In order for investors to invest in your company, and to stay invested, they need to understand it. We aim to bring a proper understanding of your company to as many investors as possible, and to the most appropriate investors.
With the introduction of MiFID II, the distribution of free independent research has been curtailed. Independent research on your company can now only be sent to fund managers who are paying the broker. Not every broker is being paid by every fund manager. As a result, it is now unlikely that any broker will be sending research on your company to the majority of investors unless it is issuer sponsored. Unfortunately, smaller, specialist investors are those most likely to be missed.
Issuer sponsored research on the other hand is required to be made available to all institutional investors. But issuer sponsored research has been seen by some as being too conflicted. We aim to change that.
Challenging, honest research
There is no point in paying for research that is just a re-write of your press releases. We will not shy away from discussing the weaknesses in any company we cover. Fund managers will not buy into an investment case where they cannot see both the good and the bad. What we aim for is an honest and fair assessment and in being fair will always offer our companies a chance to comment.
We also provide the market with forecasts, which are essential to many fund managers’ processes. We also ensure that these contribute to any consensus, again important to some investment styles.
But most importantly we see the research report as an entry into a dialogue with investors. As we do not trade we are not restricted from shareholder contact and we see this as important.
Corporate finance advice
Longspur Research operates as part of Longspur Capital, a Financial Conduct Authority (FCA) registered corporate finance advisor. Investors know that corporate finance exists to raise money for companies. Because investors understand we may come to them for financing, they know we need to keep our research impartial to keep them on side.
We offer deep research, supported by corporate finance, and distributed as widely as possible. In addition to our investment research we can offer a number of other services:
- Fund raising
- Valuation services
- Corporate advice
- Equity marketing and investor relations