Jefferies Research

jbisback Wrote:
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> The name of the shop does not define the quality
> of the analyst. Case in point…Goldman, for the
> most part, puts out the worst research available.
+1
Not only is it bad, it’s often fraudulent. For example:
http://www.zerohedge.com/article/another-goldman-snafu-gs-upgrades-stock...
There are many other examples that have been uncovered recently. Expect nothing to happen since GS “captured” the SEC as well… the recently appointed COO of the compliance division at the SEC is a 29 year old Goldmanite… I’m sure he was appointed for his vast experience lol. I think the best you can do to avoid getting scammed by GS’s research coverage is to ignore it entirely (I don’t even read it anymore). Unfortunately, there isn’t anything you can do about getting scammed by GS’s phoney / fraudulent bailouts, but that’s another story entirely.
Anyway, to stay on topic, I agree with most of the above posters – the name of the shop is pretty irrelevant. If you can get on to one of Jefferies healthcare or med tech groups, that would be a good spot to end up since they have some of the best coverage on the street in those areas. I am not as familiar with the rest of their coverage, but it would likely be a good place to start in this sort of economy when jobs are very tight. You can always change later and move to a shop with a better name or the buy side.
 
Do you really believe that being MEDIOCRE @ GS is better than being the BEST @ a Jefferies? That sound absurd.
IF they call, I’ll give you guys an update.
 
The buyside does not care about where you work. What they do care about is whether you provide good stock calls, access to management, and feed them information that the Street may be missing. Furthermore, you have to realize that investment banking and research are fundamentally different businesses in the way they are structured (I assume you are making this connection).
In research, you typically have one analyst with a few associates and this is typical from BB down to regional boutiques. The quality of the research is dependent on the one analyst. In investment banking, BB have sector teams that are multiple times bigger than any boutique can dream of, therefore there is a competitive advantage as the BB can be much more specialized in various areas of the capital markets vs. a small group of generalists in a boutique (forget about the ability to make/advise certain size deals).
Overall, size does not matter in research. If a firm has a star analyst that is the proverbial “axe” on a name, the buy side will call that person over an analyst at GS without hesitation as the former has likely made the buyside firm more money than the latter.
 
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