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Home > Financial Services > Stock Brokers > First Wilshire Securities Management, Inc.
First Wilshire Securities Management, Inc.
First Wilshire Securities Management is a member of NASD, the National Association of Securities Dealers. NASD is a self regulatory organization of the securities industry responsible for the operation and regulation of the NASDQ stock market and over the counter markets. It also administrates exams for the investments professionals, such as the series of 7 exams.
For over twenty five years, First Wilshire has performed in depth, internally generated fundamental research in its search for undiscovered equities. This leads them primarily to small and micro capitalization companies where research is very inefficient, providing a tremendous opportunity to find undervalued stocks. First Wilshire has remained a value investor throughout all market environments and is an initiator rather than a follower. Their top four investment professionals have been with First Wilshire for a combined 50 years.
The companies specialize in the management of equities, concentrating in the area of Small and Micro Capitalization companies. Small Cap generally means a security with a market capitalization of less than $1 billion. Micro Cap is generally considered to be all stocks with market capitalization as high as $500 million. Occasionally, they may take positions in larger companies when valuations are compelling and sentiment is negative.
Most financial professionals agree that modern investment planning requires diversification between the various types of asset classes available. In Depth Research Can Make the Difference because large investment firms cannot invest in smaller companies, they are often the first analyst to visit in many years. Management of small companies is far more accessible and analysts typically have good rapport with top management. Due to the Investment Manager's experience in small cap stocks, they are able to help companies in ways to enhance shareholder value.
This Company makes good execution of trades imperative. Results can be impacted negatively by the cost of transactions. This problem of limited liquidity in most Small Cap stocks makes it difficult to buy or sell and often creates higher spreads. They try to offset this issue by using two different but complementary approaches. The keep turnover low, usually less than 50percent annually, and by working closely with various market makers in these stocks they can usually reduce the impact of these spreads. They patiently accumulate or distribute a large position in a stock in order to avoid unduly disturbing the price. This illustrates one of the ways they manage portfolios to serve their clients best.
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