Institutional Investor's Alpha Magazine - November 2007 - (Page 60)

Top Analysts N MAY 10, 2007, the U.S. Food and Drug Administration held a nine-hour meet- ing over potential labeling changes for Aranesp, Amgen’s best-selling drug, used to treat chemotherapy-induced anemia. Restrictions could annihilate sales at the Thousand Oaks, California–based biotechnology giant. Early the next morning hedge fund managers were scrambling to determine the impact the meeting would have on the company’s shares, and sell-side analysts were frantically penning notes to their clients. But 300 hedge fund managers and other investors were already deep in discussion of the matter with Bear, Stearns & Co. biotech analyst Mark Schoenebaum, who pointed out that the tighter restrictions endorsed by the FDA would have reduced U.S. sales of Aranesp by at least $700 million in 2006. Yet he stood behind the outperform rating he had on the stock, which was up 1.4 percent by the end of October. Over the past 18 months, Schoenebaum has thrown together roughly 50 such “Biotech on the Fly” conference calls, which have proven invaluable to his clients. “Mark is very good at knowing what concerns the Street and detailing the potential outcomes before offering his own view on the most likely outcome,” says Kurt von Emster, manager of Boston-based MPM Capital’s $300 million MPM BioEquities Fund. By holding conference calls rather than pumping out research, Schoenebaum is able to react to news more quickly and comprehensively than can some of his peers. For hedge fund managers, the calls provide an opportunity not only to listen but also to ask questions — over the phone or anonymously through e-mail. It’s this kind of service that keeps Schoenebaum ranked ﬁrst among biotechnology analysts and helps Bear Stearns rank as the No. 1 sell-side research shop among the hedge fund ﬁrms that voted in our sister publication’s All-America Research Team ranking of top U.S. analysts. For a fifth straight year, Alpha recalculated the results from Institutional Investor’s All-America survey — which polls a wide spectrum of portfolio managers and buy-side researchers — using solely the votes from hedge funds. More than 280 hedge fund ﬁrms representing more than $800 billion in assets took part in the survey. That includes two thirds of our 2007 Hedge Fund 100 ranking of the world’s biggest single-manager hedge fund ﬁrms (Alpha, May 2007). Bear Stearns tops this year’s ranking with 36 total team positions, up from 25 last year, ending the four-year hegemony of Lehman Brothers. Bear’s ten first-team positions include three new wins, in the Gaming & Lodging, Pharmaceuticals/Major and Telecom Equipment/Wireless sectors. “We’re always innovating,” says Kay Booth, Bear’s global head of equity research. Among the research initiatives she The leaders RANK 2007 2006 1 2 3 4 4 4 7 8 9 9 11 12 13 14 14 14 14 14 2 1 2 2 6 6 2 10 8 8 11 12 14 17 16 17 — 14 FIRM Bear, Stearns & Co. Lehman Brothers JPMorgan Securities Banc of America Securities Citi Merrill Lynch UBS Goldman, Sachs & Co. Credit Suisse Morgan Stanley Sanford C. Bernstein & Co. Deutsche Bank Securities International Strategy & Investment Group CIBC World Markets Cowen and Co. Natixis Bleichroeder Pickering Energy Partners * Wachovia Securities TOTAL TEAM POSITIONS 2007 2006 36 31 26 21 21 21 20 17 15 15 14 12 4 2 2 2 2 2 25 47 25 25 23 23 25 17 20 20 13 10 3 1 2 1 0 3 FIRST TEAM 2007 2006 10 10 4 4 7 3 7 1 4 5 2 1 3 0 0 1 0 0 8 19 5 4 4 2 6 4 6 6 1 1 2 0 0 0 0 0 SECOND TEAM 2007 2006 12 10 9 7 5 4 2 1 2 4 2 0 0 1 0 1 0 1 5 10 7 8 5 8 6 2 3 2 5 1 0 0 0 0 0 1 THIRD TEAM 2007 2006 7 6 6 4 2 6 3 6 4 3 3 5 0 1 1 0 1 1 3 6 5 8 5 7 3 8 5 4 3 1 0 1 1 0 0 0 RUNNERS-UP 2007 2006 7 5 7 6 7 8 8 9 5 3 7 6 1 0 1 0 1 0 9 12 8 5 9 6 10 3 6 8 4 7 1 0 1 1 0 2 * Pickering Energy Partners and Tudor Capital Partners merged effective August 3; the combined company is Tudor Pickering & Co. 60 • INSTITUTIONAL INVESTOR’S ALPHA • NOVEMBER 2007

Table of Contents Feed for the Digital Edition of Institutional Investor's Alpha Magazine - November 2007

Institutional Investor's Alpha Magazine - November 2007 Contents Letter from the Editor Longs & Shorts Pension Corner: Patriot State The Good Guys: College Connection Interview: Currency of Change Cover Story: Comeback Kid Strategies: Masters of Art Research Center: Alpha Awards: Top Technology Providers Top Analysts Alpha Bytes: Critical Choice Unhedged: Commentary: Banking on a Bubble

Institutional Investor's Alpha Magazine - November 2007

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