Definition
Mosaic Theory
An investment research approach that combines multiple pieces of public and non-material information to form investment conclusions.
Mosaic theory is a legal framework that allows analysts to piece together various fragments of public information—each immaterial on its own—to reach a material investment conclusion. This approach is fundamental to legitimate primary research, as it distinguishes legal information gathering from insider trading. For example, combining channel check data, expert opinions, industry trends, and public filings can yield insights not apparent from any single source. Mosaic theory provides the legal foundation for expert network usage when properly applied.