Evolution rethinking research strategy

Brokerage group Evolution Securities has hired a UK-focussed banks analyst after disbanding its European coverage of the sector as tough times in equities markets force banks to rejig research strategy.
By The Newsroom
Published 19th Jul 2011, 10:53 BST

Ian Gordon, who covered British banks at Exane BNP Paribas, will join Evolution as head of banks research on August 1.

It marks a narrowing of focus on Britain for Evolution, part of holding company Evolution Group.

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The firm has cut about 30 jobs across its sales and research teams, whittling down overall headcount from around 200, after building up its European coverage in 2009, when many research staff joined from Germany’s crisis-hit Dresdner Kleinwort.

“We’ve got to be very realistic about the future of the business, and getting control of costs and knowing where we can get paid against a backdrop that seems to be the status quo for at least the next couple of years is key,” said Patric Johnson, who joined five weeks ago as head of distribution from broker ICAP.

Evolution may still look to add four to five more analysts to its 35-strong team this year, focussing on technology, media and telecommunications and consumer sectors, Mr Johnson added. He said the firm had taken “the pain early”.

Many of Evolution’s rivals, from small brokerage groups to big investment banks, have hired heavily in equities over the past two years. Some are also starting to cut back as revenues falter.

Barclays Capital, one of the most prominent recruiters in this area, recently cut 50 jobs globally in equities research, sales and trading.