Institutional Investor's Alpha Magazine - December 2008 / January 2009 - (Page 52)

Top Analysts Hedge Funds Pick the Top U.S. Analysts HEALTH CARE BIOTECHNOLOGY PHARMACEUTICALS/MAJOR RADIO & TV BROADCASTING SEMICONDUCTORS TELECOM SERVICES Mark Schoenebaum / Deutsche SECOND TEAM David Risinger / Merrill Lynch SECOND TEAM Mark Wienkes / Goldman Sachs SECOND TEAM Christopher Danely / JPMorgan SECOND TEAM Simon Flannery / Morgan Stanley SECOND TEAM Timothy Anderson / Sanford C. Bernstein THIRD TEAM Anthony DiClemente / Barclays Timothy Luke / Barclays THIRD TEAM John Hodulik / UBS THIRD TEAM Geoffrey Meacham / JPMorgan THIRD TEAM Jamilu Rubin / Unaffiliated PHARMACEUTICALS/ SPECIALTY TECHNOLOGY COMPUTER SERVICES & IT CONSULTING Uche Orji / UBS RUNNERS-UP Michael McCormack / JPMorgan RUNNER-UP Yaron Werber / Citi RUNNERS-UP Steven Harr / Morgan Stanley; Geoffrey Porges / Sanford C. Bernstein HEALTH CARE FACILITIES Gregory Gilbert / Merrill Lynch SECOND TEAM Roderick Bourgeois / Sanford C. Bernstein SECOND TEAM James Covello / Goldman Sachs; Mark Lipacis / Morgan Stanley; Glen Yeung / Citi SOFTWARE Jason Armstrong / Goldman Sachs MACRO Heather Bellini / UBS SECOND TEAM CONVERTIBLES Adam Feinstein / Barclays SECOND TEAM Kenneth Cacciatore / Cowen THIRD TEAM Adam Frisch / UBS THIRD TEAM Corey Davis / Natixis Bleichroeder RUNNER-UP Tien-Tsin Huang / JPMorgan ELECTRONICS MANUFACTURING SERVICES Sarah Friar / Goldman Sachs THIRD TEAM Venu Krishna & team / Barclays ECONOMICS Gary Taylor / Citi THIRD TEAM Brent Thill / Citi RUNNERS-UP Marc Goodman / Credit Suisse Darren Lehrich / Deutsche RUNNER-UP Jim Suva / Citi MEDIA CABLE & SATELLITE SECOND TEAM John Ransom / Raymond James HEALTH CARE TECHNOLOGY & DISTRIBUTION Steven Fox / Merrill Lynch Lisa Gill / JPMorgan SECOND TEAM Craig Moffett / Sanford C. Bernstein SECOND TEAM THIRD TEAM Charles Di Bona / Sanford C. Bernstein; John DiFucci / JPMorgan; Kasthuri Rangan / Merrill Lynch; Philip Winslow / Credit Suisse Ed Hyman / ISI SECOND TEAM David Rosenberg / Merrill Lynch THIRD TEAM Nancy Lazar / ISI EQUITY DERIVATIVES William Stein / Credit Suisse INTERNET Lawrence Marsh / Barclays THIRD TEAM Vijay Jayant / Barclays THIRD TEAM Imran Khan / JPMorgan SECOND TEAM TELECOMMUNICATIONS DATA NETWORKING & WIRELINE EQUIPMENT Ricky Goldwasser / UBS RUNNERS-UP Benjamin Swinburne / Morgan Stanley ENTERTAINMENT Benjamin Schachter / UBS THIRD TEAM Gabriela Baez, Maneesh Deshpande, Evren Ergin & team / Barclays PORTFOLIO STRATEGY Thomas Gallucci / Merrill Lynch; Robert Willoughby / BofA MANAGED CARE Justin Post / Merrill Lynch RUNNERS-UP Ehud Gelblum / JPMorgan SECOND TEAM John Rex / JPMorgan SECOND TEAM Michael Nathanson / Sanford C. Bernstein SECOND TEAM Douglas Anmuth / Barclays; Mark Mahaney / Citi IT HARDWARE Tal Liani / Merrill Lynch THIRD TEAM François Trahan / ISI SECOND TEAM Inder Singh / Barclays RUNNERS-UP Michael Goldstein / Empirical TECHNICAL ANALYSIS Matthew Borsch / Goldman Sachs THIRD TEAM Jessica Reif Cohen / Merrill Lynch THIRD TEAM Benjamin Reitzes / Barclays SECOND TEAM Timothy Long / BofA; Nikos Theodosopoulos / UBS TELECOM EQUIPMENT/ WIRELESS Jeffrey deGraaf / ISI SECOND TEAM Justin Lake / UBS RUNNERS-UP Richard Greenfield / Pali RUNNERS-UP Carl McDonald / Oppenheimer; Joshua Raskin / Barclays MEDICAL SUPPLIES & DEVICES Anthony DiClemente / Barclays; Douglas Mitchelson / Deutsche; Benjamin Swinburne / Morgan