Small Cap Consumer Research is a leading company-sponsored research services firm dedicated to helping small to mid cap companies in the retail, apparel and brand licensing segments shift equity research into a strategic asset. Our mission is to align with premier small to mid-cap, publicly-traded companies with equity market capitalization under $4 billion and deliver to them company-sponsored, independent, and differentiated Wall Street-grade equity research.
At the same time, we are providing institutional investors access to highly intelligent consumer analyst research. This allows “The Street” to gain a materially deeper understanding of the company’s investment “story” which, in return, drives higher visibility and returns.
Eric Beder, CEO & Award-Winning Consumer Analyst
Founded by award-winning consumer equity analyst Eric Beder, our company is well poised to lead the company-sponsored equity research space. As Mr. Beder says, “We believe the equity research model has materially shifted and we are the emerging answer for both corporate issuers and investors seeking visibility, deeper, more insightful, and impactful equity research coverage. We believe the Small Cap Consumer Research model is the future of consumer-sponsored equity research.”
Mr. Beder earned an M.B.A. from Walter A. Haas School of Business, University of California at Berkeley and a B.S. in economics from The Wharton School, University of Pennsylvania. He has covered the consumer space for more than 20 years, demonstrating a unique talent for understanding complex small cap stories, and effectively leveraging deep industry relationships in communicating investment ideas to both institutional investors and the media.
Mr. Beder has extensive media exposure, including appearances on CNBC and Bloomberg TV. He has also been quoted in the Wall Street Journal, Barron’s, Businessweek, Investors Business Daily, Forbes, WWD, Los Angeles Times, and the New York Times.
Why Pay for Equity Research?
We believe the company-sponsored equity research model is the wave of the future and will increasingly be the norm.
So, What Changed?
Equity research coverage levels are materially declining. Overall interest and quality of research by sell-side analysts is in free-fall, while “buy-siders” simultaneously need materially more help from analysts to deeply understand companies and invest with comprehensive intelligence in the small cap arena.
Some of the other changes include:
Recent MiFID II Compliance Impacting the United States – MiFID II compliance and implementation became effective in Europe January 1, 2018, and is projected to cut overall equity trading commissions by 30% (according to McKinsey). We therefore expect overall level of analyst (and coverage) to escalate in shrinkage—with an even greater impact on the small to mid-cap sector.
Worldwide Shift to Direct Payment for Equity Research – Further, with trade commission rates under relentless pressure, passive investing a key trend, and a worldwide shift to direct payments for equity research poised to imminently impact the U.S.—we believe economics for the sell-side to focus on small cap companies will only continue to deteriorate, leaving even premier small cap companies little incremental coverage opportunities.
Sell-Side Analysts Unwilling to Invest in Learning Complex Small Cap Stories – We believe, even for the small cap names that are covered, the “sell side” is doing only a cursory job of understanding complex small cap stories and effectively communicating the depth of those stories to institutional investors. More than ever, there is a need for high-quality, focused small cap equity research that provides an effective tool for institutional investors and offers higher visibility and returns for companies.
As with any research process, there are inherent conflicts. We minimize those conflicts while simultaneously maximizing company visibility and transparency for our clients. Our company receives no non-public company information, certifies all of the opinions expressed are ours alone, and maintains 100% editorial discretion.
We do not own or trade in the companies we provide research coverage to.
Contact us for more information about our consumer analyst research company and how we can assist you.