Investment banks say they cannot get decent research without paying analysts big bucks. Think again. Lower-paid analysts at independent shops are making better stock picks.

ONE-YEAR RETURNS ON OVERALL STOCK PICKS AS OF MAY 22

INDEPENDENT SHOPS INVESTMENT BANKS

CALLARD ASSET MANAGEMENT 8.16% MERRILL LYNCH -2.57% FORD INVESTOR SERVICES 4.88 MORGAN STANLEY -3.11 ALPHA EQUITY RESEARCH 3.48 SALOMON SMITH BARNEY -4.81 COMPUTRADE SYSTEMS 3.02 GOLDMAN SACHS -6.47

Data: Investars

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