EDGE Research & Consulting Limited is the leading provider of Investment Research in Bangladesh. We provide timely, differentiated and intuitive research aimed at answering the most critical questions in the investment process. While we maintain our own analytical process, we recognize that each firm has its unique framework for assessing investments; our key value addition is helping clients leverage our understanding to solve their problems using their own frameworks.
Since its inception in January 2018, the company has grown rapidly and now has 18 international fund managers as clients, including some of the biggest global asset managers with trillions of dollars in assets under management.
Our core services include:
- Equity Research: We provide full-spectrum research on key blue chips listed in the Dhaka Stock Exchange to frontier/emerging market-focused funds. Our coverage captures >90% of the foreign investment in the broad index, including key sectors like financials, pharmaceuticals, telecommunications, consumer goods etc. We are bottom-up focused, and our specialization is in long-term high conviction ideas built around identifying incentives, pricing power and governance.
- Economics: We also provide macroeconomic updates blending top down and bottom up approaches. Reports include short economic updates, budget analysis, monetary policy analysis etc. We use macroeconomic research primarily as an overlay on our bottom up work.
- Bespoke Research: For clients with specialized needs, we can provide bespoke research services in our areas of expertise. Our sector strengths are in financials, telecommunication, pharmaceuticals and cement. We also have a good understanding of the payments and fintech space in Bangladesh.
- Corporate Access: In addition to research services, we provide access to corporates, economists, subject matter experts via conference calls, reverse roadshows etc.
- Equity Fund Managers – EDGE is the top equity research provider in Bangladesh. We believe we are the primary go-to guys on all key stocks for leading foreign institutional investors in Bangladesh.
- Foreign commercial banks and financial institutions – Institutions who have exposures in Bangladesh through USD loans or Letters of Credit guarantees subscribe to our Research to remain up to date on economic and banking sector developments. The key value addition comes from our understanding of the underlying numbers and identification of risk exposures that are easy to miss. We provide both broad outlooks and insights on specific companies where the underlying LC exposures reside.
- Foreign Direct Investors – International companies trying to take direct exposure in Bangladesh by setting up factories or acquiring an existing player can leverage our research and knowledge. We remain selective and work only in areas of strength.
- Top-down and bottom-up synthesis to draw unique insights: In all our coverages on economy, sectors and individual companies, the main differentiation comes from channel checks, speaking to customers/competitors, and obtaining insights from industry experts, which we then use to draw a picture capturing not just individual sectors, but also the broader economy as a whole. Analysts at EDGE are intuitively bottom up focused but over time, we have learnt to apply traditional bottom up approaches to macro questions.
- Focus on qualitative factors complements quantitative analysis: Data in frontier markets can have integrity issues, which means analysis based purely on this data can be problematic. We spend a significant amount of our time trying to verify the numbers presented to us. In general, we prefer to base our analysis on qualitative factors that drive the quantitative numbers.
- Following the pareto principle to concentrate only on what matters: We believe in the pareto principle. We try to identify the most important drivers for economy or companies and spend all our time and effort to make an educated hypothesis on the direction of those drivers. This prevents us from avoiding the noise and distraction that does not move the needle.
- Risk focus makes us continuously monitor factors that can break our hypothesis: Typical investment research relies on establishing a position followed by daily reminders on why this is the correct position. We follow the opposite approach. In our view, once a position is established, what adds value is why the position could be wrong (risks). Hence, in our subsequent research pieces, we are more proactive on flagging downside risks for Buy rated stocks and upside risks for Sell rated stocks. This can lead to some counterintuitive “news flow”, but we believe this approach helps our users make better decisions.
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For additional information about EDGE and the investment opportunities we offer our partners and clients, please contact us.