Matthew Yates & team, BofA Merrill Lynch Global Research
The buy side says: “Consistently high quality of research.”
Vaulting from third place to first is the BofA Merrill Lynch Global Research quartet conducted by Matthew Yates. “Matt’s great stock recommendations are aplenty, but if we were to give one example, we would highlight his underperform ratings on the solar names, which were supported with plentiful in-depth analysis,” explains one buy-side enthusiast. In January 2011 the London-based team, which tracks 41 stocks, argued that wind- and solar-power companies remain heavily dependent on government subsidies — not a good place to be when governments are trying to reduce deficits. Specifically, they reiterated their underperform ratings on Germany’s SolarWorld (originally downgraded in November 2008 after its unsuccessful attempt to purchase General Motors Co.’s Opel car brand) and on Denmark-based Vestas Wind Systems (lowered in April 2010 on declining demand and falling prices). Last year those stocks plunged 56.5 percent and 64.8 percent, respectively, while the broad market fell 12.2 percent. Yates, 29, joined Merrill Lynch in 2004, after graduating from the London School of Economics with a bachelor of science degree in economic history. “He excels in market timing and proactive, contrarian calls,” affirms another booster.