Buy side firms are hungry for information as more recent and more accurate data give them an advantage when deciding on investments. There are two main sources: the research analyst at a sell side firm and corporate clients i.e. the companies that are covered.
Access to the research analyst through meetings or phone calls is coveted. These interactions with the analyst allow the buy side to understand the thought process behind their recommendations. It is not the actual buy/hold/sell opinion that interests the fund. The meeting would be held with the PM or buy side analyst. During the last two years, there have been staff reductions in the research departments of mutual fund firms. The trend has been towards more reliance on the sell side analyst's ideas since some sectors are no longer covered. Outside of the financial centers (New York and London), research analysts make trips to different regions to discuss their ideas. In the centers, there is a critical mass of firms and the analyst can just take a taxi or train for a meeting. In a regional trip, the analyst may have five meetings in three cities in a day. This is called Analyst Marketing.
Corporate access comes in the form of meetings with important officers of corporate clients such as the CEO or the CFO. There are many formats. Sell side firms sponsor conferences for different sectors and/or regions. Many corporate clients are invited to speak at them and, if they desire, to hold meetings with investors. Another venue is the Non-Deal Roadshow. This is when corporate officials travel to a region(s) to tell their company story to their current and potential investors. They may also set up a Field Trip to a third site. For example, an oil company may have the investors visit a refinery or off-shore drilling rig to experience the business firsthand. These events are allocated by the sell side firm. Here is where the research salespeople spring into action and try to get their clients approved for attending the limited amount of events.
Both types of meetings are very important for client service and, hence, the broker vote.
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