Equity guys, what resources do you use for your research process?

Hey guys, so I'm currently at a boutique asset manager w/ enough AUM scale that we can afford nearly all of the bells and whistles when it comes to the research process. For instance, we have SS research (including SS requests & analyst calls which cost $$$$$), databases like Mintel, expert networks like Third Bridge, and traveling to meet with management. And using these resources and some unconventional thinking, our performance has been in the top quartile. To be fair, our research budget is nothing like Millenniums (w/ hundreds of millions a year allocated for this stuff).

However, it's made me wonder, how would we have done if we didn't have these resources? If we were a smaller shop with much less scale and had to ration ourselves to virtually no SS requests, and very little expenses on high-priced databases like Mintel. So I was curious, what kind of resources do you fundamental equity guys use on a day to day basis, and how effectively does your shop generates alpha over the long term as a function of that? Do you feel you can maintain the same performance with less resources? What is the bare-bones that you think you need to beat the market over the long term?

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Comments (6)

Jan 31, 2019

hedgehog9, bummer your thread hasn't had a response yet. Sometimes bots are smarter than humans anyways:

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I hope those threads give you a bit more insight.

Feb 9, 2019
hedgehog9:

Hey guys, so I'm currently at a boutique asset manager w/ enough AUM scale that we can afford nearly all of the bells and whistles when it comes to the research process. For instance, we have SS research (including SS requests & analyst calls which cost $$$$$), databases like Mintel, expert networks like Third Bridge, and traveling to meet with management.

Weird flex but ok

Feb 9, 2019

They may be interested in hanging their own shingle with friends and family money. With a small AUM base, you don't have the same resources, so you want to make sure your ability to make money isn't tied to those resources before you take the plunge.

Funniest
Jan 31, 2019

It's not a flex. I'm explaining the resources I have access to, and trying to understand how shops without those resources manage to outperform. Being from an asset manager with AUM scale like I mentioned isn't remotely uncommon or special.

Jesus, can't even explain things factually without getting some kid trying to use the "weird flex but ok" line that he's heard his friends say 100 times before and he's finally excited to use it for the first time on an online forum

    • 3
Feb 9, 2019

Well, how many ideas that you've gotten in the book had a critical component of the thesis be realized as the result of one of these services, and were they things you could've done yourself?

Jan 31, 2019