High Line Advisors LLC

management ideas for banks and broker-dealers

Equities Content and Context

with 3 comments

We are launching a series and associated white paper entitled “Equities Content and Context: Comparative Business Models Among Banks and Broker-Dealers.”

“Don’t get involved in partial problems, but always take flight to where there is a free view over the whole single great problem, even if this view is still not a clear one.”  —  Ludwig Wittgenstein
“What you see is what you get.” — Flip Wilson

Article at a Glance

Declining revenues and pending regulation are forcing firms to review their Equities businesses. Competing Equities businesses differ greatly from firm to firm in the breadth of capabilities. As a result, some firms may be unable to access revenue pools that make competitors appear more successful in comparison. A closer look at how a firm’s strengths appeal to specific client segments can reveal why an Equities business is underperforming relative to the market or its peers. An understanding of “boutique” models can provide insight for large banks and smaller broker-dealers alike, whether they are contemplating further investment or a pull-back.

The value of an Equities business to investors is largely dependent on the capabilities of the firm in which it operates. Despite an advantage in breadth of capabilities, large firms that fail to deliver a wide range of products may end up with boutique-like results. Small firms forced to compete on a limited product set can still distinguish themselves in specific market segments.

This article explores the following questions as they relate to managing an Equities business:

  • What do investor clients really want?
    What are the products, resources, and services that are most valuable to their business?
  • Why does the firm context matter?
    How can other business lines contribute to the success of an Equities franchise?
  • What constitutes a “full-service” Equities business?
    What do the largest, mature Equities businesses offer to clients? What additional revenues do they capture?
  • How is client value converted into revenue?
    How are products positioned as client solutions?
  • How do Equities businesses align with investors?
    Which clients is the firm most likely to attract?
  • What are the partial or “boutique” Equities business models?
    How do firms successfully differentiate? How can a regional or sector-based strategy succeed?
The article and its diagrams will be provided here in subsequent posts. If you can’t wait for the serialization, download the full article here.
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3 Responses

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  1. […] [Part 2 of Equities Context and Content] […]

  2. […] [Part 3 of Equities Context and Content] […]

  3. […] [Part 4 of Equities Context and Content] […]


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