When Keith McCullough larboard his barrier armamentarium job endure October to alpha an absolute analysis company, it may accept seemed like a analytical move. Fourteen months, a awful clear-sighted alarm on the bazaar crash, and several key hires from top barrier funds later, McCullough's company, Analysis Edge LLC, is basic a affiliation with the institutional allowance analysis of LaBranche & Co. (LAB) that will see LaBranche action absolute trades for its audience based on Analysis Edge's research.
The partnership will allow customers of LaBranche Financial Services LLC, including hedge funds, to get access to Research Edge research and immediately trade on that research through LaBranche. Existing customers that are clients of both LaBranche and Research Edge would automatically be able to use LaBranche for the trades, and LaBranche will have a team dedicated to pitching Research Edge to its other clients. LaBranche customers who pay for Research Edge research will be the only LaBranche clients who can act on that research. Neither company would comment on financial terms of the deal.
Research Edge has analysts in four sectors, each with significant hedge fund and/or street experience. The company is soon expanding to a fifth sector, technology, and aims to eventually cover nine sectors. McCullough, who has worked as a portfolio manager and in other positions at several hedge funds - including Carlyle-Blue Wave Capital Partners and Dawson Herman Capital Management - combines his analysts' calls with his own macro views in Research Edge's research. While the research is aimed at hedge funds, McCullough said he's been surprised by how many traditional money managers have become clients. The fact that Research Edge is independent and doesn't do investment banking, he said, is what the mutual fund managers like the most.
McCullough, who in college was captain of Yale's ice hockey team, points out that before the market started really crashing, Research Edge told clients that the smart move would be to have 96% of their assets in cash.
Research Edge counts among its analysts footwear and apparel analyst Brian McGough, who previously worked at Morgan Stanley and hedge fund Copper Arch Capital. Thomas Tobin, who covers healthcare and like McCullough used to work at Dawson-Herman, is another Research Edge analyst.
McCullough officially launched Research Edge in April, and the company started generating revenue in July. He has about 26 employees, almost 20 of whom are in his analyst division.
LaBranche's Financial Services team, the official name of LaBranche's institutional brokerage, was founded in 2002 and is headed by Michael O'Hare, former head trader at J.P. Morgan Chase & Co. (JPM) and before that the head block trader for Lehman Bros. LaBranche & Co. hired O'Hare earlier this year, and at the time he emphasized portfolio managers' need to get high-volume trades done.
O'Hare's team has traders experienced in many of the same sectors that Research Edge's analysts cover, which O'Hare said would be an advantage when it comes time to make the trades. Currently, O'Hare says the institutional side has between 12 and 14 employees, but that he plans to expand that to 35 or 40.
The bulk of LaBranche Financial Services' clients are institutions and professional traders. LaBranche formed the division as a way to move away from its specialist-firm routes, at a time where technology on Wall Street was taking away the demand for specialist firms.
Source By : Joseph Checkler, Dow Jones Newswires; 201-938-4297; joseph.checkler@ dowjones.com
The partnership will allow customers of LaBranche Financial Services LLC, including hedge funds, to get access to Research Edge research and immediately trade on that research through LaBranche. Existing customers that are clients of both LaBranche and Research Edge would automatically be able to use LaBranche for the trades, and LaBranche will have a team dedicated to pitching Research Edge to its other clients. LaBranche customers who pay for Research Edge research will be the only LaBranche clients who can act on that research. Neither company would comment on financial terms of the deal.
Research Edge has analysts in four sectors, each with significant hedge fund and/or street experience. The company is soon expanding to a fifth sector, technology, and aims to eventually cover nine sectors. McCullough, who has worked as a portfolio manager and in other positions at several hedge funds - including Carlyle-Blue Wave Capital Partners and Dawson Herman Capital Management - combines his analysts' calls with his own macro views in Research Edge's research. While the research is aimed at hedge funds, McCullough said he's been surprised by how many traditional money managers have become clients. The fact that Research Edge is independent and doesn't do investment banking, he said, is what the mutual fund managers like the most.
McCullough, who in college was captain of Yale's ice hockey team, points out that before the market started really crashing, Research Edge told clients that the smart move would be to have 96% of their assets in cash.
Research Edge counts among its analysts footwear and apparel analyst Brian McGough, who previously worked at Morgan Stanley and hedge fund Copper Arch Capital. Thomas Tobin, who covers healthcare and like McCullough used to work at Dawson-Herman, is another Research Edge analyst.
McCullough officially launched Research Edge in April, and the company started generating revenue in July. He has about 26 employees, almost 20 of whom are in his analyst division.
LaBranche's Financial Services team, the official name of LaBranche's institutional brokerage, was founded in 2002 and is headed by Michael O'Hare, former head trader at J.P. Morgan Chase & Co. (JPM) and before that the head block trader for Lehman Bros. LaBranche & Co. hired O'Hare earlier this year, and at the time he emphasized portfolio managers' need to get high-volume trades done.
O'Hare's team has traders experienced in many of the same sectors that Research Edge's analysts cover, which O'Hare said would be an advantage when it comes time to make the trades. Currently, O'Hare says the institutional side has between 12 and 14 employees, but that he plans to expand that to 35 or 40.
The bulk of LaBranche Financial Services' clients are institutions and professional traders. LaBranche formed the division as a way to move away from its specialist-firm routes, at a time where technology on Wall Street was taking away the demand for specialist firms.
Source By : Joseph Checkler, Dow Jones Newswires; 201-938-4297; joseph.checkler@ dowjones.com
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