Who Does The Best Research On Wall Street?

Posted by John Carney, Aug 29, 2008, 1:39pm

New York Times business columnist Joe Nocera is unambiguous about his pick.


Although Lehman has been the number one rated equity research shop (again, according to Institutional Investor), that just shows how flawed such ratings are. Everybody on Wall Street knows that Sanford Bernstein does by far the best equity research on the Street. It tends to hire former industry players like Brad Hintz, who was once Lehman Brothers' chief financial officer, to cover the industries they were once part of. Mr. Hintz; Craig Moffett, the lead telecommunications and cable analyst; Mr. Sacconaghi, who is the technology axe; and a raft of others give Bernstein's research a depth -- an intelligence, really -- that no other firm can match.

So who do you think is the best research shop? We'll take nominations in comments and put up a poll once we have enough suitable candidates.

11Recommend this! 82Comments

Comments

1

Posted by guest, Aug 29, 2008 1:47PM

ISI

2

Posted by guest, Aug 29, 2008 1:49PM

TOGFD

3

Posted by guest, Aug 29, 2008 1:49PM

CLSA for emerging and frontier markets

Stifel for bonds, and a couple of star equity analysts like Barry Bannister.

Credit Suisse for equities

The other bulge brackets are just peddling BS.

4

Posted by guest, Aug 29, 2008 1:54PM

mmmmmmmm I smell a Carnified mayo sandwich

5

Posted by guest, Aug 29, 2008 1:56PM

research is for vaginas

6

Posted by guest, Aug 29, 2008 1:58PM

We just dropped CS from our equity payroll. definitely not CS.

7

Posted by guest, Aug 29, 2008 1:58PM

TGFD

8

Posted by guest, Aug 29, 2008 1:59PM

Bernstein DOES do the best research...but they cant pick a stock to save their lives.

9

Posted by mktmkr, Aug 29, 2008 2:00PM

Who cares? They're usually wrong anyways and if they are right it's probably luck.

10

Posted by mktmkr, Aug 29, 2008 2:00PM

Who cares? They're usually wrong anyways and if they are right it's probably luck.

11

Posted by guest, Aug 29, 2008 2:02PM

mktmkr you obviously dont understand the point of research

12

Posted by guest, Aug 29, 2008 2:02PM

Lehman copies their research reports from all of the best analysts

13

Posted by guest, Aug 29, 2008 2:04PM

PALI CAPITAL

14

Posted by guest, Aug 29, 2008 2:05PM

wikipedia

15

Posted by guest, Aug 29, 2008 2:06PM

ms doesnt mind using wiki

16

Posted by guest, Aug 29, 2008 2:06PM

Long or Short Capital

17

Posted by guest, Aug 29, 2008 2:10PM

when are associate numbers out?

18

Posted by guest, Aug 29, 2008 2:12PM

BB had an article less than two months ago that one of the bulge brackets (either MS/DB/CS -- I can't remember) had the most "accurate" research.

Here is the kicker: the #1, was correct 93 out of 330 calls.

19

Posted by guest, Aug 29, 2008 2:12PM

when are associate numbers out?

20

Posted by guest, Aug 29, 2008 2:13PM

I hate it when I get dropped from the payroll.

--Calgary Schmooze

21

Posted by chad, Aug 29, 2008 2:21PM

less bevin

22

Posted by guest, Aug 29, 2008 2:22PM

The New York Post - that Page Six crap is the real deal.

23

Posted by guest, Aug 29, 2008 2:25PM

Schmooze,

Did you just say what I think you said? Are you taking an after summer vacation?

~SEG

24

Posted by HAM05, Aug 29, 2008 2:29PM

second long or short capital

25

Posted by guest, Aug 29, 2008 2:30PM

Perez Hilton

26

Posted by FUNdamental, Aug 29, 2008 2:32PM

best food challenge research - DealBreaker
Best crop related research - big daddy cayne
Best aviary and ankle grabbing research - Steve Israel.
And best free time research - ms. Callan.

27

Posted by guest, Aug 29, 2008 2:36PM

opco dominates research.

28

Posted by guest, Aug 29, 2008 2:39PM

Agree with #8 - Bernstein does great in-depth research, but they have "paralysis by analysis" - they cannot pick a stock, period. I've had decent luck with Stephens' picks. Mostly I think the big firms (MER, CS, GS, MS) want II analysts, whose main claim to fame is that they call you and talk to you on the phone rather than pick stocks that go up.

29

Posted by guest, Aug 29, 2008 2:46PM

How do you have great research but suck at picking stocks?

30

Posted by guest, Aug 29, 2008 2:47PM

#27 is correct - Whitney straps one on and shows the public how these institutions full of the "best" are humans like the rest, as they hustled and bustled to keep up with the rest of the "best", in a race to build inflated ponzi assets that like to sit and rot on the "best" balance sheets.

