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Here Comes the Stock Research Shake-Up

The European Union’s revised Markets in Financial Instruments Directive comes into force on Jan. 3, 2018. Among its core aims is reducing conflicts of interest between investment firms and their clients. In the past a portfolio manager might have received brokerage research for free, but under MiFID II that’s considered an “inducement,” which could sway the manager’s decisions about where to direct order flow. The upshot: Money managers will need to pay for investment research they receive

https://www.bloomberg.com/news/articles/2017-08-11/here-comes-the-stock-research-shake-up

Automate your Excel models with the industry's most accurate financial, market and economic data.

this is going to be huge. It may make the quality of research better and the industry might get stronger. It might destroy the industry. We shall see, based on some of the pricing figured I saw looks like JPM wants market share (maybe thinking research will still lead to sales) as they were priced pretty aggressively compared to Barclays & DB leaked figures

'A flute with no holes, is not a flute. And a donut with no hole, is a danish'

you know what i want? i want to jump from equity research to real estate acquisitions analayst for a real estate PE firm.  Less volatile, tangible asset, and real hard cold cash flows for the owners.

Be yourself. The world worships the original.

I’m looking at doing the same thing. I’m not in ER though. I have a friend who works for a real estate PE firm that I’m trying to get in with… I’m trying to get his managers out to the golf course with me so I can start networking some more. In my opinion, real estate, specifically apartments, is a good place to be. Apartments are going up everywhere because no one wants to live outside the city anymore. Millennials don’t have the money for a house, so they’re going to apartments.

golf? i can do golf.  let me join in your group.  you in the east coast?

Be yourself. The world worships the original.

infinitybenzo wrote:

golf? i can do golf.  let me join in your group.  you in the east coast?

I’m in TN, but wouldn’t mind going to the east coast (around North Carolina).

I’m in real estate PE benzoid and I’m richer than you. Don’t you wish you weee me 

AbrahamIsaac wrote:

I’m in real estate PE benzoid and I’m richer than you. Don’t you wish you weee me 

oh yeah you and your 900k all paid cash fancy pad of yours!! your net worth including your home is 1.4mm and you boasted that you are in the top 0.1%? 

nah, I’ll pass on that…..the down payment on my apartment in UWS alone is greater than your entire life savings….But keep at it champ!!

Be yourself. The world worships the original.

just moved to a RE PE shop and there is some money to be made. Everyone is at the opinion we are late cycle currently and awaiting a big downturn (which if your firm can withstand the pain you will make a killing on depressed asset prices followed by a bounce back and strong growth opportunities)

'A flute with no holes, is not a flute. And a donut with no hole, is a danish'

infinitybenzo wrote:

oh yeah you and your 900k all paid cash fancy pad of yours!! your net worth including your home is 1.4mm and you boasted that you are in the top 0.1%? 

nah, I’ll pass on that…..the down payment on my apartment in UWS alone is greater than your entire life savings….But keep at it champ!!

You in the UWS as well? Im in the 90’s, its ok.

'A flute with no holes, is not a flute. And a donut with no hole, is a danish'

Yayyywork wrote:

infinitybenzo wrote:

oh yeah you and your 900k all paid cash fancy pad of yours!! your net worth including your home is 1.4mm and you boasted that you are in the top 0.1%? 

nah, I’ll pass on that…..the down payment on my apartment in UWS alone is greater than your entire life savings….But keep at it champ!!

You in the UWS as well? Im in the 90’s, its ok.

yeah i’m in the 60s. walk down to take b/d train everyday.

Be yourself. The world worships the original.

Benzoid it must be nice when your parents made the down payment for you 

the only thing keeping me down is not having wealthy parents. i calculated that if i had wealthy parents and all the priivlages of wealth/education/connections i would be worth many millions

"You want a quote? Haven’t I written enough already???"

RIP

AbrahamIsaac wrote:

Benzoid it must be nice when your parents made the down payment for you 

sure whatever makes you feel better champ

Be yourself. The world worships the original.

