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A TenXResearch Manifesto:

I am working on a number of projects which are complementary and hopefully compelling. The strategic goal of this research is to harness opportunity.

There are massive changes in media right now. Milestone events like a huge re acceleration of growth at Live Nation or terrible numbers from The Walt Disney Company, ironically as its theme parks are breaking attendance records, seem disjointed. I think these changes are all connected by technology and adoption rates. Not to be political, even Trump and his media wars are connected to these trends.

Sounds like chaos but there are common cords to this revolution which we identified and will explore. I have said in the past “Experience is King” these papers will focus on how to invest in experience either as business developers or investors.

TenXResearch analysis has a unique DNA, mission driven and like the Sell Side. Great managers with unique perspectives have posted wonderful performance in the past. Just as a young  basketball player like Steph Curry studied the greats of the 80’s and 90’s in high school and college, creating his own basketball vocabulary, investors can be influenced by the Steve Cohen’s, Leon Cooperman’s, George Soros’s and Mario Gabelli’s of finance. These managers that have created enormous value in many ways even outside of finance. These giants added to investment understanding and investors today are well served by understanding sucessful investment process as we employ new technologies and ideas.

It is a new world in research and financial research needs a new look. Now more than ever fundamental research is important. Large managers are probably overpaying for some research and underpaying for other products.

Similar to brand advertising, portfolio managers know some research works but culture, regulations, and data make optimizing research budgets a challenge. In the near future, it will be clear: If a pension fund invests passively in ETFs and ends up having a 10% portfolio weighting in Amazon shares, this institution needs to be doing fundamental research on AMZN shares and debt immediately! In this scenario the passive pension with overweight exposure is like a German bank in 2007 holding CDO’s. There is reaggregation of exposure that is undefined and created by the ETF and the massive passive portfolio. TenXresearch thinks new Tech trends transcend traditional S&P groups which are the source code of many ETFs.

The APTV Media meta trends capture over a Trillion Dollars in market capitalization and influence addressable markets that encompass over 1 billion global households. Clearly ETF’s and Artificial Intelligence systems can not and will not see new trends created by CEO’s. Building new businesses that work in different ways than these businesses did in the past. This understanding cannot be captured by systems with code written months if not years in advance by programmers that have no investment track record like Leon Cooperman. Moreover, if new programs are built with old code which is common, error multiple exponentially.

The source code is important because Robotics and AI are expert systems. Expert systems take the fundamental skills of experts (a safe driver) and translate the skill into code running real world processes like a self driving Tesla. I am not a Luddite, the AI relationship should not be developed as human replacement but developed as symbiotes working together to enhance performance. Like all successful machines from the first sewing machine to the latest F-35 Fighter Jet successful technology creates it does not destroy.

Process is equal to fundamental analysis, data, and consistency.  Great brands are in part based on great process – a McDonalds Filet-O-Fish tastes the same in New York and in New Delhi. In the media ecosystem a revolution is happening today and while Experience is King – Process is Power.

So in the coming days and weeks, I will reach out to people to move these ideas along and I hope to build of network of like-minded forward thinkers dedicated to furthering these ideas first starting with Direct to Consumer, AP TV and Experience Based Technology disruption.

Thanks for reading