ITG Spinoff M Science Trumpets Its Majestic Research Roots

0

M Science, the investment research property recently sold by ITG to Leucadia National, has reverted to branding that strongly evokes its Majestic Research heritage.

The new M Science logo uses the same artwork and typography of its predecessor Majestic Research, while the firm’s new website, www.mscience.com, repeatedly references Majestic and the pioneer role it played in the alternative data space.

The firm has relocated to 520 Madison Avenue, the location of Leucadia National’s executive offices and the headquarters of Jefferies.  M Science is separately branded from Jefferies.  Nevertheless, given that some of the firm’s revenues are received through direct commission trading, strongly encouraged by previous parent ITG, it is likely some clients will continue to direct commissions to the firm.  It would not be surprising if Jefferies’ trading desk is now the preferred vehicle.

Founded in 2002, Majestic Research was the first research firm to focus on alternative data, selling primary research based on large commercial databases which Majestic typically licensed on an exclusive basis.  Sectors covered include airlines, auto retail, casinos, consumer technology, cruise lines, eCommerce, homebuilders, and pharma & biotech.   Majestic added analysts to provide clients with insights based on the information, without buy/sell/hold recommendations, a formula which ITG continued.

M Science focuses mainly on the consumer, technology, telecommunications, and restaurant sectors.  Last September, ITG added a semiconductor industry analyst for the unit.    M Science covers around 200 stocks altogether.

An important initiative for M Science, like competitive alternative data research providers such as 7Park Data and Earnest Research, is to diversify its business into the corporate sector, an effort that has become a higher priority since being spun out from ITG.  M Science is targeting Telecommunications, Consumer and Restaurant companies particularly.

Our Take

M Science will become a more vigorous competitor now that it has been spun out of ITG.   Much of its core analytic team is intact, with a large number of Majestic veterans despite periodic downsizing by ITG.   Clearly it is drawing on its roots to rebuild its franchise and restore morale.

Majestic Research created a price umbrella for its alternative data research competitors, and although M Science will not be competing on price, it might no longer have the clout to enforce a price discipline being disrupted by new entrants such as Thinknum.

Nevertheless, demand for alternative research is growing and M Science is well positioned to regain momentum and market share.

Share.

About Author

Sandy Bragg is a principal at Integrity Research Associates. He has over thirty years experience as an investment research professional. Prior to joining Integrity in 2006, he was an Executive Managing Director at Standard & Poors, managing S&P’s equity research business and fund information properties. Sandy has an MBA from New York University and BA from Williams College. Email: Sanford.Bragg@integrity-research.com

Leave A Reply