New York, NY – According to a new report published today by Integrity Research Associates, over two-thirds of all hedge funds with more than $1.5 billion in AUM make use of channel checking, with 45% of this group using third-parties to conduct this research. Channel checking is the practice of examining upstream and downstream trends in the supply chain. Analysis of the supply chain can yield insights on trends at both an individual company and industry level. Used well, channel checks can be a powerful source of alpha, providing investors with the ability to use information before it is incorporated in market valuations.
As part of this ResearchFocus: Custom Channel Research report, Integrity evaluated the 18 firms that specialize in providing custom channel research services for the buy side. This report also provided a rigorous comparative analysis of all these firms, with information on their services provided, geographic coverage, scalability for custom projects, cost, popularity and client satisfaction.
Integrity’s new report is part of our ResearchFocus product which provides comprehensive analysis on various segments of the alternative research industry. Integrity has published previous ResearchFocus reports on Forensic and Short Ideas Research, U.S. Small Cap Research, and Expert Networks. The complete press release on the newest report on Custom Channel Research is included below.
Hedge Funds Use Channel Checkers For Primary Research
New York, NY June 16, 2008 — Two-thirds of hedge funds with greater than $1.5 billion in assets perform channel checks, with over 45% using third-party channel research firms to augment their investment research capabilities, according to a new study released by Integrity Research, a specialist research firm covering the investment research industry. Channel checking is the practice of examining upstream and downstream trends in a company’s supply chain.In its latest edition of Integrity ResearchFocus℠, which reviews key segments of the research industry, Integrity reviews twenty three channel checker firms, up from four firms ten years ago. “Prior to 2000, there were only a handful of firms focused on providing custom channel research services to the buy side,” says Michael Mayhew, Integrity’s chairman and co-author of the study. “Today, there are dozens of firms to choose from, each bringing different expertise and approaches.”
Half of all respondents to the survey, including both hedge funds and long only investors, indicated they conduct channel checks as a regular part of their investment process, with 32% using third party firms offering channel checking services. The investor survey, conducted in the first quarter of 2008, included 140 respondents.
Third party channel checking firms apply variety of different market research techniques to analyze the supply chain. Recently, some expert network firms have diversified into the channel checking space, adding custom surveys to their core business of expert consultations. “While specialist channel checking firms used to be the primary providers of channel research, expert networks, sell-side brokers, KPOs and even industry consultancies are getting into the game,” said William Greene, analyst and co-author on the report.
The 74-page Integrity ResearchFocus℠ report provides a framework for choosing which channel checking firms are best suited for investors’ specific research requirements. It provides evaluations of firms that supply channel checking services, an overview of the channel checking industry, growth forecasts for the channel checking industry, Integrity’s “top picks” in the channel checking space, and company-specific information on the most unique and interesting channel checking firms in business today.
Click here for additional information on the current edition Integrity ResearchFocus℠; or contact Matthew Bannister at 212.845.9088 x6851.
About Integrity Research
Integrity Research Associates, LLC is an information and solutions provider specializing in the investment research industry. Its institutional investor clients use Integrity’s services to find new research providers and monitor existing ones. Integrity ResearchSelect™ provides confidential, customized searches tailored to investors’ requirements. Integrity covers over 1,700 research firms in the U.S., Europe and Asia. Additional information about Integrity can be found at www.integrity-research.com.
Integrity ResearchSelect is a registered trademark of Integrity Research Associates, LLC. Integrity ResearchFocus is a service mark of Integrity Research Associates, LLC.