Ned Davis (analyst)

Nathan E. "Ned" Davis (born 1945/1946, Nashville), is an American financial analyst, finance author, and co-founder of the Ned Davis Research Group (NDRG), a data-driven investment research company based in Venice, Florida.[1][3][4]

For persons of a similar name, see Ned Davis.
Nathan E. Davis
Born1945/1946 (age 74–75)[1][2]
Nashville, U.S.
NationalityAmerican
Alma materUniversity of North Carolina at Chapel Hill
OccupationFinancial analyst
Known forTechnical analysis of long-term data series[1][2]

Early life and career

Davis was born in Nashville, went to school at the University School of Nashville graduating in 1963,[5] and did his undergraduate degree at the University of North Carolina at Chapel Hill, majoring in French.[1]

He dropped out of Harvard Business School as he found he was more interested in finance and investment than management, and returned to Nashville to spend 12 years working at the regional investment bank, J.C. Bradford & Co.[1] At J.C. Bradford, Davis met Ed Mendel, and the two became interested in the idea of using computers to analyze investment data, however, their request in 1979 to the company for USD 30,000 to buy a mainframe computer was declined.[3] At the time, Davis was a partner in the firm, and his investment views were covered nationally in publications such as The Washington Post.[6]

Ned Davis Research (1980–)

In 1980, Davis and Mendel co-founded the Ned Davis Research Group (NDRG) in Venice, Florida starting with 5 employees, to focus on computer data analysis driven investment research and advice for trading firms.[3] Davis focused on the analysis, and Mendel focused on the business model and business management.[3] In 2011, NDRG was sold to the global financial publishing company Euromoney for circa 173 million;[4] Davis remained with the company after the transaction.[1][7] As well as its Venice headquarters, NDRG had branches in Atlanta, Boston, San Francisco, and London, with over 1,000 global institutional investment clients, including Fidelity Investments and the Charles Schwab Corporation.[1]

Davis (and NDRG), is a frequent contributor to the Wall Street Journal,[8] Financial Times,[9] Bloomberg News,[10] CNBC,[11] Barron's,[12][13] and other financial pubications.[14][15] Their quantatitive and technical research on various long-term data series in markets is used as reference in publications such as The Encyclopedia Of Technical Market Indicators,[16] as well as in their own publications.[17]

In April 2013, finance author Barry Ritholtz said, "Ned Davis may be the single most highly respected Technical Analyst working today",[2] and interviewed Davis for the Bloomberg: Masters in Business (MiB) series, where Davis said: "We are in the business of making mistakes. The only difference between the winners and the losers is that the winners make small mistakes, while the losers make big mistakes".[18]

Davis has been described as a follower of contrarian investing, who warns against situations of very strong consensus or herd mentality.[4]

Published works

Davis has published a number of books on finance, which have been re-published in subsequent editions:[19]

  • Davis, Nathan E. (April 2003). Beware of the Crowd at Extremes: The Importance of Contrary Opinion in the Stock Market. Ned Davis Research. ISBN 978-0970265135.
  • Davis, Ned (November 2003). The Triumph of Contrarian Investing: Crowds, Manias, and Beating the Market by Going Against the Grain (1st ed.). McGraw Hill. ISBN 978-0071432405.
  • Davis, Ned (April 2005). Markets in Motion (3rd ed.). Wiley. ISBN 978-0471732815.
  • Davis, Ned (December 2014). Being Right or Making Money (3rd ed.). Wiley. ISBN 978-1118992067.

See also

References
  1. D'Souza, Tony (3 February 2015). "Ned Davis Sells Stock Market Research Company". Sarasota Magazine. Retrieved 22 January 2021.
  2. Ritholtz, Barry (18 April 2013). "Interview: Ned Davis, NDR". The Big Picture. Retrieved 22 January 2021.
  3. Ritholtz, Barry (23 January 2018). "When Computers Met Finance". Bloomberg News. Retrieved 22 January 2021. It was the 1970s. Charts and analysis were done by hand. Then Ed Mendel and Ned Davis tried something new.
  4. Stiff, Peter (21 June 2011). "Big Shot: Ned Davis". The Times. Retrieved 23 January 2021.
  5. "Ned Davis: Alumnus Celebrates School's Lasting Impact on His Life". University School of Nashville Alumni. Retrieved 22 January 2021.
  6. "A Prediction of Market Havoc". The Washington Post. 3 March 1980. Retrieved 22 January 2021. Well, hang on to your hats, folks, because that's the way it looks to Ned Davis, 34, the well-respected partner and market-timing expert of J.C. Bradford, a brokerage firm based in Nashville. Davis, who boasts a large institutional following, is not a man to be taken lightly.
  7. "Euromoney purchases a majority stake of Ned Davis Research". Integrity Research Associates. 23 June 2011. Retrieved 22 January 2021.
  8. Browning, E.S. (1 August 2000). "Election Years Past May Tell If Stocks Will Be Winners". Wall Street Journal. Retrieved 22 January 2021.
  9. Auters, John (26 August 2015). "US approaches a true bear market". Financial Times. Retrieved 22 January 2021.
  10. Wang, Lu (23 June 2020). "Bubble Warnings Get Louder With Nasdaq Erasing Huge Monday Rally". Bloomberg News. Retrieved 22 January 2021. Fifty-year Wall Street veteran Ned Davis added his venerable voice to the chorus of worriers, citing the speed of the index’s advance -- before today -- and surging share volume.
  11. Imbert, Fred (10 April 2019). "Ned Davis Research founder says 'algos' have ruined day trading". CNBC.
  12. Rescigno, Richard (13 December 2014). "Interview with Ned Davis: Time to Brace for a 20% Correction". Barron's. Retrieved 22 January 2021.
  13. Ward, Sandra (16 June 2003). "Interview with Ned Davis: Bear's Pause". Barron's. Retrieved 22 January 2021.
  14. Fox, Matthew (26 December 2020). "Insiders cash out via IPOs as investor optimism becomes excessive, NDR says". Business Insider. Retrieved 22 January 2021.
  15. Nagarajan, Shalini (6 August 2020). "NED DAVIS RESEARCH: A Wall Street strategist says the Nasdaq is 'extremely overvalued' after hitting a fresh-record high, and says that's 'not a healthy situation'". Business Insider. Retrieved 22 January 2021.
  16. Colby, Robert; Mayers, Thomas (1988). "5: Ned Davis On Investment Timing Models". The Encyclopedia Of Technical Market Indicators. Dow-Jones Irwin, University of MIchigan. pp. 14–25. ISBN 9781556230493.
  17. Davis, Ned (April 2005). Markets in Motion. Wiley. ISBN 978-0471732815.
  18. Ritholtz, Barry (20 June 2017). "MiB: Ned Davis on Risk Management and Mistakes". The Big Picture. Retrieved 22 January 2021.
  19. Ritholtz, Barry (17 June 2017). "MiB: Ned Davis on Managing Mistakes". The Big Picture. Retrieved 22 January 2021.
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