IMPORTANCE OF INSTITUTIONAL INVESTORS
Institutional Investment Firms – such as investment companies, hedge funds, mutual funds, brokerages, insurance companies, pension funds, investment banks and endowment funds – are entities with large amounts to invest.
Institutional investors have a positive effect on the stock prices of the firms in which they invest. This effect materializes through different mechanisms: institutional investors reduce information asymmetries between the firm and other investors, contribute to the liquidity of the company’s stock and improve the firm’s corporate governance.
Public companies that have institutional shareholders are more likely to raise capital for acquisition and expansion within a 1-2 month timeframe.
ROAD SHOWS (Dog-N-Pony)
Barwicki Investor Relations schedules and coordinates road shows.
ALL meetings (road shows) are with institutional investors, brokers and analysts. We do not set up meetings with individual investors.
A typical day consists of 4-5 meetings at the firms' offices…. We DO NOT do lunches, dinners or cocktail parties.
Each meeting usually lasts 1 hour:
Management Presentation for 15 - 20 minutes.
The remaining 40+ minutes is more of a question and answer session.
A road show can be scheduled in any city in the U.S., however, New York City usually is the best place because limited driving to meetings and NYC is the city with the most institutional investors.
Meetings in your home state with institutional investors are well-received because investors do prefer to invest in a company within their state.