Research shrinkage

Good piece in the Boston Globe this morning rightly pointing out that equity research is becoming more and more of a commodity. Despite all the settlement noise, the industry is past a cusp: fund managers are relying less and less on external equity research, especially of the brokerage-based sort. While that trend has been in place for more than a decade — it was happening when I was an analyst — there is, for obvious reasons, a big push now to complete the shift.