NEW YORK (HedgeWorld.com)–At a time when Wall Street banks are cutting back on in-house research, I.A. Englander & Co. is planning to come out with a service tailored to the research needs of hedge funds and institutional investors.
The operation, almost ready to be rolled out, is headed by Seth Novatt, who was previously at CIBC Oppenheimer. There he ran the U.S. private client division. Earlier he was responsible for sales at Oppenheimer.
“The idea is to create portfolio manager-driven research,” he said. To this end, the team being assembled is expected to take a buy-side perspective and provide short as well as long recommendations. It primarily will specialize in less-followed companies.
Englander Research is to have seven to eight analysts by the end of the first quarter. Most of them will do conventional industry research, focusing on segments such as telecommunications equipment, security software and storage and retailing.
Feet to Fire
They are to come up with succinct buy and sell recommendations. “We’ll be holding everybody’s feet to the fire, in terms of the performance of their stocks,” said Mr. Novatt.