{"id":5614,"date":"2007-01-31T00:00:00","date_gmt":"2007-01-31T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"study-shows-hedge-funds-want-more-individualized-research-products","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/01\/2007\/study-shows-hedge-funds-want-more-individualized-research-products.html","title":{"rendered":"Study Shows Hedge Funds Want More Individualized Research Products"},"content":{"rendered":"

HedgeCo.Net (New York) –<\/span> Institutional money managers and hedge funds are paying more for individualized research products and services from Wall Street, according to a newsurvey. Instead of the \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201ctraditional\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d buy\/sell\/hold research reports from analysts, hedge fund investors are looking for a more personalised touch.<\/p>\n

Cogent Consulting LLC announced that a recent review of its clients, which manage a total of more than $3 trillion in hedge fund assets, show  that firms are compensating broker dealers and other third party research providers for services that are more focused on particular investment strategies or portfolios.<\/p>\n

The strategies that are gaining popularity with hedge fund investors include;<\/p>\n

    \n
  1. Meetings – Arranged by an analyst or institutional salesperson between a company\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s management and a buyside investor. <\/li>\n
  2. Trade Ideas \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 Specific long or short stock recommendations created by institutional brokers and sent to buyside investors describing when to buy and sell and how much to invest. <\/li>\n
  3. Expert Networks \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 Connect investors with experts in industries of direct interest to them. <\/li>\n
  4. Analyst Telephone Calls and Emails \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 Where analysts provide further insight to company or industry developments or trends. <\/li>\n
  5. Custom Research \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 Buyside firms enlist a broker dealer or independent research provider to conduct specific research projects. <\/li>\n
  6. Investor Conferences \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 Traditional types of conferences where company managements make presentations and where investors can hold 1-on-1 meetings with a variety of companies, at one location. <\/li>\n<\/ol>\n

    Cogent\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s ResearchTrak\u00c3\u00a2\u00e2\u20ac\u017e\u00c2\u00a2 or HedgeTrak\u00c3\u00a2\u00e2\u20ac\u017e\u00c2\u00a2 technology is used by many of the largest institutions and hedge funds in the US and UK to conduct quarterly \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cbroker reviews.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d The results of these reviews are employed to help decide on compensation paid to sellside firms and third parties for research. This compensation is typically in the form of \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201csoft dollars\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d (trading commissions above those paid solely for execution), specifically designated \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cresearch commissions\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d, or commission sharing arrangements (CSAs). The survey found that on average, Cogent\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s clients allocate more than 50% of their commissions for the payment of research products and special research-related services.<\/p>\n

    \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThe buyside appears to have redefined Wall Street research,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d said Robin Hodgkins, President and CEO of Cogent. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cTraditional reports, which feature estimates and commentary on company developments, are just the tip of the iceberg. Historically, we have seen money managers review just one general category for research. Today, clients are asking us to set up their votes so they can review a broader combination of research products and services, depending on the buyside firm\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s investment approach.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d<\/p>\n

    Cogent Consulting LLC is the developer of hedge fund commission management systems that enable money managers around the world to improve productivity and increase transparency for their clients and regulators. Founded in 1983, Cogent\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s products include ResearchTrak\u00c3\u00a2\u00e2\u20ac\u017e\u00c2\u00a2 and HedgeTrak\u00c3\u00a2\u00e2\u20ac\u017e\u00c2\u00a2 broker review and voting systems, CommTrak\u00c3\u00a2\u00e2\u20ac\u017e\u00c2\u00a2 for commission reporting and reconciliation, CSATrak\u00c3\u00a2\u00e2\u20ac\u017e\u00c2\u00a2 for commission sharing and unbundled commission management, and BrokerTrak\u00c3\u00a2\u00e2\u20ac\u017e\u00c2\u00a2, a broker-managed portal for relationship management.<\/p>\n

    Alex Akesson
    Contributing Writer
    HedgeCo.Net
    Email: Editor@hedgeco.net<\/a> <\/p>\n

    \n

    HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds! <\/p>\n

    \n

    Be sure to check out our sister sites. www.hedgefundlounge.com<\/a>, www.hedgefundtools.com,<\/a><\/strong> and www.hedgefundemployment.com.<\/strong><\/a> <\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    HedgeCo.Net (New York) – Institutional money managers and hedge funds are paying more for individualized research products and services from Wall Street, according to a newsurvey. Instead of the \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201ctraditional\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d buy\/sell\/hold research reports from analysts, hedge fund investors are looking […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-5614","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=5614"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5614\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=5614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=5614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=5614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}