- Visible Alpha, a startup backed by five banks, is acquiring ONEaccess. The two firms help investors answer two key questions in the equity research world. What is your investment recommendation based on? And how valuable is your research?
Wall Street research analysts have lots of ways to communicate their opinions to investor clients.
They can say that a stock is a buy or a sell. They can be “overweight” or “underweight” a stock. They can be above consensus or below. They can be neutral or have a hold rating. But what are those opinions based on?
Visible Alpha, a Wall Street startup backed by banks including UBS and Morgan Stanley, is set up to help investors understand exactly that. Now the firm is acquiring ONEaccess, another startup that helps firms find corporate access events and track their consumption of research.
Visible Alpha aims to standardize the analyst models and forecast data that underpins those analyst recommendations like buy, sell, or hold. In effect, it allows analysts to show their work and for investors to see it and compare it.
“Research analysts spend a lot of time analyzing data, and they put that into their research, but for clients, they want to see that quantified,” Scott Rosen, the CEO at Visible Alpha, told Business Insider. “They’re saying: ‘Show me your underlying assumptions.'”
- Visible Alpha
ONEaccess helps investors track their research consumption, a key requirement with coming European regulations that will require investors to put a monetary value on the research they consume.
“Both companies have focused on optimizing the investment management workflow, but we’ve tackled different aspects of it,” Mike Stepanovich, the CEO of ONEaccess said. “By coming together, we are able to solve both sides of the equation for our clients, and we are already receiving positive feedback from them.”