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    Hi all,

    So I have been reading and following alot of research coming out of the BB's. (FICC as oppose to Equities but same could be said for ER) and there appears to be very little in the way that differentiates the product. Most of it seemingly takes on a consensus view and I haven't read something yet which is different to the market, a little controversial and or particularly interesting. There was one Strategist that was however, who wrote interesting weekly notes which would draw on themes from History and but he is now working at a HF. I have also heard of one analyst at MS who got fired for making comments about the Chinese leadership that were deemed inappropriate.

    This has made me wonder....Is there room to be contrarian within IB research? Through training etc. do people encourage you to just write in line with consensus?
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    Aaaanyone...?
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    Hi, have you read liars poker? Its a good book

    Also, you should take economics mathematics and further mathematics if you want to become a trader
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    (Original post by Frenchous)
    Hi, have you read liars poker? Its a good book

    Also, you should take economics mathematics and further mathematics if you want to become a trader
    Is this in line with Consensus? Ha
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    I'm not super familiar with research, but whenever I read of a contrarian analyst they always come from small firms. It seems intuitive that firms that have fingers in lots of pies don't want their researchers to burn any of those pies, and perhaps elements of the Chinese wall don't work as well as they should. Occasionally I read a blog post that is still sceptical about the ability of BB research to be truly independent.
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    (Original post by MinorityInterest)
    I'm not super familiar with research, but whenever I read of a contrarian analyst they always come from small firms. It seems intuitive that firms that have fingers in lots of pies don't want their researchers to burn any of those pies, and perhaps elements of the Chinese wall don't work as well as they should. Occasionally I read a blog post that is still sceptical about the ability of BB research to be truly independent.
    You are right, and that's the edge that smaller indepdent research firms have, they have no conflicts of interest and can write what ever the hell they want. If the whole street is long apple, see the wood from the trees and put a short rating on it.

    I just think the research at BB's needs spicing up, it is, in the views of buy side guys a declining service. The more value is added from face to face meetings imo.
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    (Original post by Tara_99)
    You are right, and that's the edge that smaller indepdent research firms have, they have no conflicts of interest and can write what ever the hell they want. If the whole street is long apple, see the wood from the trees and put a short rating on it.

    I just think the research at BB's needs spicing up, it is, in the views of buy side guys a declining service. The more value is added from face to face meetings imo.
    I think it is fairly obvious that you have to take it with a pinch of salt (everyone does)...my exp. is with equities, and most research isn't very insightful. ER, despite the huge energy that is expended getting there, is basically just copying press releases and model updates. However, it is worth highlighting a few points.

    First, I don't particularly fancy the job of having to constantly make a judgement on the price of certain stocks.

    Second, sell-siders are often accused of missing the "big picture" but often understand very well what moves a stock, this doesn't apply to every company but they often correctly pick the right variables to look at.

    Third, being right is preferable to being controversial. Research is filled with people who have no money on the line and like to kick up a lot of dust and controversy (Mike Mayo, perhaps). These people often move around a lot, people often seem to assume that is because they are so incisive and cutting edge...it is just because they are bad at their jobs. In addition, the height of contrary thought isn't going "everyone is long X so I will go short", that is just the same as letting other people do the work for you.

    Fourth, as with everything, some people are good, some are bad. I did work experience at an HF that has followed a certain analyst around for years and takes the opposite side of his trades. There are some places that are good too. In my view, Jefferies and MS are generally pretty good. There is a big difference though between independent research and small sell-side...small sell-side is ****, independent research is usually very good. It is increasingly common for HFs to take independent research people on retainer.

    Sell-side research though is generally fine, you usually get a vague view from someone who is well-informed (face-to-face info is usually far better) and smart. If your using it to build the core of an investment case your probably in the wrong business.
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    Andy Xie is the perfect example of this.
 
 
 
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