Mike Arnold
Long only, small-cap, tech, growth at reasonable price

FTI Consulting Looks Fully Valued

Over the last week, I've written a series of columns on publicly-traded management consulting practices. In general, I think this sector is fully valued, and FTI Consulting (NYSE:FCN) is no exception.

In my view, one of the reasons to avoid this sector is that it is highly reactive to the regulatory environment. Many of the service offerings include compliance-related engagements. Stated differently, these clients would not have engaged FTI Consulting or its competitors if it were not for being required to do so. To that end, compliance-oriented management consulting firms operate an extremely event-driven industry. As an investor, I think it is an industry to avoid given it is driven largely by government policy and/or the bad behavior...

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