These are the most frequently asked and important questions about our Affiliate Research Platform.
What is the difference between bundled and unbundled investment research packages?
- are subscription packages that include research on a number of different asset classes, countries, sectors or companies with very different characteristics.
- mean clients may be buying research that is uninspiring or irrelevant. E.g. clients maybe purchasing research on pre-revenue, biotechnology or small mining companies – but never invest in those companies.
- often include reports written by a highly respected individual research analyst or team. Clients may purchase an annual subscription, only to find that an analyst or team leaves during the year.
- means the client purchases either individual investment reports or a subscription to an individual analyst’s research reports.
- means clients can ‘follow the talent’ and enjoy the freedom to purchase research that is both relevant and inspiring.
- means saying goodbye to ambitious pricing.
How would you describe your Affiliate Research Platform?
Our platform is an online marketplace allowing Professional Clients (as defined by the Financial Conduct Authority of the UK) to purchase independent investment research. Each research analyst is contracted to Hiddensee on a freelance basis and enjoys the freedom to determine the format, content, price and number of reports they publish.
MiFID II has forced investors to cut the number of firms that they procure research from, which limits access to a full range of analyst opinions.
Our platform helps solve this problem: clients can access talented analysts’ research reports without the burden of committing to bundled packages, which often include reports that are uninspiring or irrelevant.
How does your Affiliate Research Platform differ from other providers of investment research?
Our Affiliate Research Platform has a number of special characteristics:
(1) ‘Pay-as-you-go’ (PAYG): the research reports can be purchased on a ‘per report’ basis. This means clients only purchase what they actually need.
(2) High-conviction: the PAYG model encourages the analysts to write research reports with sharp verdicts on a particular sector, trend or company.
(3) Self-selection bias: the PAYG model attracts entrepreneurial analysts with a recognised market following and reputation.
(4) Direct contact with the analysts: typically, this service is included in the price of each research report. As our analysts are contracted on a franchise basis, the exact amount of time they devote to marketing and servicing clients varies.
(5) Independent: unlike investment banks, we only sell independent research. We do not distribute corporately sponsored research.
Who can purchase the independent investment research from your Affiliate Research Platform?
We are only authorised to sell research to Professional Clients, as defined by the Financial Conduct Authority (FCA) of the UK.
We are not authorised to sell to Retail Clients.
Professional Clients are either:
(1) Per se Professionals: employees of a regulated investment firm, or
(2) Elective’ Professionals: individuals who meet certain criteria about their wealth and/or investment experience. They must also agree to waive some regulatory protections.
Before buying any research, all new customers must ‘self-certify’ on our web site that they are a Professional Client, as defined by the FCA.
How can I start using your Affiliate Research Platform?
Simple. No need to log-in; anyone can use the search criteria to browse and select the reports. Add any reports you wish to purchase to the basket and proceed to ‘checkout’. Then:
- New customers: are prompted to ‘self-certify’ that they are a Per se Professional Client or a Elective Professional Client (as defined by the Financial Conduct Authority of the UK) before they can create an account and pay.
- Existing customers: are prompted to log-in and purchase the reports.
How can I purchase the investment research reports from your Affiliate Research Platform?
Customers can purchase the reports:
(1) ‘Pay-as-you-go’: similar to any e-commerce site, you can you use personal (or company) debit or credit cards. We accept Visa, Mastercard and American Express.
(2) Invoice in Arrears: customers can apply for an account and pay in arrears. This is particularly useful for firms with multiple users and / or locations.
(3) Subscription: customers can agree to subscribe to a single stream of research – i.e. all the reports published by an individual analyst.
Please e-mail us for more information about any of these options.
Do you charge Value Added Tax (VAT)?
Yes, the Government in the UK insists that Value Added Tax (VAT) must be charged when clients purchase investment research. We include VAT in the price of our individual reports. Our VAT number is 313249135.
Why buy investment research on a pay-as-you-go (PAYG) basis?
(1) Selective: MiFID II has led many professional investors to reduce the number of firms that they procure research from, which limits their access to the market and the full range of analysts’ opinions. These gaps can be now filled by ‘cherry picking’ individual research reports.
(2) High-conviction: the pay-as-you-go (PAYG) model encourages the research analysts to write research reports with sharp verdicts on a particular sector, trend or company.
(3) Cost Effective & Relevant: PAYG means saying ‘good-bye’ to ambiguous pricing, committing to expensive recurring costs and purchasing bundled packages that often include uninspiring and irrelevant research.
How is the price of the investment research reports determined?
MiFID II has created a period of fluid ‘price discovery’.
Each freelance research analyst has the autonomy to set the price of their own research reports, so they often vary.
The price of each report typically reflects the production time, the frequency of the report and the availability of competitive material. Prices may vary over time, as the analyst may feel that time sensitive publications become less valuable or may decide to test the price sensitivity of demand.
Analysts may use the ‘price on application’ option, where prospective clients need to contact us for details. This usually applies to infrequently published or special ‘deep-dive’ reports.
Can clients restrict the amount of purchases made by individual employees from within their own firm?
Yes, clients have the option of setting a credit limit per user or per firm. This can prevent employees from being ‘trigger happy’ when selecting which reports to purchase. Please contact us for more information.
Does Hiddensee Research have any potential ‘conflicts of interest’, which could taint the impartiality of the services you offer?
Independence research is the core principle of our business. We do not suffer any of the normal ‘conflicts of interest’ that question the integrity of most investment research. We do not offer corporate advisory work, any execution services or publish corporately sponsored research.
All our Affiliates agree (contractually) to ensure that their published research is independent before they join our platform. They must report any changes to their status as they work with us.
We have strict compliance controls in place to ensure adherence with the appropriate Financial Conduct Authority regulations, which mostly cover the prevention of market abuse and insider trading.
We are members of The European Association of Independent Research Providers.
Can clients have direct contact with the research analysts?
Yes. Typically, this service is implicitly included in the price of each research report. However, as our panel of research analysts work on a freelance basis, they determine how much time they wish to devote to marketing and servicing clients.
MiFID II has encouraged many research providers to make additional charges for direct contact with their analysts. We do not charge separately, which is a significant benefit.
How do you select your panel of research analysts?
We do not have a pre-set list of criteria and prefer to take a more holistic approach when accessing candidate’s suitability.
Our panel of freelance experts work on a revenue and cost sharing basis. We will only finance those up-front costs, if we believe an individual will write the dispassionate research reports that clients will want to purchase on a ‘pay-as-you-go’ basis. This aligns our interests with those of our customers’.
We are very focused on creating a reputation for quality, ‘high-conviction’ research that investors need and value.
Why is your business called Hiddensee Research?
Hiddensee is a car-free island in the Baltic Sea off the North coast of Germany. During the last century it became a retreat where intellectuals could think freely.
Hiddensee Research is a constellation of independent experts, who enjoy intellectual freedom to write dispassionate investment research. Like Hiddensee the remote island, we operate mentally away from traditional ‘sell-side’ thinking.