UBS Research Consultant Hires Consultant


According to a press release published by Syracuse University on Monday, May 17th, UBS has hired Fernando Diz, a finance professor in the Whitman School of Management, to evaluate the performance of independent equity research that the firm will provide to clients under the $1.4 billion global research settlement.

Diz, the Martin J. Whitman associate professor and director of Syracuse University’s Ballentine Investment Institute, will use a research-ranking algorithm he originated to produce his rankings. His analysis will help UBS select investment researchers. To prevent any possible bias, Diz will not know the identity of the firms he is evaluating.

Diz’s 5 year contract is with the independent research consultant hired by UBS to select and monitor third-party research the firm is obligated to provide customers under the October 2003 settlement between regulators and 10 of the largest Wall Street investment banks over biased equity research.

It is interesting to note that the UBS research consultant did not feel comfortable with any of the existing research performance systems in the market today, including services provided by StarMine, Investars, MarketPerform, BNY Jaywalk, and Thomson Financial.

Does the marketplace REALLY NEED another measure of research performance?  It looks like one of those situations where more information could produce confusion rather than clarity.  Oh, that’s right, we are talking about the Spitzer research settlement where more equity research will likely produce investor confusion.

Comment by Frankkappa:

anyone know why diz? does he have any experience in analyst performance or is it just the Syracuse connection?


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