Thursday, July 12, 2012

Infosys- With Love from I'm_So_Smartly_Dumb sell side Analysts:)

I remember around 2011 year beginning I was meeting some very very big fund managers (assume among top 5 in AUM), and was discussing with them my bearish view on IT sector specifically Infosys. Since I was representing a small brokerage, they brushed me aside saying they have big brokers lined up who can explain the Infosys to each letter and comma.
(Btw funny thing was that my own firm was firmly against that bearish view and my analyst, better if I don't say anything:) )
 This same discussion, I had with other fund managers as well who were paid to serve their unit holders but instead served the brokers, their masters and own ego's:)...such is the nature of the industry.....I love analysts, specially sell side, who have got it once right (luck, coincidence, brain ...or whatever) and then  they get their bias so entrenched that it stinks of mediocrity at times. If you notice beginning of 2011 Infosys has 99.99% (as corrected by an old friend) of analyst rating it Buy....i mean can it get any more contrarion...when the whole I'm-So-Smartly-Dumb community of analyst (there were some exceptions I know) are on one side, its easy to see whats the same funds who have kept Infy as their highest weight must be having nightmares...
I still don't get it how do these fund managers (majority I m saying) get the right over money of common public to invest , when all they do is follow the herd:)

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