Dorsey Wright and Associates

In 1987, Tom Dorsey and Watson Wright launched Dorsey, Wright & Associates in Richmond, Virginia. Their goal was to provide financial advisors with investment research rooted in technical analysis, a departure from the fundamental analysis that dominated Wall Street. The firm championed the Point & Figure and Relative Strength methodologies, which focus on price momentum to answer the crucial question of *when* to buy or sell. Dorsey Wright's business was built on selling its data and analysis through a subscription-based platform. They translated their methodologies into actionable insights, providing tools and models for financial professionals to manage portfolios. This approach gained traction, and the firm became a key advisor to investment managers globally. A significant evolution in their business came with the rise of Exchange Traded Funds (ETFs). Dorsey Wright leveraged its expertise to create its own indexes, which it then licensed to ETF providers like Invesco and First Trust. This allowed them to scale their influence and participate more directly in the growth of the asset management industry. By 2015, the firm had established itself as a leader in the growing field of 'smart beta' indexing. This success caught the eye of a major exchange operator. In a defining moment for the company, Nasdaq acquired Dorsey, Wright & Associates for $225 million. The acquisition integrated Dorsey Wright's technical analysis and indexing capabilities into Nasdaq's global offerings, cementing its legacy and expanding its reach.