{"id":7870,"date":"2020-06-30T11:12:47","date_gmt":"2020-06-30T09:12:47","guid":{"rendered":"https:\/\/www.emergers.se\/?p=7870"},"modified":"2020-10-16T10:10:28","modified_gmt":"2020-10-16T08:10:28","slug":"journalism_a","status":"publish","type":"post","link":"https:\/\/dev.emergers.se\/en\/journalism_a\/","title":{"rendered":"Why journalism brings a different view to equity research, and why fund managers love it"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"7870\" class=\"elementor elementor-7870\" data-elementor-settings=\"[]\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-129fe1b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"129fe1b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0e2522c\" data-id=\"0e2522c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-e33b497 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e33b497\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-inner-column elementor-element elementor-element-b7d0ce2\" data-id=\"b7d0ce2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-64c1101 elementor-widget elementor-widget-text-editor\" data-id=\"64c1101\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><span style=\"color: #ff0000;\"><strong>REPORT<\/strong><\/span> Few investors would disagree that it is becoming increasingly hard to gain a competitive advantage in the investment world.<\/p><p>Technology has made information much more readily available, and any new piece of information gets arbitraged away fairly quickly. Even reliable signals such as sell-side analysts\u2019 upgrades or downgrades get priced into the market within 30 seconds of their release. As a consequence, anyone trying to use publicly available information to make a decision is probably too late, as it will have already been factored into the price.<\/p><p>In response, fund managers are adapting and seeking new sources to try to gain an edge. They\u2019re tapping into expert networks, for example, where they can download information and insights from industry \u2018experts\u2019 including former senior executives. Technology itself is also providing another new type of edge. For example, some research firms are offering images of retailer\u2019s car parks to create a picture of how busy shops are.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-72b1d5e elementor-widget elementor-widget-text-editor\" data-id=\"72b1d5e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The problem is that many of these new, so-called edges are available to everyone, at a price. They are not proprietary and therefore become quickly adopted, thus diluting the advantage they provide.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-46bdae0\" data-id=\"46bdae0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3fb38bd elementor-widget elementor-widget-heading\" data-id=\"3fb38bd\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">We are Emergers<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-289551f elementor-author-box--layout-image-right elementor-author-box--align-left elementor-author-box--image-valign-top elementor-widget elementor-widget-author-box\" data-id=\"289551f\" data-element_type=\"widget\" data-widget_type=\"author-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-author-box\">\n\t\t\t\t\t\t\t<div  class=\"elementor-author-box__avatar\">\n\t\t\t\t\t<img src=\"https:\/\/dev.emergers.se\/wp-content\/uploads\/2020\/07\/JW-292x300.png\" alt=\"Johan Widmark \">\n\t\t\t\t<\/div>\n\t\t\t\n\t\t\t<div class=\"elementor-author-box__text\">\n\t\t\t\t\t\t\t\t\t<div >\n\t\t\t\t\t\t<h4 class=\"elementor-author-box__name\">Johan Widmark <\/h4>\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-author-box__bio\">\n\t\t\t\t\t\t<p>Equity research analyst and journalist<br \/>\n<a href=\"mailto:johan@emergers.se\" style=\"text-decoration : none; color : #000000;\">johan@emergers.se<\/a><\/p>\n<ul>\n<li>15 years as equity analyst<\/li>\n<li>8 years in company sponsored research <\/li>\n<li>Finance journalist at leading business weekly magazines<\/li>\n<\/ul>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-82a9981 elementor-author-box--layout-image-right elementor-author-box--align-left elementor-author-box--image-valign-top elementor-widget elementor-widget-author-box\" data-id=\"82a9981\" data-element_type=\"widget\" data-widget_type=\"author-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-author-box\">\n\t\t\t\t\t\t\t<div  class=\"elementor-author-box__avatar\">\n\t\t\t\t\t<img src=\"https:\/\/dev.emergers.se\/wp-content\/uploads\/2020\/06\/JM-300x280.png\" alt=\"Jonas Malmborg\">\n\t\t\t\t<\/div>\n\t\t\t\n\t\t\t<div class=\"elementor-author-box__text\">\n\t\t\t\t\t\t\t\t\t<div >\n\t\t\t\t\t\t<h4 class=\"elementor-author-box__name\">Jonas Malmborg<\/h4>\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-author-box__bio\">\n\t\t\t\t\t\t<p>Investigative and Business journalist<br \/>\n<a href=\"mailto:jonas@emergers.se\" style=\"text-decoration : none; color : #000000;\">jonas@emergers.se<\/a><\/p>\n<ul>\n<li>17 years of journalistic experience<\/li>\n<li>Business journalist for leading Swedish business weekly magazines<\/li>\n<li>PR-advisor<\/li>\n<\/ul>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-10323a1 elementor-widget elementor-widget-text-editor\" data-id=\"10323a1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ed55ea7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ed55ea7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-80311e7\" data-id=\"80311e7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ef3a5d0 elementor-blockquote--skin-border elementor-blockquote--button-view-icon-text elementor-blockquote--button-skin-classic elementor-blockquote--button-color-official elementor-widget elementor-widget-blockquote\" data-id=\"ef3a5d0\" data-element_type=\"widget\" data-widget_type=\"blockquote.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<blockquote class=\"elementor-blockquote\">\n\t\t\t<p class=\"elementor-blockquote__content\">\n\t\t\t\t\"Journalists use \u2018shoe leather\u2019 research \u2013 non-desk research where they go out into the world and talk to people.\"\t\t\t<\/p>\n\t\t\t\t\t\t\t<footer>\n\t\t\t\t\t\t\t\t\t\t\t<cite class=\"elementor-blockquote__author\">Johan Widmark, Emergers<\/cite>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/twitter.com\/intent\/tweet?text=%22Journalists+use+%5Cu2018shoe+leather%5Cu2019+research+%5Cu2013+non-desk+research+where+they+go+out+into+the+world+and+talk+to+people.