Big Banks Exiting Research Presents Opportunity

When the big banks exit a market niche, it turns out small, entrepreneurial hedge funds have been filling the gap with interesting results.

Big banks cutting risky trading operations

As the big banks cut back on their risky trading operations – that are likely to become more risky now that markets are allowed to be so easily manipulated – they are also cutting research on small and mid-sized firms, known as small cap stocks.

A Reuters report points out that 4 in 10 European stocks covered by bank analysts are now without coverage as a result of bank employee cut...