This blog , ShadowStock was developed to share ideas on the fundamental market inefficiencies that have been uncovered by academia. Our approach starts with what has been called the small firm effect. We believe that the real reason the small company anomaly exists is simply the lack of attention and number of analysts that follow these stocks. What we have is really an ignorance effect. And it's because of the scarcity of information on these tiny companies that our research efforts should pay off. If we were researching stocks already covered by Wall Street or the financial media we would be wasting our time since these companies are more efficiently priced. The cornerstone of our investment style is to search for inefficiencies that exist in companies ignored by institutions and the media.