Event#162tier 1live in productionNew

private placement drift

cadence: Dailydata: mediumshort only
paper
1989
Source
Wruck, K. H. (1989). "Equity Ownership Concentration and Firm Value." Journal of Financial Economics, 23(1), 3-28. Also Hertzel-Lemmon-Linck-Rees 2002 JF.
Read the paper →

What it checks

PIPE financings → distress signal → -23% over 3 years.

Mechanism

PIPEs go to firms that can't tap public markets → 3y -23% mean abnormal return.

No production champion data for this family yet. Stats appear once the discovery pipeline promotes at least one strategy with this family tag.

Signal rule

short between days 90-720 post-PIPE; hold 90/180/365d

Data dependencies

  • sec_form_d_filings

    Worker data table — see services/worker schema.

  • sec_8k_events

    Item-coded 8-K events (1.01 material agreements, 4.02 non-reliance, etc.).

  • daily_prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

Expected edge

Paper alpha
-23% CAR over 3y
Paper window
T+90d to T+720d

Hertzel et al 2002: -23% 3y.

Example tickers where this is likely to fire

Illustrative only — the signal fires based on the live data, not a fixed list.

Related families

Explore private placement drift on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

For informational and educational purposes only. Not financial advice. Learn more