One such individual, reports Staff Writer David Lanchner in “Fortress Borsa” (page 35), is Massimo Capuano, chief executive officer of the Borsa Italiana since its privatization in 1997. Defying conventional wisdom, which holds that consolidation is inevitable among Europe’s stock exchanges, the former McKinsey & Co. consultant is spurning merger overtures while attempting to strengthen the second-tier exchange’s competitive position through diversification and upgraded technology. Capuano isn’t rejecting all forms of consolidation. He’s eager to link his state-of-the-art clearing and settlement operations with those of other European markets to bring down costs. But he’s convinced that remaining independent will enable him to cut a better deal on cooperation, while maintaining the Borsa’s dominance in the Italian financial market.
Independent thinking is the hallmark of shrewd investing. In this issue we spotlight some of the shrewdest and most independent minds in the investment business in our third annual ranking of the most highly regarded research analysts at Europe’s institutions (“The Best of the Buy Side,” page 22). After three years of horrid returns, investors finally had something to smile about in 2003, and the nearly 17 percent rise in the MSCI Europe index gave the two dozen analysts listed here a chance to shine. In-house research is becoming ever more important for many institutions, thanks in no small part to the taint that has enveloped sell-side firms. Meantime, the continuing wave of corporate scandals -- from Enron to Parmalat -- has only increased the value of insightful analyses that can penetrate obfuscation and deceit.
It requires a strong backbone and a defiantly independent streak to take on conventional wisdom -- and unconventional deceptions -- and make shrewd and timely investment picks. Happily, a growing number of analysts are doing just that.
