Vertical Research Adds another Ranked Analyst

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Last week, independent research firm Vertical Research Partners announced that veteran Morgan Stanley analyst Robert Wertheimer will be joining the firm to cover the global machinery sector.  The hiring of Wertheimer is the second significant addition in the past few months to the research firm founded sixteen months ago by II ranked analysts Jeffrey Sprague and Nicole Parent. 

A few months ago, Vertical Research announced that it had hired Chip Dillon and James Armstrong to cover the Paper and Packaging industry globally.

The addition of Wertheimer so close on the heels of bringing on Dillon and Armstrong suggests to the team at Integrity Research that Vertical Research is thriving – despite the difficulties currently faced by many independent research providers (particularly primary research firms).

One of the obvious reasons for Vertical Research’s success is the proven brand of the analysts at the firm, including Sprague, Parent, Dillon and now Wertheimer.  However, we also suspect that another factor that is contributing to the success of the firm is the groundbreaking work done over the past decade by other Wall Street analysts who have helped the buy-side become increasingly comfortable with using independent research boutiques.    

A few of the former Institutional Investor ranked analysts who have paved the way with the buy-side by starting their own independent research firms include Michelle Applebaum, Dana Telsey, Ed Wolfe, Ivy Zelman, James Furey, Bill Pecoriello, Stuart Graham, Jeff Sprague, and most recently Jeff DeGraaf. 

In fact, over the past five years, II rankings have reflected the growing acceptance of indie research by the buy-side.  For example, in 2000 independent research firms garnered only 3 II rankings.  However, by 2010, independent research boutiques captured 25 II rankings (not including Sanford Bernstein who now provides investment banking services).

We suspect that the trend of well-established Wall Street analysts leaving the confines of large investment banks to start their own successful independent research boutiques is likely to continue in the coming years, as the sell-side business model for research remains under pressure with falling commission rates and declining volatility.  However, we also think that the success of former Wall Street analysts will encourage other analysts to consider this career path as a viable alternative to remaining at an investment bank.

Read below for the full press release on Vertical Research Partners’ recent hiring of Robert Wertheimer.

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Vertical Research Partners announced today that Robert Wertheimer will be joining the firm to cover the Machinery sector globally.  Rob, who joins as a Principal of the firm, has been recognized for his insightful coverage in the Wall Street Journal “Best on the Street” poll.  In addition, Rob was highly-rated in the most recent Greenwich Associates survey, capturing the second spot in best industry knowledge and top spot in most detailed financial analysis.  Rob is a nine year Wall Street veteran and joins the firm from Morgan Stanley where he has covered the sector since 2007. 

Managing Partner Jeff Sprague remarked “With the addition of Machinery, Vertical Research Partners continues in its quest to become the preeminent provider of investment research in the Industrials, Energy and Materials sectors”.  Managing Partner Nicole Parent added “we are excited to include Rob among our growing list of analysts who provide differentiated content and thoughtful financial analysis to our client base.  Our ability to hire the best and brightest analysts on the Street validates the pure research model.  With the addition of Rob, Vertical Research now fields six senior analyst teams.”  More details on Rob’s career can be found below.

Robert Wertheimer will be joining the firm to cover the Machinery sector globally.  Rob, who joins as a Principal of the firm, has been recognized for his insightful coverage in the Wall Street Journal “Best on the Street” poll.  In addition, Rob was highly-rated in the most recent Greenwich Associates survey, capturing the second spot in best industry knowledge and top spot in most detailed financial analysis.  Rob joins the firm from Morgan Stanley where he has covered the sector since 2007.  Prior to joining Morgan Stanley, Rob worked as a strategy consultant for small businesses in the Midwest and as a US Peace Corps agro-forestry volunteer in West Africa.  He holds a BA in geology from Carleton College and an MBA from Duke’s Fuqua School of Business.  He will work out of the firm’s New York City office.

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