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2010 All-Europe Research Team
Overview | Leaderboard | Weighted Results | What Investors Want | Leading Analysts | Runners Up | Methodology | 2009 Results | View Article |


Overview

European Equity Market Rebound Spurs Reversal of Fortunes

What goes down must come up: That’s the advice many analysts and brokerages were offering investors as European equity markets tumbled in the final months of 2008 and the opening weeks of 2009, hoping to convince clients that the rout presented a buying opportunity. Relatively few investors took heed, however, preferring to pull their money out of stocks and seek safe havens elsewhere.

“Investors entered the year with real concerns that there could be a 1930s-like Depression,” explains Nicholas Pink, London-based director of European equity research at UBS. “Sentiment was negative, and there were serious concerns about the security of the banking system in the West.”

That sentiment began to shift in early March, after the Bank of England and the European Central Bank simultaneously slashed their benchmark interest rates to their lowest levels then on record, flooding local economies with cash in an attempt to jump-start an economic resurgence. Equity markets took notice: The MSCI Europe index, which had fallen 21.7 percent year to date through March 9, began to rise — and it kept going, ending the year up a whopping 57.6 percent above its low.

“The move was the catalyst for a phenomenal rally in equity prices, as the market moved from discounting a possible Depression to discounting a normal cyclical recovery and earnings,” says Pink.

The rebound in European equity markets seemed to come as swiftly and suddenly as their collapse, spurring a demand for research as investors sought to discover if the rally was sustainable and which sectors and industries offered the greatest potential for profit. Money managers say no firm did a better job of keeping them informed in a year of market extremes than UBS, which for a ninth year running leads the All-Europe Research Team, Institutional Investor’s 25th annual ranking of the region’s most highly regarded equity analysts. The Swiss bank captures 28 total team positions, six more than the three firms that tie for second place: Credit Suisse, which jumps from fifth place last year; J.P. Morgan, which rises from fourth; and Nomura International, which catapults from eighth place. Rounding out the top five is BofA Merrill Lynch Global Research, with 21 team positions; the firm was ranked second last year. Results are based on responses from more than 1,100 portfolio managers and investment officers at some 500 institutions managing an estimated $5.4 trillion in European equities.


More-detailed coverage of the 2010 All-Europe Research Team can be found in the February issue of Institutional Investor. To start your subscription, click here.

For more information about these rankings, please contact Alyssa Walker at awalker@iiresearchgroup.com.



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