Moulding investigative analysts; It’s vital to have that sense of the ground: Credit Suisse boss

June 4, 2014 Leave a comment

PUBLISHED JUNE 02, 2014

Moulding investigative analysts

It’s vital to have that sense of the ground: Credit Suisse boss

KELLY TAY

KELLYTAY@SPH.COM.SG   @KellyTayBT

‘Instead of looking at quarterly numbers, (we should think about) what’s going to happen in the next three, five years . . . (to) tell clients something they don’t know.’
[SINGAPORE] It’s not every day that an analyst concedes that the bulk of financial research in existence is merely “noise”, with not much intrinsic value. But Stefano Natella, Credit Suisse’s head of equity research, is not your typical analyst.

With a penchant for existential questions – “I like that philosophical question (about) why research exists” – Mr Natella is keen to change the way clients view, seek out, and pay for financial analysis.

“I’m very candid (about this) – I don’t think there’s a lot of value in making comments on earnings. Or the value (expires) two minutes after it has been reported,” he tells The Business Times in an exclusive interview.

He uses an example from the telco sector: “If you give me the press release of SingTel’s quarterly earnings, I can write you two pages of a research report saying (its performance was) slightly ahead of market (expectations), and it looked very good in this area, and clients paid (this amount) of fees, and so on. I may know very little about SingTel, but I (could do it reasonably well).

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About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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