I know how Chinese parents work fool 

AbrahamIsaac wrote:

I know how Chinese parents work fool 

here comes the generalizing bigot Know It All None!! lmao….

Be yourself. The world worships the original.

Bla bla excuses.

Anyway, about this MiFID thing - I can’t imagine how more rules and a more explicit fee structure would be conducive to industry growth. Fear of exorbitant future fines for even minor infractions tends to make financial firms less aggressive when new rules are introduced. Changes in the way firms are mandated to do business also makes future revenue less certain. This will make companies less willing to commit capital to equity research businesses until the effect of the new rules becomes clearer.

Even if research becomes more objective due to fewer conflicts of interests, I don’t know if clients will notice any difference, if they will even care, or if the difference makes the research conclusions more accurate.

“The aliens on Mars cloned Hillary Clinton.” - Turd Furgeson

"You want a quote? Haven’t I written enough already???"

RIP

igor555 wrote:

http://news.efinancialcareers.com/uk-en/292596/im-equity-researcher-some...

I got beat out for a job at a small hedge fund by 2 people who were willing to work for free. Good analyst aren’t free and free analyst aren’t good!

We’re gonna win so much, you may even get tired of winning. And you’ll say, 'Please, please. It’s too much winning. We can’t take it anymore. Mr. President, it’s too much.' And I’ll say, 'No, it isn’t!' We have to keep winning!

hpracing007 wrote:

igor555 wrote:

http://news.efinancialcareers.com/uk-en/292596/im-equity-researcher-some...

I got beat out for a job at a small hedge fund by 2 people who were willing to work for free. Good analyst aren’t free and free analyst aren’t good!

lol at a hedge fund?? that’s really hard to believe but if you say so.  Usually the owner or partners have multi millionaires if not billionaires……Are you in NYC…I want to ask about this shady ass fund to our know it all thundercat CFO.

Be yourself. The world worships the original.

100% serious, I don’t b.s. about job stuff on here. That was the reply I got after I spent a week preparing 2 investment ideas for them, one in my sector and one outside (2 full models and 2 2-3 page summaries) and pitching it to them. Very small non-NYC based fund, you probably haven’t heard of them.

We’re gonna win so much, you may even get tired of winning. And you’ll say, 'Please, please. It’s too much winning. We can’t take it anymore. Mr. President, it’s too much.' And I’ll say, 'No, it isn’t!' We have to keep winning!

hpracing007 wrote:

100% serious, I don’t b.s. about job stuff on here. That was the reply I got after I spent a week preparing 2 investment ideas for them, one in my sector and one outside (2 full models and 2 2-3 page summaries) and pitching it to them. Very small non-NYC based fund, you probably haven’t heard of them.

wow that is ridiculous.  Did they tell about the pay issue beforehand? 

Can’t believe they are managing institutional money and expect to operate at minimal costs.  They probably ask you to use google finance for research related and seekingalpha for up to date news

Be yourself. The world worships the original.

infinitybenzo wrote:

wow that is ridiculous.  Did they tell about the pay issue beforehand? 

Can’t believe they are managing institutional money and expect to operate at minimal costs.  They probably ask you to use google finance for research related and seekingalpha for up to date news

No pay was talked about beforehand but one of the associate there told me how much he was making (definitely below market with his resume, which was much better than mine).

Funny that you mention free tools and research. I met the associate at a conference and he convinced me to help their firm get on our bank’s research distribution list. Said their firm was very young and while they can’t pay now, they will be able to latter (never heard that before in my life but I told that to a sales and trading guy and they got put on the list). After I got laid off, I gave them a call, which lead to the interview.

We’re gonna win so much, you may even get tired of winning. And you’ll say, 'Please, please. It’s too much winning. We can’t take it anymore. Mr. President, it’s too much.' And I’ll say, 'No, it isn’t!' We have to keep winning!