“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
– US President John Adams, 1770
We have an innovative approach to equity research because sell side research has not changed.
We see the following as key issues that we address:
- Lack of independence – internal conflicts of interest, analyst subjectivity, inactivity and bias – consensus is becoming fiction
- Experienced analysts have left the field – global spend across investment banks on research resource down 40% since 2008
- Consensus forecasts are generic, rely on company guidance, non-responsive to new information
- Asset Managers have built their own research capability
- Regulatory changes to further ‘unbundle’ commissions will force investment managers to pay only for substantive research
- Traditional sell side research will be replaced or augmented by differentiated alternatives – we are a differentiated alternative.