Europe Blew Up Financial ResearchHedge Funds and U.S. Firms Won
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Recent European rules concerning payment for research, known as MiFID II, may have benefited hedge funds and U.S.-based asset managers more than the European clients they were written to help, according to an analysis by Evercore ISI.
In what might possibly be “the most self-serving research note ever,” analyst Glenn Schorr wrote that companies paying for research out of their own pockets, or “P&L payers,” generally underperformed last year. That came after “being much closer to parity before” MiFID II was implemented, Schorr said.