II Ranked Bernstein Analyst Joins Indie Research Firm


Recently founded indie research firm, Sector & Sovereign, announced that Institutional Investor ranked TMT analyst, Mr. Paul Sagawa, has joined the firm.  Sector & Sovereign LLC, established in 2009 focuses on conducting sector and subsector analysis on the Healthcare sector, as well as evaluating the impact of government and regulatory developments on the industry.  With the addition of Mr. Sagawa, Sector & Sovereign now adds the TMT sector to their coverage universe. 

Sagawa Joins Sector & Sovereign

Mr. Paul Sagawa will be leading the firm’s Technology, Media and Telecom practices.  Paul has worked in and around the technology and telecommunications industries for over 20 years, including his 11 year tenure as a senior research analyst at Sanford Bernstein. 

While at Bernstein, Mr. Sagawa was named to the Institutional Investor All-Star Team in three different categories, including the number one position in wireline communications equipment after his prescient call in September 2000 noted that cash-strapped telecom carriers would be unable to pay for technology purchase commitments and correctly predicted the subsequent collapse in the sector.  In his most recent position at Bernstein, Paul conceived and launched a new business area as the firm’s first Small Cap Equity Strategist.

Prior to Bernstein, Paul spent six and a half years at McKinsey and Company, rising to the position of technology sector specialist in recognition of his communications industry acumen.  His earlier experience includes three years as a sales representative for AT&T’s equipment business.  Paul earned his AB in Economics and MBA from Harvard University.

Background on Sector & Sovereign

As mentioned previously, Sector & Sovereign LLC was founded in 2009 by research industry veterans, Brian Raabe and Dr. Richard Evens who formerly worked together at Sanford C. Bernstein.  Their new research firm focuses on conducting sector and subsector analysis, addressing issues like sector profitability, technological advances, as well as foreseeable or unforeseen endogenous or exogenous shocks.  In addition, Sector and Sovereign evaluates the impact of government policy on the future value of securities across the various sectors and subsectors under coverage.  With the addition of Mr. Sagawa, the firm now covers both the Healthcare, as well as the Technology, Media and Telecommunications sectors, though the firm plans to build out sectoral coverage in key areas over the next several years.

Integrity’s Take

The addition of Paul Sagawa to the Sector & Sovereign team is not surprising given the fact that Raabe, Evans and Sagawa all worked together at Bernstein.  However, we think this news is important because it supports the contention we have been making for the past few years that the independent research industry has become a viable alternative for top notch equity analysts – a view we discussed a few weeks ago is evaluating data from the annual Institutional Investor Rankings.  High quality equity analysts now have three attractive options – they can work on the sell-side, they can move to the buy-side, or they can join the growing ranks of the independents.


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