Visible Alpha | Blog

The Financial Conduct Authority (FCA) recently surprised the investment community with the announcement that it would begin conducting audits of brokers and fund managers to ensure proper compliance with the European Union’s revised Markets in Financial Instruments Directive (MiFID II).

“Emerging Technologies: Exploring the European and US players in online food ordering and on-demand music streaming services” explores the key players in two fast-growing industries by using Visible Alpha Insights, an investment research technology platform that provides instant access to deep forecast data and unique analytics on thousands of companies.

In Q1 of 2018, we added 307 companies to the Visible Alpha coverage universe. While our initiations ranged across all sectors, the 5 with the most companies were Industrials (50), Materials (44), Health Care (42), Financials (40) and Technology (36). Additionally, we added 170 companies domiciled in the Americas, 12 in APAC and 125 in EMEA.

MiFID II’s unbundling requirements have greatly impacted the investment research business. The heightened focus on the quantified value of research has had – and will continue to have – far reaching effects for both the buy side and the sell side.

“Go Beyond Consensus: Deep dive into Facebook, Snap and Twitter” is a part of a webinar series hosted by Visible Alpha. This webinar takes a look at three social media companies with Visible Alpha Insights, an investment research technology platform that provides instant access to deep forecast data and unique analytics on thousands of companies. For each company, we present the story, the questions investors are asking and a summary of the insights our platform can provide.

In recent conversations with clients, there is a growing interest in real-time tracking of research delivered from the sell side, as monitoring inducement risk is prioritized under MiFID II. Clients have highlighted that the majority of research consumption occurs through the email inbox, an exceedingly difficult channel to monitor. How do you monitor your investment team’s inboxes? Are you able to answer basic questions, such as:

During this earnings season, we’ve experienced a reversal in investor sentiment around both Twitter and Snap, but where are near-term and longer-term expectations now?

Join us on Wednesday, April 4th at 11:00 AM ET for unprecedented access into the future of social networks.

In this 30 minute session, Visible Alpha’s Research Team will highlight specific investment controversies prevalent within Facebook (FB), Twitter (TWTR) and Snap (SNAP).

• Facebook: How have analyst expectations changed given the recent controversies around newsfeed tweaks, data security concerns, and other issues?
• Twitter: Do analysts expect recent improvements in ad revenue and margin performance to continue?
• Snap: With better-than-expected DAU performance in the most recent quarter, what growth rates are analysts forecasting now?

With the rise of passive investments and increasing regulatory and cost pressures, investment research analysts and portfolio managers are on an eager (and somewhat frantic) search for alpha-generating insights. However, when inundated with research at all hours of the day from all angles, it’s not easy. Buy-side analysts are constantly heads-down in their search for the most relevant and insightful research reports, models and corporate access events to create an edge.

How do investment teams manage the inordinate amount of research they receive, cut through the noise and discover new sources of alpha?

One answer comes in the form of a collaborative and modern research management system.

“Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’” -Warren Buffet

An analyst’s estimates are arguably the most important inputs when attempting to value a company. Investment managers rely heavily on estimates to evaluate company performance, and as informational needs and technology advances, estimates data has evolved to be more detailed and accessible.