Since 2002 equity analysts in the US have been forced to use a three-tier rating system for the stocks they cover. This Buy/Hold/Sell scheme has become ubiquitous worldwide now, but with it also came the trend towards analysts picking their high conviction ‘Top Picks’ in their coverage. This brings us to the question if analysts are able to pick the winners among their winners, i.e. do analyst Top Picks perform better than analyst buy recommendations on average?
Man GLG had a strategy exclusivel based on analysts top picks and it worked well but it had to be stopped because the analysts were paid in flow for their ideas but there was not enough commision to be shared.
Man GLG had a strategy exclusivel based on analysts top picks and it worked well but it had to be stopped because the analysts were paid in flow for their ideas but there was not enough commision to be shared.