New York – The 2010 All-America Research Team was announced by Institutional Investor on Tuesday, marking the 39th time the awards have come out. The big winner in the awards was J.P. Morgan who moved into the top spot (up from second place last year) with 46 total rankings, 2 more than last year. J.P. Morgan knocked Barclays off its perch at the top, where it sat for the last 7 years. Barclay’s lost 3 rankings from last year, moving their overall total to 43. Bank of America rounded out the top three, gaining 5 rankings to finish with 42 total.
Institutional Investor consulted nearly 3,500 individuals at some 970 firms to compile the results of their awards. The respondents to the survey manage an estimate $10.2 trillion in U.S. equities.
We have written in the past about how Independent firms have fared in these rankings and in particular about how they have been picking up steam in the past few years. This year’s performance by the independents was no different. There is one change from last year however, Sanford Bernstein has started to offer investment banking services and as such we can no longer consider them independent. Taking them out of the equation from last year and this year, we see that independents have again increased the overall number of rankings received.
|Wolfe Trahan & Co. (Wolfe Research)||3||1|
|Empirical Research Partners||2||2|
|Strategas Research Partners||2||2|
|Consumer Edge Research||1||0|
|Furey Research Partners||1||1|
|Potomac Research Group||1||0|
|Vertical Research Partners||1||0|
|Washington Analysis Corp.||1||1|
|WJB Capital Group||1||0|
|Zelman & Associates||1||1|
|Janet Pegg / Encima Global (NO)||0||1|
Perhaps even more striking is the fact that the quality of the analysts on the list seems to be improving. In 2009 (discounting Sanford Bernstein), 7 independents ranked on the 1st team, this number increased to 10 this year. 2010 also saw six 2nd team finishers among independent analysts, one more than 2009. And there was even one more 3rd team ranked independent analyst (2 total) than there was in 2009 (1 total).
More independent firms also had an analyst ranking in the awards than in 2009. In 2009 9 different independent firms had an analyst who ranked in the awards (disregarding Sanford Bernstein). This year the number jumped to 12. The lone independent who was ranked in 2009 and did not win an award in 2010 was Janet Pegg, who left Encima Global in June of 2009 to work for UBS as their Managing Director and accounting analyst.
As we stated last year, the performance of the independent research firms in these rankings should come as no surprise as indie’s have been gaining acceptance from buy-side investors over the past decade. Some might argue that this trend is a result of the fact that a number of highly regarded sell-side and/or buy-side analysts have moved to, or started their own independent research firms in recent years, however, Integrity sees this as a clear indication that top ranked analysts have finally come to the realization that they don’t have to work at sell-side firms to successfully commercialize their brand names, now that buy-side analysts and portfolio managers are comfortable with paying independent research firms for their investment research.