Brokers adapt to generate trading ideas for hedge funds

The following article first appeared in AsianInvestor magazine, March 2007.Six years ago, nobody had even thought of inventing a research function that gave trading ideas to hedge funds. Since then, with hedge funds providing ever greater commissions, brokerages have cottoned on to the idea of having research analysts who think up inspired deal ideas for hedgies. The trade recommendations began as tweaking long-only ideas, which customarily model earnings growth leading to price/earni…