Investment Banking Going beyond the numbers in institutional investment strategy

Along with the relationships that lead to a better understanding of the “why” behind a company’s decisions or financials, Truist Securities analysts also cover companies that are underrepresented by other firms. Many research firms focus solely on large-cap companies, which leads to a lack of research on a high percentage of publicly traded stocks.^{Disclosure 2}

While Truist Securities research analysts cover some of these same large-cap companies, they also provide research on many small and mid-cap firms. “That puts us on a short list of true experts covering these small and mid-cap companies,” Stroth says.

That’s critical not only for institutional investors who increasingly want diversified holdings or to better understand the up-and-coming competitors in each industry, but also for the companies themselves who want their smaller organizations covered by more research analysts to educate investors, generate interest in the company, and broaden the shareholder base.

This expertise in companies outside large-cap firms is critical. For example, institutional investors have increased their stake in early-stage firms as they seek new ways to generate alpha.^{Disclosure 3}

Ultimately, information is important whether institutional investors are looking to buy or sell shares in companies. For some, a data point can confirm a decision to exit, while for others, it can push share prices down to an attractive entry point to buy.