• Oppenheimer dismisses 14 senior analysts and support staff
  • Evercore said to cut five analysts from research staff

Oppenheimer Holdings Inc. and Evercore Partners Inc. are cutting stock analysts following a global slump in equity markets.

Oppenheimer dismissed seven senior equity research analysts and an equal number of support staff,  according to Jacqui Emerson, a spokeswoman for Oppenheimer with Peppercomm. Evercore, the investment bank founded by Roger Altman, cut five equities analysts from its research staff, according to people familiar with the decision.

The dismissals at New York-based Oppenheimer were part of a year-end review, Emerson said in an e-mailed statement. Sean McGowan, Holden Lewis. Robert Duboff and James Schumm were among the analysts let go, according to people familiar with the decision, who asked not to be identified discussing personnel matters. The four men declined to comment.

“We will continue to cover all of the firm’s traditional sectors and have refocused our energy efforts toward clean technologies to further support our clients’ needs," Emerson said.

Equity revenue has been hurt by the lack of initial public offerings this year. Smaller banks may cut costs by dropping coverage of industries that have been hit hardest by falling oil prices and volatile stock markets, said Richard Lipstein, managing director of New York-based recruiting firm Gilbert Tweed International.

Energy Vulnerability

"If you’re covering energy, you’re vulnerable," Lipstein said in a phone interview. “You’ve got to align your costs with your revenue."

Chris Allen, who covered capital markets for New York-based Evercore, was among those who departed this week, said one of the people, who asked not to be identified discussing personnel matters. The reductions included senior- and junior-level employees, another person said. Allen didn’t respond to an e-mail and phone call seeking comment.

Banks distribute research reports on companies to hedge funds and portfolio managers in the hopes of handling more trades and also being selected to underwrite stock offerings. Those fees have declined across Wall Street in recent months.

Oppenheimer’s institutional equities commissions fell 2.9 percent to $30.4 million in the fourth quarter from a year earlier, and underwriting fees dropped 38 percent to $5.1 million, the New York-based firm said last month in a statement.

Institutional Equities

Evercore acquired Ed Hyman’s International Strategy & Investment Group in 2014 to expand its research and trading operations, and Chief Executive Officer Ralph Schlosstein has said he’s committed to building the business. Schlosstein last year added senior managing directors from rivals including Goldman Sachs Group Inc. for advising on mergers and acquisitions.

“Evercore continues to take market share in the M&A business,” Schlosstein, 64, said at a December financial conference. “With the recent addition of the legacy ISI franchise, it’s positioning to do the same thing in institutional equities and underwriting businesses.”

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