of the top lobbying firms in Washington.
   
   
3. Cypress Advisory provides individualized research to suit each client’s specific needs and challenges.
   
   

Significant to our firm and to our clients is a deep commitment to compliance with applicable securities laws. Cypress Advisory does not share corporate, non-public information or inside information. It is critical that our clients be able to trade without restraint based on our advice and analysis.

Client Studies

EQUITY LONG-SHORT STRATEGY: We track legislative and regulatory changes which may affect the insurance industry, including rebuilding efforts related to Hurricanes Katrina and Rita, Terrorism Risk Insurance, the asbestos legislative debate, and the reform of insurance laws.

EQUITY LONG-SHORT STRATEGY: We source political information regarding agency securities in the current Government Sponsored Enterprises (GSE) legislative debate, with an eye on the impact legislative changes will have on the companies’ future earnings prospects.

FIXED INCOME STRATEGY: We analyze the same GSE information, with a different set of analytics that answers key questions regarding how particular legislation affects credit, debt issuance, and the dynamics of the investment portfolios.

EVENT DRIVEN STRATEGY: We follow merger and acquisition news in Washington, particularly with respect to telecommunications, health care, and the energy sectors. We parse what is relevant and topical for managers regarding specific merger announcements and their related trades.

Other Cypress Advisory Services:

• corporate strategy
  
• Government markets