If pricing securities was
easy, everyone would
agree on the price.
They don't.

Analytics using a level playing field

100,000+ Daily Price Disputes

100,000+ Daily Price Disputes

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Investors disagree on the appropriate end of day price of securities… and sometimes intensely so. Each trading day at Ten12 we see roughly 100,000 disputes between institutional investors on the end of day price of the exact same security. End of day pricing differences exist for all types of securities including common stock of companies in the S&P 500 index; however, the most significant disagreements occur with securities that trade in the Over the Counter market.

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Pricing Vendor Gym

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A fund hiring an independent pricing service is like a person joining a gym. There is no obligation to actually use the service. Asset managers may have an exceptionally good reason not to use their independent vendor's price. Under both SEC rules and GAAP, the asset manager is responsible for accurately pricing the fund. The independent pricing service is not.

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100,000+ Daily Price Disputes
Apples to Oranges Performance Rankings

Apples to Oranges Performance Rankings

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Each of the daily over 100,000 pricing disputes represents one fund outperforming another based solely on how they priced the same security. Traditional comparisons of fund performance based on fund reported NAV are an "Apples to Oranges" comparison as funds outperform other funds simply because they decide to value the same security higher.

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Valuation Fraud

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Fraud is rare but not rare enough. Since the Madoff Ponzi Scheme was uncovered in 2008, the SEC has charged 174 funds with fraud. At a high level, the SEC charges fall into two categories: the value of the securities were inflated or the securities themselves were not actually owned. While ownership fraud still exists, 99% of the alleged losses occurred in funds that the SEC charged with overvaluing securities.

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Valuation Fraud
How can funds intentionally overvalue securities?

(while using a respected accounting firm and a high quality independent pricing vendor)

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New York
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London
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Singapore