Back in the 1990’s when our founder, Scott Rosen, was an equities analyst himself, sell-side analysts had a significant informational advantage over their clients. Before Reg FD and tighter regulation of access to non-public information, and before the rise of the Internet and the democratization of access to public data, brokerage analysts could leverage their privileged position in the market to provide significant value to investors without having to show their work.
While research is just as critical to the investment process today, that arbitrage opportunity has been dramatically reduced. As a result, investors demand far more detailed and comparable analysis from their research providers, requiring that they demonstrate their value in transparent and measurable ways.
As Entrepreneur in Residence of TheMarkets.com, a consortium of the world’s most prominent investment banks, Scott worked with the leadership of the banks’ respective research departments to develop solutions to increase the value proposition of their individual and collective content.