Two research analysts have left First Horizon Corp.'s FTN Midwest unit to start their own research company. Eric Bosshard and Chris Byke have formed Cleveland Research with a research staff of 25 people.
Bosshard told The Wall Street Journal that he and Byke launched their firm partly because of concerns about FTN's investment banking business. Bosshard had been co-heard of research at FTN Midwest. In a press release, the company said it "will operate independent of any investment-banking or trading conflicts" and will "limit availability of the research it produces to 125 select investment firms." The Journal said the firm will charge clients a minimum cash rate of $250,000 per year.
"It has never been more clear that clients have a demand for insightful, proprietary research that can help them make better investment decisions," said Bosshard, who is the new firm's chief executive and director of research. Byke will hold the offices of president and director of sales.
For its part, FTN Midwest said it continues to pursue the traditional investment baking-research-trading model.