Why we do it

Why

WHY?

The nature of investments has changed

Sell-side equity research is undergoing an evolution thanks mainly to technology. however  improvement over time but still has key issues which have can affect investment decision quality. This non-exhaustive list is as follows:

  • Too much noise 

  • 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

  • Stricter rules governing corporate access 

  • Consensus forecasts are generic, rely on company guidance, non-responsive to new information.

  • Asset Managers have built their own research capability

  • Traditional sell side research will be replaced or augmented by differentiated alternatives

  • Declining value of traditional sell-side research

  • Regulatory changes to further ‘unbundle’ commissions will force investment managers to pay only for substantive research

  • Data driven analysis assists in making better investment decisions

  • Sell-side research can sometimes miss out on the big picture – stocks don’t exist in a vacuum – the sector and industry performance should also be understood

  • Equity research can be too detailed and not straight to the point – investors have little time to read lengthy reports

The QMG approach is all about addressing these issues and industry changes but in a way that provides benefits to our users.ational accounts to provide its monthly insights.a level just above the individual company) the signals generated each month are hard to ignore.

NEXT >> What we do