Goldman Sachs Group Inc has given up trying to sell research
from independent analysts to its institutional clients, after spending millions
of dollars on distribution only to find that big money managers had little
interest, the good folks at Reuters tell us.
The bank has laid off or reassigned the dozen or so
employees at its Hudson Street Services unit, which offered data and
independent research to investors. Goldman also sold its minority stakes in
most firms that were producing the research, generating an overall profit in
the process.
Hudson Street's failure is the latest sign of how difficult
it is for smaller research houses to thrive in a market where everyone from the
big Wall Street banks to major mutual fund firms are seeking to cut costs. It is also a sign that major investors may no
longer be prepared to pay for a diversity of opinion about the markets....
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