31

Posted by EconAnalyst, Aug 29, 2008 2:47PM

Roth Capital

32

Posted by guest, Aug 29, 2008 2:51PM

#29: They have these unbelievable "black books" that give you chapter and verse about an industry - its history, the players, the competition, the technology involved, the margins they can get, the costs to start a plant, etc. etc.

HOWEVER, ask them to pick which of the companies in that industry will go up the most, and they freeze - they give the bull case and bear case and can't see the forest for the trees.

This is kind-of a blanket criticism, but it's generally accurate.

33

Posted by guest, Aug 29, 2008 2:57PM

Lehman is da best

34

Posted by Anal_yst, Aug 29, 2008 3:01PM

I've dealt with Craig Moffet (as well as a number of other Bernstein - dunno if they're all still around actually analysts) and as other have pointed out, those guys definitely know their sh!t solid.

Also as others have alluded to, you don't use research reports to take the Analyst's "pick" as the bible and blindly trade based off that; You use them to learn about the industry/company/etc/etc to help you inform your trades as part of a larger set of research

35

Posted by guest, Aug 29, 2008 3:02PM

third long or short cap.

tmz, onion, john carney, jt marlin -honorable mention.

enjoy the weekend all.

-retail

36

Posted by guest, Aug 29, 2008 3:17PM

JT Marlin does great small cap research. They find companies no other firm knows about

37

Posted by guest, Aug 29, 2008 3:18PM

GA.

38

Posted by guest, Aug 29, 2008 3:19PM

I 2nd Gradient Analytics. It must be good if they're getting sued all the time.

39

Posted by guest, Aug 29, 2008 3:27PM

36 - that is awesome! Jt Marlin apparentlly named their firm so that it sounds like ours....

40

Posted by guest, Aug 29, 2008 3:34PM

Qatalyst Group (Frankie Q, baby)

41

Posted by guest, Aug 29, 2008 3:57PM

Matrix

42

Posted by guest, Aug 29, 2008 4:01PM

ISI

43

Posted by guest, Aug 29, 2008 4:20PM

Macquarie

44

Posted by guest, Aug 29, 2008 4:27PM

@SEG,

No. Just making fun of the initials. Very fortunately I have first and foremost an engineering background, never mind other skills. In this town and current market, that pretty much allows me to pick my hangout.

Have a nice weekend.

--CS

45

Posted by guest, Aug 29, 2008 4:46PM

Bernstein might do great research, but I would not include Hintz on that list. Last summer, when I was still covering financials he came out with a report that basically said the banks are all fine and well capitalized. When asked about banks being on the hook for underwritten loans, he said that he didnt think banks would do that. This coming from the former CFO of lehman

46

Posted by Anal_yst, Aug 29, 2008 4:53PM

@ 45

Methinks you've just hit the nail on the head buddy...

47

Posted by guest, Aug 29, 2008 4:56PM

TOGFD for Asian markets and chicks...especially the chicks.

48

Posted by guest, Aug 29, 2008 5:18PM

Sanford does good work, although the stock picking dropped off when T Franks split for CREF.

49

Posted by guest, Aug 29, 2008 5:24PM

TGFD for chicks and genius.

50

Posted by guest, Aug 29, 2008 6:12PM

Lehman for its supreme awesomeness and proximity to a subway.

51

Posted by guest, Aug 29, 2008 7:11PM

Goldman. The best.

Just remember they are probably trying to fuck you (not in good way).

52

Posted by guest, Aug 29, 2008 7:12PM

Goldman. The best.

Just remember they are probably trying to fuck you (not in good way).

53

Posted by guest, Aug 29, 2008 9:47PM

One time I found an error in Tim Luke's report and emailed him. He was kind of a jackass in his response.

54

Posted by guest, Aug 29, 2008 9:54PM

I'm confused...isn't lehman research just a copy of the Berstein stuff? Or is that only when it comes to Tech research?

55

Posted by guest, Aug 29, 2008 11:17PM


Equities are for sucks. Macro or bust.

56

Posted by guest, Aug 30, 2008 6:05AM

Who reads equity research from the sell side in any case. I have an astounding outstanding track record of 33% returns for the past 12 years with my picks but I'm no fool to be on the sell-side. My risk-adjusted alpha is far superior to what the sell-side pussies can generate. Who reads their crap? And who ranks it. Stick with it I moved over to the buy-side years ago.

So I am,
Yours truly,
HEDGE_FUND_BALLER

57

Posted by guest, Aug 30, 2008 1:00PM

Equity Research = Mayo!!

58

Posted by guest, Aug 30, 2008 2:34PM

HEDGE_FUND_BALLER
You're an idiot, as if not already obvious from your name. Every real buy-side analyst reads sell-side research reports. Not as much for stock-picking, but for gathering information.
The only buy-side "analysts" who don't read sell-side research are those who can't afford access.

59

Posted by guest, Aug 30, 2008 3:22PM

Monkeys, definitely monkeys.

60

Posted by guest, Aug 30, 2008 6:55PM

RJA...regionals are a lot more complete than the Bulge guys

61

Posted by guest, Aug 30, 2008 9:15PM

I am a tech analyst who LOVES Bernstein, although they lose points if you're considering coverage breadth. They write great, thought-provoking, differentiated and intelligent reports, but they don't cover as much as the bulge brackets. Their management access is also a different animal, but then that's not what you asked.

I like Credit Suisse better than Lehman, but I have a great sales rep and I cover Europe too. They both deserve to be in the conversation. I disagree w/ @60 that the regionals are much use in the US, but in Europe I've found them worthwhile because of the regional differences.

DB deserves to be in the conversation too. They do good work globally. MLCO needs to be in the poll, though I'm not voting for them :)

62

Posted by guest, Aug 30, 2008 10:04PM

I love Bear Stearns research. Does anyone know what happened to them?

63

Posted by guest, Aug 31, 2008 2:50AM

MS

64

Posted by guest, Aug 31, 2008 3:29AM

My all time favorite analysts are:
- Mary Meeker
- Jack Grubman
- Henry Blodgett.

Nobody at Lehman or Bernstein can beat them. Thoughts of who the modern day equivalents of them are?

65

Posted by guest, Aug 31, 2008 5:42AM

@64, to find the current equivalent of Mary Meeker, Jack Grubman, and Henry Blodget. You will have to go to Hong Kong. I bet you will even find more than one analyst who would embody all three in one being. Sounds impossible, but come over and see for yourself.

It's still cowboy country here. Take China Mobile for example, it's stock price has fallen from an all time high of HK$160 in October 2007 and it's now at HK$89 a share. I checked the sell-side recommendation on the stock last Friday and guess what? 25 buy, 5 neutral, and 5 sell recommendations!

The moral of the story is CAVEAT EMPTOR. It's a well-taught concept but not well-learnt or applied. All firms want to get i-banking business from firms they cover and take their research with a big grain of salt accordingly. Sell-side analysts have superior access to company managements but the independent analysts have better industry and company insights. Use both and you get a much better picture. But do remember that, YOU make the decision at the end of the day.

66

Posted by guest, Aug 31, 2008 1:28PM

Oh--I'm @61, and JPM should be nominated too. The Bear thing reminded me (not that they kept all the best Bear analysts).

67

Posted by guest, Aug 31, 2008 2:00PM

ISI best macro so far. Kiril sokolov.. and I like citi just because they're very responsive.

nobody keep track of sell-side recommendation, they're there to get info not helping you to pick stock

68

Posted by guest, Aug 31, 2008 8:14PM

what about bond desk research analysts?

69

Posted by guest, Aug 31, 2008 11:58PM

Definitely MS

70

Posted by guest, Sep 01, 2008 7:39AM

BofA research rocks!

71

Posted by guest, Sep 01, 2008 1:06PM

Deutsche should be up there too

MAYO of course, and Lavorgna

72

Posted by guest, Sep 01, 2008 8:47PM

This is a silly question. It's not the shop, it's the analyst, so it depends entirely on what subsector we're talking about.

In large cap food, for instance, I like Eric Katzman at Deutsche. But that doesn't mean DB is good for anything else.

73

Posted by guest, Sep 02, 2008 1:06AM

thanks, eric

74

Posted by guest, Sep 02, 2008 4:07AM

Im not entirely certain that ANY of the best research comes from anywhere near wall street. (with perhaps the vague exception of insider news on failing banks).

75

Posted by guest, Sep 02, 2008 5:15PM

Jefferies.

76

Posted by alexis, Sep 03, 2008 10:08AM

i dont know whether its going to be succesfull. but good luck to them.

------------------------
alexis

Crack Cocaine

77

Posted by guest, Sep 03, 2008 12:11PM

BofA? You must be kidding. They canned all their good analysts at the start of the year.

78

Posted by guest, Sep 04, 2008 1:31PM

Banc of America Securities, enough good ones still there.

79

Posted by guest, Sep 04, 2008 1:33PM

I prefer Jefferies

80

Posted by guest, Sep 04, 2008 1:40PM

Value Line because I hate graphics and having to read more than one page

81

Posted by guest, Sep 04, 2008 6:25PM

Wachovia. Equity research platform still going strong, while BofA lays off analysts left and right.

82

Posted by guest, Sep 04, 2008 6:26PM

Wachovia. Equity research platform still going strong, while BofA lays off analysts left and right.

Post Your Comment