Tue, Oct 25, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Big banks’ cut back on research means opportunity for hedge funds, but more bureaucracy can be difficult for new managers

Wednesday, August 06, 2014

Benedicte Gravrand, Opalesque Geneva for New Managers:

Big investment banks have been cutting back on their risky trading operations in the last five years. They are also, in Europe, cutting back on stock research - which may create opportunities for fund managers. However, as banks are avoiding risk and becoming compliant with tighter regulations, they are converting to a more bureaucratic model and are more difficult to access for new fund managers.

Research on small and mid-cap stocks In Europe, banks and brokerages are scaling back on research on small and mid-sized cap stocks – deemed to be too costly and time-consuming, according to Reuters on Monday.

There are 9,000 listed companies in Europe. Thomson Reuters’ figures show that four in every 10 European tracked stocks have seen a drop in coverage in the last two years. And that Europe’s 30 largest banks cut staff by 80,000 in 2013 – some of them equity analysts.

"If it's shrinking, that research is going to be replaced by independent research firms and hedge funds, which are doing their own deep dive and explicitly investing behind their ideas," Soren Aandahl, head of research at activist investor Glaucus, told Reuters.

The cut in big banks research has created opportunity for ent......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From Thisismoney.co.uk: The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From CNBC.com: Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Marketwatch.com: Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Forbes.com: Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa