New York – A few months ago, this newsletter reported: “Unfortunately, this story doesn’t end happily. Kennedy quit his job as an analyst with Jefferies & Co. in early July and is currently looking for a research analyst position with an independent research firm that has no investment banking conflicts.”
We were referring to Brian Kennedy, an analyst covering the healthcare sector at Jefferies & Co., who faced considerable pressures last year to reverse a “SELL” call he made on CardioNet. The stock indeed plunged after the call was made in April. Nevertheless, corporate management and other sell-side analysts at firms of the underwriting syndicate instilled high pressure on Kennedy to reverse his call, leading him to abandon the sell-side in looks for a more independent environment to conduct his stock analysis.
Fortunately, this story does have a happy ending. The wires announced yesterday that Brian Kennedy has joined Favus Institutional Research, an independent healthcare equity research firm based in New York City. The firm uses a fundamental approach to evaluate the healthcare sector and make buy-hold-sell recommendations. Favus was founded in February, 2009 by Elliot Favus M.D., who has worked as a healthcare equity research analyst since 2006 at Lazard Capital Markets and Och-Ziff Capital Management Group.
By joining Favus Institutional Research, Brian Kennedy is engaging in a sector where he will be able to make the recommendations he considers more appropriate according to in-depth research and analysis, without facing pressures motivated by alien interests. Once more, the alternative equity research industry offers a home to independent and insightful analysis.