New York – As part of Integrity’s ongoing efforts to monitor the global investment research industry, we have recently updated data on all the Europe-based independent research providers in database. Our database now includes 155 such providers.
The chart below shows the breakdown of this universe by methodological style. As the chart indicates, the largest percentage of IRPs in Europe fall into the “specialized” methodological classification. This includes a range of different methodological styles, including ESG (environmental, social and governance) analysis, industry analysis, forensic accounting analysis , insider trade analysis, IPO analysis, and merger/risk arbitrage analysis, as well as a range of “other” styles that do not fit neatly into any category.
In addition to independent research providers, Integrity maintains coverage on European “brokers” that provide research and investment banking services. There are literally hundreds of these firms across Europe. Most of them provide standard fundamental “maintenance” research. However, Integrity has identified a number of brokers that have unique, value-added offerings.
According to industry studies, many Europe-based analysts regard idea generation as the most important quality in a research provider. Integrity’s own experience working with buy side analysts and portfolio managers has generally corroborated this fact. Our analysis has shown that independent research providers are generally a better source of idea generation than the brokers. There are, however, some “diamond-in-the-rough” brokers that consistenty provide fresh ideas.