First, we want to thank you for reading our blog. We’ve attracted a following over the past year and we appreciate the wonderful feedback that we’ve received.
Many of you are probably wondering, who are the Geeks that run this blog?
We’re analysts at Tiburon Research Group. We’re industry veterans that have been selling our research on a subscriptions basis to buy-side investors for 9+ years. Rob used to work in Treasury/FP&A at Gymboree and Restoration Hardware and Leah used to manage an Anthropologie store and departments at Nordstrom.
The traditional sell-side equity research model is broken. Today, traditional sell-side equity research is more focused on maintaining relationships with management than providing a high level of due diligence or value-added analytics. The managerial relationship is the key to the sell-side analyst getting paid… generating commission revenue by providing their buy-side clients ‘access’ to management in the form of road shows or one-on-one meetings.
The primary financial incentive for the traditional sell-side analyst is to regurgitate managerial spin and to never critique or question the management team’s strategy/operational execution. Anything less than fully accepting managerial talking points (at least publicly) gets in the way of the sell-side analyst being able to convince management to participate in ‘events’ that indirectly get that analyst paid.
Tiburon Research Group provides the incremental layer of research to sophisticated buy-side investors beyond the (1) 30,000 foot analysis and the (2) regurgitation of managerial talking points that is provided by the traditional sell-side analyst community. Our research has two primary areas of focus: (1) earnings analytics, and (2) daily store-level primary research.
Why the Blog? An Antidote to Corporate “Truthiness.”
Management teams have it too easy. Traditional sell-side analysts allow management teams to set the agenda and to compare the company’s financial results “against themselves” as opposed to a logical comparison to their peers. Traditional sell-side analysts have allowed corporate “truthiness” to dominate the analytical debate while pushing aside earnings analytics and peer comparison.
Occasionally, on this blog we like to challenge managerial spin and poke fun at the sell-side analysts that enable companies to successfully divert attention away from its red flags.
We believe that savvy buy-side investors appreciate a venue that many times will mock managerial spin doctoring. Also, the material here provides prospective clients an opportunity to get a taste of the type of in-depth quantitative and qualitative analysis that we provide to the largest money managers in the world.
Want to Meet the Geeks?
Rob and Leah will be in NYC the week of December 13, 2010. If you’re a prospective client and would like to learn more about our research and subscribing to our research product, please contact Sonja Markova at 415.434.1731.
Otherwise, enjoy the blog and continue to send us your feedback and well wishes.
Disclosure: No positions