Accellency reposted this
What does higher volatility mean for your investor relations strategy? 👀 New analysis undertaken by Reuters https://lnkd.in/e7ryz94h suggests that listed companies are seeing bigger share price moves on the days of their results. 💡The reasons? First - active management is increasingly dominated by hedge funds with shorter holding periods. Second – more volumes moving off-exchange into dark pools. 📣 We see 5 implications for your IR strategy: 1️⃣ Be prepared for bigger share price moves, whether newsflow is good or bad 2️⃣ Accept that not every share price move can be explained, as visibility declines 3️⃣ Market reactions to results are more unpredictable – pre-earnings positioning matters as much as how you perform vs. consensus 4️⃣ Competition is fierce for investment from long-only active managers 5️⃣ Positively engage with hedge funds – they are ever more important to your share price and liquidity Higher volatility adds to the catalogue of problems faced by listed companies – we look at 8 big challenges ➡ https://lnkd.in/dxybF-Ek A clear equity story which succinctly describes what you do and the main reasons to invest in your business is a powerful way to take control of your narrative and mitigate these challenges. #InvestorRelations #Accuracy #EarningsSeason #FinancialDisclosure #EquityStory
