(7) Investor Relations International

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Investor Relations International

Sherman Oaks

Business: Hedge fund/Investor relations at

high-growth companies

Founded: 2002

Two-Year Growth Rate: 389%

2008 Revenue: $7.5 million

Chief Executive Haris Tajyar said he is on the lookout for both hot and overhyped companies. The hot ones he represents; the overhyped he likes to sell short. In June, however, the Securities and Exchange Commission filed a civil lawsuit accusing him of making $924,000 in illegal profits in 2005 and 2006 by short selling stock in five companies after receiving tips they were about to make negative announcements. Tajyar denies the insider trading allegations.

Secret to Success? We have a two-pronged strategy. The first is investor relations, which does well when the stock market is rising. The other is a hedge fund that short sells overhyped stocks. It does well in a down market. Also, we look for investor relation clients where we can make a difference, namely companies that I think are undervalued, with top- and bottom-line growth between 30 percent and 40 percent per year, and that have little or no representation on Wall Street.

SEC Allegation? It’s an active case because I refuse to settle. That’s not how we make our money. In fact, I would probably be higher on your list if I wasn’t getting bled by legal fees.

Long-Term Strategy? We follow the growth, and right now China is the growth market. For the next few years, most of the initial public offerings will come out of China. With all my trips to China – two or three every month – I spend more time on airplanes than I do on the ground.

Growth Potential? Four years ago, an investment bank offered to acquire us for a double-digit millions price, but I declined. Like most CEOs, I don’t worry about growth, I just worry about putting out fires.

Los Angeles Forever? We will stay in Los Angeles. Today the world is so virtual, it doesn’t matter where you’re based. What matters is accessibility, and we deliver that 24-7.

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