Cogent Consulting LLC and Tamale Software, Inc have created an all-in-one solution to both manage and document the value of equity research.
The new solution makes it possible for institutional investors and hedge funds to both manage and document the value of equity research generated by brokerage firms and boutiques, by enabling
Tamale's RMS (Research Management Solution) to seamlessly feed information into Cogent's ResearchTrak and HedgeTrak broker review and voting systems.
This announcement is particularly relevant in light of the SEC's interpretative statement issued last week, which requires money managers, if they want to use soft dollars, to "determine in good faith that the commissions they pay are reasonable in relation to the value of the brokerage and research services they obtain."
US money managers last year paid more than USD 11 billion in commissions for proprietary or bundled trading and research services, plus more than USD 1 billion for third party services, according to a recent report by Wall Street consulting firm Aite Group, LLC.
"The Tamale-Cogent integration makes it easy for money managers to comply with the SEC's 'good faith' test," said Robin Hodgkins, CEO of Cogent, based in Summit, NJ. "In the course of normal activities, analysts capture their research in Tamale, and then evaluate its contribution using ResearchTrak or HedgeTrak when voting quarterly or semi-annually on how to allocate trading commissions to sellside brokers and third party research firms."
"Tamale and Cogent are the leading vendors in their respective areas," added Mark Rice, CEO of Tamale Software. "This combination provides a best of breed solution for a fund to both manage its research to make better investment decisions, and use the research data to identify brokers providing the most value."
ResearchTrak/HedgeTrak is regarded as the leading tool used by buyside traders, portfolio managers and analysts for reviewing and allocating trading commissions. Tamale RMS is the industry leader for managing proprietary research and enables managers and analysts to organize and collaborate on their research, generate ideas, and find what they need quickly. Collectively, Tamale and Cogent serve a significant number of institutional investors and hedge funds around the world who manage a total of more than USD 2 trillion.