The All-America Research Team Hall of Fame, which honors analysts who have finished in first place at least ten times in their respective sector or sectors, welcomes two new members: Mark Schoenebaum of ISI Group and J.P. Morgan’s Michael Weinstein. Although they cover different sectors for different firms and have vastly different educational backgrounds, they do have one thing in common: Neither planned a career in investment research.
Schoenebaum, who follows biotechnology stocks and pharmaceuticals, was still a student at Baltimore’s Johns Hopkins University School of Medicine when he began to question his career choice. He decided to complete his studies before settling on his next move, and upon graduation in 2000 accepted a position as a biotech analyst at CIBC World Markets in New York. Schoenebaum was undaunted by his lack of financial experience because the job was only meant to be a digression. However, he quickly earned a reputation as a force to be reckoned with — and one very much in demand. Before joining ISI in 2010, he covered biotech for U.S. Bancorp Piper Jaffray; Bear, Stearns & Co.; and Deutsche Bank Securities.
The New York–based analyst debuted on the All-America Research Team in 2005, in first place in Biotechnology, and has held that spot ever since. In June 2011 he expanded his coverage universe and the following year captured third place in Pharmaceuticals/Major. Schoenebaum jumps to the top of that roster this year, for a career-to-date total of 11 team appearances — ten of them in first place.
Schoenebaum, 40, “is by far the most dedicated, detail-oriented analyst,” says David Simon, CEO and CIO of Twin Capital Management in New York. “He has one of the most unique approaches, as far as letting everyone know what the Street is thinking, by doing surveys with his clients.”
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Sales TeamOctober 8, 2013The All-America Trading TeamOctober 8, 2013America's Top Corporate Access Providers 2013October 16, 2013 That method also impresses Ray Lam of Palisade Capital Management in Fort Lee, New Jersey. “He frequently solicits buy-side opinions through e-mail surveys, to gauge investor expectations,” Lam says. “He is the hardest-working sell-side analyst I have ever seen in my 15-year career as a buy-side analyst.”
Although he came to investment research by default rather than design, Schoenebaum loves it. “I am constantly learning and being challenged by talking to people who have twice my IQ,” he contends.
This is an exciting time to be covering these names, he adds. “Many companies in the pharmaceuticals sector have gone from being investible dividend-yielding stocks to being really exciting companies that are working on or coming out with new drugs,” he says, while treatments in development at biotech outfits could prove “transformative.” Though neither sector is likely to maintain its current torrid growth rate, “their futures still look bright.” Many a client says the same about Schoenebaum’s.
Weinstein’s journey to equity research was equally unorthodox. He earned a degree in international economics at Washington’s Georgetown University in 1992, but at that point wasn’t quite sure what he wanted to do with his life. He accepted a position as an associate metals analyst at J.P. Morgan, thinking that would be a good way to spend a few years in New York while figuring out his next move. By the time he was ready to leave, in 1995, he had already greatly impressed his colleagues and the firm’s top brass. Clayton Rose, who was global head of equities at the time, offered to promote Weinstein to a senior research or sales position if he would stay.
“After a fair amount of diligence, I came back and said I’d like to cover the medical supplies and devices sector,” Weinstein recalls. He was attracted to the industry’s long-term growth potential, the chance to learn about new technologies and the opportunity to interact with leading clinicians. J.P. Morgan didn’t have dedicated coverage of those names at that time, so Weinstein was staking out new territory. “Turns out, I was pretty good at it,” he says.
That’s an understatement. Weinstein debuted on the All-America Research Team in 1998 and has appeared every year since. He is currently enjoying his seventh straight — and tenth total — visit to the winner’s circle in Medical Supplies & Devices.
The industry has changed a lot since he began covering it. “Companies that were growth companies in the past, today are struggling to grow and have had to find new ways to create shareholder value,” the 43-year-old explains. “End markets have slowed, owing to weaker demand in the U.S. and Europe, which has been a secular shift as more of the financial burden for health care spending has moved from employers to consumers.” The slowdown in developed markets is prompting many device manufacturers to search for growth in China, India and other emerging economies, he adds.
“Mike is deeply knowledgeable and a very good stock picker,” says Nancy Crouse, a Santa Barbara, California–based portfolio manager with Nuveen Asset Management. “He is backed by a solid team and is always very helpful.”
Noelle Grainger, head of Americas equity research at J.P. Morgan in New York (and a former member of the All-America Research Team, from her days as an Apparel, Footwear & Textiles analyst), has known Weinstein for some 15 years. “He is a very well-rounded and talented analyst and a natural leader in our research team,” she says.
