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Worse, he added, Wall Street firms' jealously guarded data made it almost impossible for customers to assess analysts' performance.
But he found that for most of the analysts, performance suffered significantly after they started a new job.
But he also defended intelligence analysts' performance, saying that they had not been swayed by political pressure and that "as intelligence professionals, we go where the information takes us".
Now two men from Lehman Brothers have come up with a way of objectively measuring and ranking the best analysts' performance, and they've put their results on the World Wide Web.
The QAS require regular inspection audits by accrediting bodies, continuing education of laboratory staff, semiannual proficiency tests of analysts, performance validation of methods, use of traceable measurement standards, and technical review of results.
Similar(55)
Investars and other firms that track analyst performance, like Starmine in San Francisco, want to sell subscriptions to Wall Street firms for distribution to investors.
"For an industry that prides itself on trading in -- and relying upon -- information, it was surprisingly difficult for us to gather the data necessary to objectively measure analyst performance," he said in his speech, made at the Ritz-Carlton HoteLower Manhattanattan.
From that mass of information, StarMine has developed a battery of statistical techniques for sifting out and grading analyst performance for accuracy in stock picking and earnings forecasts.
According to research firm StarMine, which tracks analyst performance, over the past 36 months, Groh has bested an industry return of 89% (cumulative) by 50%.
Bear Stearns, ranked second for 2006 analyst performance, had 17 awards, six more than in the previous year, when it was in seventh place.
Conducted by our partners at StarMine, a research organization that evaluates analyst performance, the survey identifies Wall Street's best in two categories: stock picking and accuracy in earnings estimates.
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Justyna Jupowicz-Kozak
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