Steven Fleishman can still vividly recall the excitement and trepidation he felt when, at the tender age of 24, he became the lead utilities analyst at Kidder, Peabody & Co. Fleishman, now 42 and covering the industry for BofA Merrill Lynch Global Research, knew that being promoted so early in his career would either make or break him.
“It was a perfect opportunity for me to crash and burn,” Fleishman told Institutional Investor in October, the same month in which the ten-time top-ranked analyst was inducted into the All-America Research Team Hall of Fame. Fortunately, he had luck on his side; his promotion neatly coincided with industry deregulation: “Suddenly, being new wasn’t such a bad thing, because the sector was now new to everybody.”
Fate rarely intervenes to level the playing field for analysts just beginning to publish research. Instead, in addition to keeping abreast of changes in markets, macroeconomic environments, industry regulations and corporate strategies, these novices have to overcome client skepticism about their abilities and level of understanding. For some, the process can take years; others display a talent that catches the attention of money managers almost immediately. Each year when II asks investors to tell us which equity analysts deserve to be tapped for the All-America Research Team, we also ask them to identify the up-and-comers — analysts who have been publishing research for less than three years — who seem destined for greater glory. We tabulate the votes and declare these analysts the Rising Stars of Wall Street Research.This year’s class is particularly noteworthy because many of them began their publishing careers when the financial world was imploding. The summer and fall of 2008, when we were polling for that year’s survey, was hardly an optimum time for anyone to step up and say, “I want to publish equity research!”....