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Short Game

Recent analysis by the TIM Group (link: timgroup.com) shows that brokers with a short-term slant provided the best trading advice to fund managers in 2011. According to the survey, “contrarians, recommending shorts or bets that stocks would fall” came out as top performers.

As more tools that precisely track performance develop, brokerages and banks are looking for accurate measurements of the value of advice they receive. With only marginal performance improvements over passive investors, the sell side needs to up its game and provide a little more bang for the buck.

After all, today’s investor expects nothing short of the best services and advice – over the short and the long term.