The process of reviewing broker research is broken.
Reactively reviewing thousands of emails is incredibly time consuming, noisy and inefficient. Finding thematic research is at best hit and miss, and logging into individual contributor portals is cumbersome. Report tagging is inconsistent, and it’s hard to reliably find industry research, initiations and other specific types of reports, especially when search capabilities are limited.
The importance of comprehensive coverage and custom tagging
A major issue when searching for specific industry research or initiation reports is organization. Often, original reports coming from different brokers are not consistently tagged to include specific industry classifications or distinctions between equity and credit research. Different firms may use their own different classification taxonomies, and include their own terms to define industries or trends.
Incorrect or inconsistent broker tagging makes it hard to locate research and filter out irrelevant reports that were miscategorized manually — ultimately slowing down the research process. Inboxes that are clogged with non-actionable or non-prioritized coverage makes it more time-consuming to surface the most relevant reports for your needs.
Let’s say you go to one of the most well-known names in investment research and ask for research on an obscure industry, like “Independent Japanese Power Producers.” That terminology doesn’t fit into any GICS or other classification standards, and the research firm then tells you that they don’t have any research, because they can’t locate it. You’re then left without the data you need, simply because the terms you were looking for were not within the classification hierarchy.
Related: How Corporate Strategy Professionals Use Broker Research
The importance of broker research prioritization
You also run the risk of spending time (and money) searching through reports that didn’t have the insights you were looking for in the first place.
Imagine a company’s investment team suddenly loses a huge amount of money, and realizes that a particular company they were invested in was under investigation. What the investment team failed to catch was the company’s 67-page 8K filing that brokers picked up and published. In response, the stock went down 80 percent.
If the investment team was properly monitoring the right broker research, they would have been alerted as soon as the filing was published. Then the team, armed with better insights, could have worked to respond to the situation swiftly and effectively — instead of losing big.
How to find the most relevant broker research
AlphaSense’s Smart Search technology recognizes relevant language patterns and assigns correct tagging to reports from thousands of analysts and research firms, regardless of which broker provided the report.
A more cohesive broker research portal also ensures you’re maximizing your research spend by only engaging with research that’s important.
Understanding and consolidating nuanced language mitigates risk for missing out on key insights, while creating a unified tagging system across all your broker material. Email or mobile push alerts only deliver relevant reports and insights, cutting through the noise and delivering the signals you’re looking for.
Want to learn more about maximizing your investment research strategy? Download our guide Better Investment Research With Smart Search.
//
hbspt.cta.load(113118, ‘0f56948b-bea4-4740-9f58-237b251a8aab’, {});
//
Clarke Levidiotis leads Product Marketing at AlphaSense. Previously, she launched the Product Marketing functions at both Fiverr (FVRR) and CB insights.
Read all posts written by Clarke Levidiotis
