Independence Pays: Matrix Rocks Analyst Rankings
Maybe there was something to the idea of creating independent research firms. Free of investment banking conflicts, the thinking went, these firms would be able to pick stocks based on nothing but raw analysis. One of these firms created in the wake of Eliot Spitzer’s landmark settlement with Wall Street firms, Matrix USA, built a business around a concept called Economic Value Added, which is nothing but a company’s return on capital less the cost of that capital. Seems to have worked, too: In the latest rankings by Bloomberg, Matrix is the top analyst in 580 of the 1,027 stocks it follows and holds one of the top three spots in 870 stocks.
Top-Ranked Analyst Unknown But Unbeaten [Fortune]
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