Detail from Ancient Greek black-figured dinos (wine-bowl) with the first chariot in the procession

Detail from Ancient Greek black-figured dinos (wine-bowl) with the first chariot in the procession
“Sophilos Dinos” (wine-bowl) showing guests arriving at the wedding of Thetis and Peleus. In the first car -Zeus and Hera, 2nd-Poseidon and Amphitrite. Source: British Museum (Wikicommons)

Wednesday, February 13, 2013

StarMine 2012 Industry Analyst Awards

Here are the top equity analysts : first, second and third places

Methodology:

StarMine objectively measures the performance of analysts based on the returns of their buy/sell recommendations and the accuracy of their earnings estimates. The 2012 stock picking awards for the United States are based on the 2011 calendar-year performance of recommendations. The 2012 awards for estimating accuracy are based on quarterly periods that reported between 01 April 2011 and 31 March 2012. (For most companies, this is FQ-Mar-2011, FQ-Jun-2011, FQ-Sep-2011 and FQ-Dec-2011.) Only analyst performance on companies that are based in the United States is included in the awards calculations.


DATA SOURCE StarMine's awards for the United States are based on the estimates and recommendations as recorded in the Thomson Financial I/B/E/S database. StarMine uses the GICS (Global Industry Classification System) for its industry definitions.



INDUSTRY STOCK PICKING AWARDS
Analysts are ranked according to their Industry Excess Return, computed from a portfolio simulation that measures each analyst relative to an industry-based benchmark. The top three qualifying analysts in each industry receive an award.




Calculation of Industry Excess Return: All analyst returns are calculated relative to the return on a market capitalization-weighted portfolio of all of the stocks in a given industry. For comparison purposes, StarMine builds a non-leveraged portfolio for each analyst based on his recommendations. For each "Buy" recommendation, the portfolio is one unit long the stock and simultaneously one unit short the benchmark. The result gives the analyst credit for the amount by which the stock outperformed the benchmark. "Strong Buys" get a larger investment of two units long the stock and two units short the benchmark. "Holds" invest one unit in the benchmark (i.e., for an excess return of zero). "Sells" are the reverse: long the benchmark and short the stock. "Strong Sells" get a larger investment of two units long the benchmark and short the stock. The portfolio return is opportunity adjusted to facilitate a fair comparison of analyst performance regardless of their coverage universe. The resulting portfolio is rebalanced each month and whenever the analyst adds coverage, drops coverage, or changes a rating.


Qualification Criteria: To qualify for a 2012 Industry Stock Picking Award, an analyst must have met the following criteria: (1) An analyst must have covered at least five stocks in a given industry throughout 2011. If an industry has fewer than 15 stocks, an analyst must have covered a minimum of three stocks or 1/3 of the stocks in the industry, whichever is greater. (2) An analyst's industry return must have exceeded the return of the relevant industry benchmark. That is, his Industry Excess Return must be positive. (3) An analyst must have delivered at least a 3-star performance on their overall coverage (i.e., for all industries covered), as measured by StarMine's Coverage-Relative Rating.
(Source: Thomson-Reuters)

Updated: 2016 link

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