How does WR Hambrecht + Co approach research? Hasn’t the whole model of Wall Street research been discredited?

We feel strongly that research plays an integral role in the success of our business; we just approach the process in a very different way. We use research to handle very specific tasks, as we attempt to achieve our ultimate goal, making the buyer and the seller in a deal look smart.

As a lead managed underwriter, we use research as part of our investment decision making process, not only to ensure the quality of investment, but also to provide the market with the element of sell side research that we feel is fundamental: a twelve month earnings model. For both the issuer and the purchaser, we’ve committed ourselves to providing transparent models that break down the essential data that the marketplace values most highly. While other investment banks continue to sell the capabilities of their own research analysts, we feel strongly that the opportunity for an inherent conflict of interest is just too powerful in the traditional model. Instead, we rely upon truly independent research providers to add their expertise to the marketplace.

We organize our research around broad thematic trends, rather than on specific companies or sectors. These themes tend to lead us to disruptive companies, products and innovations that provide investors with opportunities that may not be readily apparent. We have also chosen a small number of forward thinking partners who approach research differently as well:

• Virtua Research: We provide access to Virtua's interactive research models. Virtua has the largest database of financial models that allow investors to change key assumptions and estimate intrinsic value. This innovative tool represents the future of sell side investment research.

• Morningstar Equity Research: We provide our retail clients access to this premium research product, which covers over 2000 individual companies. Morningstar uses a disciplined consistent approach to equity research that is based upon fundamental cash flow analysis.

• Motley Fool: We’ve worked closely with the Motely Fool to harness the power of their investment community to find great investment ideas. Motley Fool is leveraging the power of community to find interesting opportunities.

• Decision Economics: We have worked closely with Alan Sinai’s consulting group in order to gain knowledge on broad financial and economic trends.