%22+%E2%80%94+Johan+Widmark%2C+Emergers&amp;url=https%3A%2F%2Fdev.emergers.se%2Fen%2Fwp-json%2Fwp%2Fv2%2Fposts%2F7870\" class=\"elementor-blockquote__tweet-button\" target=\"_blank\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fab fa-twitter\"><\/i>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-blockquote__tweet-label\">Tweet<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/footer>\n\t\t\t\t\t<\/blockquote>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0d57aec elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0d57aec\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0cd6cfd\" data-id=\"0cd6cfd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cee4d99 elementor-widget elementor-widget-text-editor\" data-id=\"cee4d99\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>In seeking out new ways to generate unique information and insights, some savvy fund managers are turning to hiring journalists, who are skilled in uncovering hidden information and looking at publicly available information from a different perspective, in order to find a true proprietary edge in an increasingly competitive marketplace.<\/p><p><strong>Overcoming behavioural biases<\/strong><br \/>Journalists will never replace traditional fundamental analysts, but they provide fund managers with a view from a different angle. By using different sources, investment decision making can be made more objective. More specifically, journalists bring the following skills and traits to investment research:<\/p><p><strong>1. Different research<\/strong><br \/>Journalists tend to be a bit more resourceful when looking for information. They won\u2019t just be relying on typical channels that a research analyst will try to tap into such as management and experts. Journalists use \u2018shoe leather\u2019 research \u2013 non-desk research where they go out into the world and talk to people. They can reach out to customers, ex-employers and even ex-CFOs: anyone who can give them a more rounded view of a particular issue.<\/p><p><strong>2. Big picture perspective<\/strong><br \/>While many portfolio managers and analysts can get caught up in the minutiae of company fundamentals, journalists can bring a broader, \u2018thematic\u2019 industry or sector-wide perspective. Analysts typically go straight to companies, but journalists try and get a bigger picture perspective. They can step back, speak with many different sources and weave it into a larger narrative. They may, for example, look at the banking sector and consider what everyone in the industry is doing, rather than just focusing on one bank.<\/p><p><strong>3. Flexibility<\/strong><br \/>Journalists can be more receptive to interesting projects and different types of research. They are used to being thrown a different topic on a daily basis and asked to chase it down to find an angle or important lead they can write about.\u00a0<\/p><p><strong>4. Speed<\/strong><br \/>Journalists typically are able to discern the key issues relatively quickly. They are used to working to tight deadlines, even on major investigative projects where editors demand a result sooner rather than later to conserve limited resources.<\/p><p><strong>5. Persistence<\/strong><br \/>Journalists have normally faced a lot of rejection in their jobs &#8211; which makes them persistent. They can latch onto a small piece of information and dig deeper and deeper. Analysts, on the other hand, are more likely to wait for management to come to them with information rather than chase hard for information.<\/p><p><strong>6. Unique sources<\/strong><br \/>The best investigative journalists have their own sources of information. That includes industry and company contacts they have built trust with over many years; but also databases and information that few people know about or don\u2019t know how to access.<\/p><p><strong>Deploying a journalist<\/strong><br \/>But using journalists doesn\u2019t suit every fund manager\u2019s research process. If they don\u2019t know how to effectively use the journalist\u2019s skills, hiring a journalist as a researcher can ultimately be as effective as reading a newspaper. The fund manager needs to be clear about what they want from the journalist. While it is not yet a widespread trend, there are reports in the US that hedge funds are hiring reporters and even advertising on journalism jobs boards. With gaining an edge becoming increasingly challenging, savvy fund managers now recognise that there is more than one way to skin a cat. And that the journalistic way to present investment ideas is gaining both institutional and private investors&#8217; attention.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<div class=\"tmnf_excerpt\"><p>Six reasons why a journalistic view can attract the fund managers&#8217; attention to your company.<\/p>\n<\/div>","protected":false},"author":1,"featured_media":7859,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"spay_email":""},"categories":[32],"tags":[],"jetpack_featured_media_url":"https:\/\/dev.emergers.se\/wp-content\/uploads\/2020\/09\/iStock-1129342186.jpg","_links":{"self":[{"href":"https:\/\/dev.emergers.se\/en\/wp-json\/wp\/v2\/posts\/7870"}],"collection":[{"href":"https:\/\/dev.emergers.se\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.emergers.se\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.emergers.se\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.emergers.se\/en\/wp-json\/wp\/v2\/comments?post=7870"}],"version-history":[{"count":11,"href":"https:\/\/dev.emergers.se\/en\/wp-json\/wp\/v2\/posts\/7870\/revisions"}],"predecessor-version":[{"id":7992,"href":"https:\/\/dev.emergers.se\/en\/wp-json\/wp\/v2\/posts\/7870\/revisions\/7992"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.emergers.se\/en\/wp-json\/wp\/v2\/media\/7859"}],"wp:attachment":[{"href":"https:\/\/dev.emergers.se\/en\/wp-json\/wp\/v2\/media?parent=7870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.emergers.se\/en\/wp-json\/wp\/v2\/categories?post=7870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.emergers.se\/en\/wp-json\/wp\/v2\/tags?post=7870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}