Transparent Value is a division of

Guggenheim Partners Guggenheim Partners, Inc is a global investment and advisory financial services firm that engages in investment banking, asset management, capital markets services, and insurance services. Guggenheim has c. 2,000 employees. The firm has offices ...

specializing in the management of equity

mutual funds A mutual fund is an investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investmen ...

and separately managed accounts. The firm is headquartered in New York City.

History

Transparent Value was founded in 2003 by Julian Koski and Armen Arus. In May 2009 Guggenheim Partners acquired Transparent Value.

Investment Methodology

Transparent Value developed the Required Business Performance (RBP) Methodology. The methodology uses

fundamental analysis Fundamental analysis, in accounting and finance, is the analysis of a business's financial statements (usually to analyze the business's assets, Liability (financial accounting), liabilities, and earnings); health; Competition, competitors and Ma ...

and elements of

quantitative finance Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling in the financial field. In general, there exist two separate branches of finance that requ ...

to select stocks. Analysts use a reverse

discounted cash flow The discounted cash flow (DCF) analysis, in financial analysis, is a method used to value a security, project, company, or asset, that incorporates the time value of money. Discounted cash flow analysis is widely used in investment finance, re ...

analysis to determine the performance implied by the stock price. This performance is called the Required Business Performance. Using historical performance, analysts then calculate the probability the company will deliver this performance. This probability is called Required Business Performance Probability. The methodology was licensed to

Dow Jones Indexes S&P Dow Jones Indices LLC is a joint venture between S&P Global and the CME Group, that was announced in 2011 and later launched in 2012. It produces, maintains, licenses, and markets stock market indices as benchmarks and as the basis of inve ...

and serves as the basis for the Dow Jones RBP Indexes.

Mutual Funds

Transparent Value currently offers seven mutual funds based on the Dow Jones RBP Style Series, Dow Jones RBP Directional Series and Dow Jones RBP Dividend Series. The first funds were launched in May 2010.

References

{{Reflist

External links

transparentvalue.com

djindexes.com/rbp

dowjonesrbpindexes.com
Financial services companies of the United States Companies based in New York City