AthenaInvest is a Colorado-based investment advisor that follows “Strategy Based Investing,” grouping managers into peer groups and ranking them and their investments toward finding strong stock ideas:
Managers with a well defined strategy and a high degree of conviction rate highly. Stocks held by highly ranked managers with conviction also rate highly. Using this patented approach, AthenaInvest identifies mutual funds and stocks that outperform the market. AthenaInvest solutions include research, recommended lists, portfolio analysis and investment management.
The approach is an alternative to traditional style-grid categorization of equity managers, which AthenaInvest believes “has unintentional yet highly problematic consequences for financial advisors, mutual fund companies, and individual investors alike.”
AthenaInvest manages three Covestor models. The US Equity model takes this approach:
Each month, all stocks in the equity universe are assigned a score. Stocks that receive the highest scores are those held by the top managers with highest levels of conviction. Stocks with the highest scores are then selected for inclusion in the portfolio, stocks are sold when the score drops below a predetermined level.
Current top holdings of the model include Sirius XM Radio (Nasdaq: SIRI), Rite Aid (NYSE: RAD) and Hurco Companies (Nasdaq: HURC).
Satellite radio service provider Sirius XM faces a string of legal challenges. Last week it was its star performer Howard Stern:
The production company for the radio personality is suing Sirius XM, claiming the satellite radio company has refused to pay stock awards it owes to him based on subscriber targets in Stern’s contract. The lawsuit also says Sirius owes money to Stern’s agent under a consulting agreement.
“World-renowned radio personality Howard Stern (“Stern”) put Sirius on the map,” the lawsuit says. “But, with the exception of a stock award that Sirius paid for the initial year of Stem’s contract, Sirius has refused to pay One Twelve [the production company for Stern’s show] the additional performance-based stock awards to which One Twelve is entitled.”
Here’s the actual lawsuit (.pdf). And this week:
a U.S. District judge has ruled that the company must face class-action lawsuit related to antitrust violation. The case was filed in 2009 by a group of SIRIUS XM subscribers, who claimed that the company is abusing its monopoly power by raising prices to nearly 30%. SIRIUS XM was formed in 2008 after a merger between the two arch rivals, Sirius Satellite Radio Inc. and XM Satellite Holdings Inc. The lawsuit is primarily related to music royalty fees that SIRIUS XM is charging from July 2008, in addition to subscription fees.
But the stock has been on a roll over the past year – chart via Google Finance:
Sources:
“Howard Stern Sues Sirius XM” Deal Journal, Wall St. Journal, 3/22/11
https://blogs.wsj.com/deals/2011/03/22/howard-stern-sues-sirius-xm/
“More Trouble for Sirius XM” Zacks Equity Research, 3/30/11
