Stock Picking, Industry Picking and Market Timing in Sell-Side Research

• Main Authors: Kadan, Ohad, Madureira, Leonardo, WANG, Rong, Zach, Tzachi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Analysts; Benchmarks; Stock Picking; Industry Picking; Market Timing; Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3561; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4560/viewcontent/EFMA2013_0145_fullpaper.pdf
• Institution: Singapore Management University

Sell-side analysts employ different benchmarks when defining their stock recommendations. For example, a ‘buy’ for some brokers means the stock is expected to outperform its peers in the same sector (“industry benchmarkers”), while for other brokers it means the stock is expected to outperform the m...