One of the factors for measuring sell side analysts' performance in an investment bank is the Institutional Investors Magazine survey. To sum up, the magazine has regional lists of the largest mutual funds, pension funds, endowments, etc. Hedge funds have their own separate list. They are known as the Institutional Investor 300 or Hedge Fund 100 lists and are ranked by the number of assets under management (in descending order). Every year, questionnaires are sent to the buy side analysts asking them which sell side analysts have been the most effective. The results are compiled and the top three research analysts of each industry covered are named as part of the All-America Research Team (in the US). The names are reported in Institutional Investor. Also mentioned are runners-up/up and comers.
There is an excellent article at briefing.com's Learning Center. It is targeted to inform an individual investor about the process. An important point is that an analyst's performance and compensation can be affected by this vote.
The goals in the survey are different based on the business models of the investment banks. Bulge Bracket firms may try to be Top 3 in all industries and regions. A boutique bank may desire to be top 3 in a particular sector. One large firm had developed a strategy where they would have a limited focus. They would be top 3 in the industries that had the most traded securities. Quite simply, the stocks that generate the most commissions. Another business strategy was to de-emphasize the regional ranking. The firm wanted to target the firms that generate the most trading revenue - hedge funds. Since they do not have the asset base of a Vanguard, Black Rock or Fidelity, their votes are usually watered down. Institutional Investor's survey is weighted by assets under management.
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