The inclusion of Schoenebaum and Weinstein brings the Hall of Fame membership total to 54. In addition to the newest inductees, ten Hall of Fame analysts appear at No. 1 this year: George Staphos (Paper & Packaging), Bank of America Merrill Lynch; Meredith Adler (Retailing/Food & Drug Chains) and Andrew Lazar (Food), both of Barclays; A.M. (Toni) Sacconaghi (IT Hardware), Sanford C. Bernstein & Co.; Ed Hyman (Economics) and David Raso (Machinery), both of ISI Group; Andrew Steinerman (Business, Education & Professional Services), J.P. Morgan; David Adelman (Tobacco) and Ehud Gelblum (Data Networking & Wireline Equipment, Telecom Equipment/Wireless), both of behalf of Morgan Stanley; and Ivy Zelman (Homebuilders & Building Products), Zelman & Associates.
Three other Hall of Fame analysts rank this year, but not in first place: BofA Merrill’s Jessica Reif Cohen (Media), Deutsche Bank Securities’ Curt Launer (Master Limited Partnerships) and Steven Fleishman (Electric Utilities) of Wolfe Research.
Full results of the 2013 All-America Research Team will be announced tomorrow.
Get more of our research and rankings.
The All-America Research Team Hall of Fame Listed below are the members of the All-America Research Team Hall of Fame, ranked by the total number of times they finished in first place in their sector(s), and the firms where they worked at the time of their most recent top appearances. Edward Hyman Jr.,
ISI Group 34 Emanuel Goldman,
Paine Webber 15 Steven Milunovich,
Merrill Lynch 12 Cai von Rumohr,
Cowen and Co. 11 Dennis Leibowitz,
Donaldson, Lufkin & Jenrette
Securities Corp. 25 Jessica Reif Cohen,
Merrill Lynch 14 A.M. (Toni) Sacconaghi,
Sanford C.
Bernstein & Co. 12 Jeffrey Sprague,
Citi 11 Stephen Girsky,
Morgan Stanley 23 Ehud Gelblum,
Morgan Stanley 14 John Tumazos,
Prudential Securities 12 Andrew Steinerman,
J.P. Morgan 11 Jerome Gitt,
Merrill Lynch 22 Thomas Hanley,
UBS Securities 14 Gary Yablon,
Credit Suisse
First Boston 12 Richard Bernstein,
Merrill Lynch 10 Michael Armellino,
Goldman, Sachs & Co. 21 Jerry Labowitz,
Merrill Lynch 14 Ivy Zelman,
Zelman & Associates 12 Ernest Liu,
Goldman, Sachs & Co. 10 Joel Price,
Donaldson, Lufkin & Jenrette
Securities Corp. 20 Lee Seidler,
Bear, Stearns & Co. 14 David Adelman,
Morgan Stanley 11 John Mackin,
Morgan Stanley 10 Jack Salzman,
Goldman, Sachs & Co. 20 George Staphos,
Bank of America
Merrill Lynch 14 Joseph Bellace,
Merrill Lynch 11 J. Kendrick
Noble Jr.,
Paine Webber
Mitchell Hutchins 10 Joseph Ellis,
Goldman, Sachs & Co. 19 Barry Good,
Morgan Stanley 13 Steven Fleishman,
Bank of America Merrill Lynch 11 Katharine Plourde,
Donaldson, Lufkin & Jenrette
Securities Corp. 10 Richard Sherlund,
Goldman, Sachs & Co. 17 Jeffrey Klein,
Kidder, Peabody & Co. 13 Elaine Garzarelli,
Lehman Brothers 11 Mark Schoenebaum,
ISI Group 10 William Young,
Donaldson, Lufkin & Jenrette
Securities Corp. 17 David Raso,
ISI Group 13 Jonathan Goldfarb,
Merrill Lynch, Pierce, Fenner & Smith 11 William Siedenburg,
Smith Barney, Harris Upham & Co. 10 Robert Farrell,
Merrill Lynch, Pierce, Fenner & Smith 16 Meredith Adler,
Barclays 12 B. Alexander Henderson,
Citigroup/Salomon Smith Barney 11 Harold Vogel,
Merrill Lynch 10 Patricia McConnell,
Bear, Stearns & Co. 16 Harvey Heinbach,
Merrill Lynch 12 Andrew Lazar,
Barclays 11 Michael Weinstein,
J.P. Morgan 10 Kenneth Abramowitz,
Sanford C.
Bernstein & Co. 15 John Hindelong,
Credit Suisse
First Boston 12 Jay Meltzer,
Goldman, Sachs & Co. 11 Robert Cornell,
Lehman Brothers 15 Curt Launer,
Credit Suisse
First Boston 12 John Rohs,
Schroder Wertheim & Co. 11
