Cognizant: a court award that was largely missed by the news
Cognizant’s July 29 10-Q carried a court award of about $298 million against Syntel that the company has not booked as a gain. The release, news and analysts missed it, and the call talked up TriZetto without ever mentioning the award.
FTI Consulting: a new line in adjusted earnings
FTI’s July 30 10-Q began excluding a new class of litigation costs from adjusted earnings, tied to its trade-secrets suit against a competitor and former staff. The release and the call mentioned it in passing, and news and analysts missed it entirely.
The signal was in the one place most channels never looked, the filing itself, and it carried both the risk and the opportunity.
What the stocks did next
Measured from the close the day after each filing, Cognizant climbed 19% in its first month against 4% for the S&P 500, and FTI fell 12% through October 8 while the S&P 500 gained 4%. The S&P is not the closest benchmark for this, but even against closer peers, Cognizant edged Accenture over that month and FTI trailed CRA International by 11 points.
Why it worked
Both disclosures were public the moment the 10-Qs hit EDGAR, yet none of the channels most investors read picked them up. This is the gap Increase Alpha is built to identify, one company and one filing at a time.
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For institutional use only. Past performance is not indicative of future results. Not investment advice.
