Thursday, July 12, 2012

Investors: JPMorgan Is No. 1 Stock Picker



Bloomberg reports: “….JPMorgan, under Americas equity research head Noelle Grainger, scored the largest number of highly ranked analysts, making it the No. 1 firm in U.S. equities research. Bank of America was No. 2, followed by Morgan Stanley. 

“To compile the ranking, Stamford, Connecticut-based Greenwich Associates surveyed 980 buy-side analysts at 216 investment management firms, mutual funds, hedge funds, pensions and insurers. The analysts were asked to name the Wall Street research teams they considered their most important sources of advice on investments in 58 industries. Those were winnowed to 35 to ensure a statistically significant number of responses.

“The answers were then weighted by the amount of trading commissions each buy-side firm paid out to banks and brokerages -- $30 million on average, or a total of $5.6 billion. A vote for an analyst by a firm that paid $20 million in commissions was thus given twice the weight of a firm that paid $10 million….”

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