Thursday’s Headlines: What Makes a Great Analyst?
It's not just mojo and lucky underwear. For 20 years, the Wall Street Journal has measured the qualities of the top stock analysts in its annual “Best on the Street” survey. This year the paper summarizes the qualities that stand out:
Over two decades we've seen thousands of winners, and it's easy to say, in the broadest sense, why they did well. Analysts who went into a year with a call on a particular stock and stood pat have often performed better than those who make multiple moves. Smaller stocks with lots of room to rise often provide a boost. There's often a bit of luck involved.
But those with truly great skills stand out, because they:
- Research an industry deeply and broadly.
- Get out of the office, attend conferences, meet investors and visit their companies’ plants.
- Have deep contacts with clients, partners and industry experts.
- Are independent thinkers who sell or buy before the herd.
- Have the conviction to zig when others zag.
HSBC is in talks to sell its units in Colombia, Peru, Uruguay and Paraguay. [NY Times]
The Fed approved plans by three Chinese banks to expand in the U.S. [WSJ]
China may let in hedge funds. [Dow Jones]
London bankers should expect their bonuses to be cut in half this year. [Reuters]
BofA shareholders finally approved of its CEO pay. [NY Times]
Credit Suisse launches an alternative index fund to mimic hedge funds. [Investment News]
Cantor Fitzgerald eyes Vegas. [Bloomberg]
Hong Kong tightens IPO regulation. [Financial Times]
Despite industry woes, hedge fund titans appear calm at conference. [DealBook]
Capital International raised $3 billion for an emerging markets private equity fund. [Financial Times]