Sell Side
topic on 2 shows · 6 statements across 6 episodes
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Capital Allocators
6 statements about Sell Side, every show
O'Laughlin: Traditional sell-side equity research is a broken business model on its last legs
“Sell side as a concept is very broken. If you're talking about waves and things that are changing sell side in a lot of ways is this hereditary child of like, let's say, 30 or 40 years of banking. Where you had you know, a company go public, so you needed some…”
Eagle tracks where internal models diverge 5-7 years from consensus
“We have a dashboard internally. And what we do is we pull through all of our companies and we look at the earnings models that we have internally and compare them against analysts sell side. We look where we're out of consensus out five to seven years.”
Cook: Doing the opposite of sell-side recommendations predicts future alpha generation
“You kind of want to do the opposite of what the sell side tells you to do in our business, and it can actually be a very powerful predictive tool for future alpha generation.”
Dodd-Frank regulations severely constrained sell-side balance sheets and proprietary trading
“Dodd-Frank really neutered the sell side in a very big way. There's just not as many prop tests. They can't hold positions in these things overnight the way they used to, so their balance sheets are under constraint.”
Snider: Sell-side structuring prioritizes product volume while investing demands filtering for quality
“My job and when I was on the sell side was create a bunch of widgets, and the more widgets I could create and get out the door, the better. And now my job as an investor is evaluating all those widgets and only picking the best. So I really switched from quant…”