Portfolio Managers’ #1 Frustration With Equity Research Analysts

While I was studying the Japanese language during college, I initially didn’t take notice that the word “chigau” (ちがう) is used to convey both “different” and “wrong.”  But after moving to Tokyo and learning the importance of conforming to the group, I developed a newfound appreciation for why these two English words require only one in Japanese.

I wish we had a word in English that could be used to convey both “different” as well as “correct”, because we could use it with equity research analysts to reinforce that great stock calls are those that are differentiated. After interviewing portfolio managers in New York, London, Tokyo and Singapore, I discovered one common complaint…buy-side and sell-side analysts aren’t differentiated enough from consensus.  The PM’s #1 issue is they often can’t see how their internal analysts or sell-side analysts clearly differ from consensus expectations.

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The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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