Corporate History
Charles Biderman founded TrimTabs in Santa Rosa, California in 1990. The company originally focused on providing stock trading ideas to hedge funds. Its first recommendation was the short sale of Midlantic National Bank, which traded in the high $20s in January 1990. Ultimately, Midlantic was taken over at a price of under $10 to save the bank from bankruptcy.
Biderman eventually noticed that no one was tracking money flows into and out of the U.S. stock market on a regular basis. He began searching for real-time data on money flows of all sorts, including corporate buying and selling, mutual fund flows, and changes in margin debt.
Corporate America became a heavy net buyer of stock in late 1994, and inflows into stock mutual funds from individuals began to accelerate in 1995. By that time, Biderman realized that TrimTabs’ specialty of short selling was not working well because of the sheer volume of cash flooding into the U.S. stock market from corporate America and individual investors. In August 1995, he began to analyze U.S. stock market liquidity in what would later become TrimTabs Weekly Liquidity Review. TrimTabs' investment approach is described in detail in TrimTabs Investing: Using Liquidity Theory to Beat the Stock Market (John Wiley & Sons, 2005).
TrimTabs has broadened its offerings in recent years. In 2002, it launched TrimTabs Weekly Macro Analysis, which uses real-time indicators such as income tax collections and online job postings to assess the health of the U.S. economy. In 2005, TrimTabs Asset Management was founded. This subsidiary manages money using an absolute return strategy that applies TrimTabs’ investment insights. In 2006, TrimTabs unveiled TrimTabs Sector Liquidity, which assesses the liquidity of U.S. stock market sectors and sub-sectors. It also launched TrimTabs Global Liquidity Review, which currently tracks liquidity on the London Stock Exchange, the Euronext Paris, the Hong Kong Stock Exchange, and the Toronto Stock Exchange.
On February 11, 2008, Goldman Sachs announced that it had made a minority investment in TrimTabs through its Hudson Street Services business.
Read more about this topic: Trim Tabs Investment Research
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