Stanley PUBLISHING & ADVERTISING AGENCIES A.M. (Toni) Sacconaghi / Sanford C. Bernstein THIRD TEAM John Roque / Natixis Bleichroeder WASHINGTON RESEARCH Richard Gardner / Citi RUNNER-UP Ehud Gelblum / JPMorgan SECOND TEAM Kathryn Huberty / Morgan Stanley Jeffrey Kvaal / Barclays THIRD TEAM Thomas D. Gallagher & team / ISI SECOND TEAM Michael Weinstein / JPMorgan SECOND TEAM Craig Huber / Barclays SECOND TEAM SEMICONDUCTOR CAPITAL EQUIPMENT T. Michael Walkley / Piper Jaffray RUNNERS-UP Robert Hopkins / BofA THIRD TEAM Alexia Quadrani / JPMorgan THIRD TEAM James Covello / Goldman Sachs SECOND TEAM Lawrence Keusch / Goldman Sachs RUNNERS-UP Tal Liani / Merrill Lynch; Timothy Long / BofA; Timothy Luke / Barclays; Maynard Um / UBS Edward Garlich Jr. & team / Stanford THIRD TEAM Kim Wallace & team / Barclays John Janedis / Wachovia RUNNER-UP Timothy Arcuri / Citi THIRD TEAM Bruce Nudell / UBS; Frederick Wise / Leerink Swann Peter Appert / Goldman Sachs Satya Kumar / Credit Suisse RUNNER-UP Jay Deahna / JPMorgan proportion of neutral ratings an analyst can maintain on stocks in his or her sector. “Stocks don’t behave like neutrals,” says Steven Tighe, the ﬁrm’s head of Americas equity research, in New York. “Most stocks do not trade like ﬂatliners, so we want analysts to ﬁgure out whether they are outperforms or underperforms. That’s where alpha-generation is.” Heather Wolf, a Merrill Lynch banking analyst and Alpha Banks/Midcap first-teamer who includes regional banks Comerica, City National Corp. and Zions Bancorp. among the stocks she follows, downgraded those stocks along with several others last year. “I started to get cautious in the ﬁrst half of 2007 — and by the second half of 2007, we had more than 50 percent with underperform ratings,” Wolf says. The recommendations proved prescient. In the 15 months from Wolf ’s downgrade through November, Comerica was off by 58.4 percent, Zions lost 55.1 percent, and City National dropped 38.3 percent, while midcap banks were down 50.7 percent, overall, and the broad market lost 38.8 percent. Boosting JPMorgan’s ascent to the top is its hiring of what informed sources say were at least 16 senior analysts from Bear Stearns, the No. 1–ranked ﬁrm in 2007. JPMorgan was No. 3 last year, with 26 team positions; Bear Stearns had 36. Among the Bear Stearns refugees hired by JPMorgan are ﬁrst-teamers Joseph Greff, a Gaming & Lodging analyst, and John Rex, who follows Managed Care. Marrying the two departments has created a research powerhouse, but the union was not easy. “It involved going seat by seat to make sure we had the best person from each ﬁrm,” says Thomas Schmidt, JPMorgan’s research director. “We had to make hard decisions and let some really talented 52 • INSTITUTIONAL INVESTOR’S ALPHA • DECEMBER 2008/JANUARY 2009

Table of Contents Feed for the Digital Edition of Institutional Investor's Alpha Magazine - December 2008

Institutional Investor's Alpha Magazine - December 2008 Contents Letter from the Editor Longs & Shorts Inside the Trade Pension Corner The Good Guys Interview: Stanley Fink Cover Story: The New Regulatory Reality United States: The Usual Suspects Europe: Flirting with Unity Asia-Pacific: What Asian Contagion? In Theory In Focus Strategies Research Center Alpha Bytes Unhedged Commentary

Institutional Investor's Alpha Magazine - December 2008

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