At Water Tower Research, our mission is to bridge the information gap between companies and investors, while reaching a much broader and diverse group of investors, in comparison to the traditional and challenged equity research model.
We provide “Research for the Other 99%”, on a platform powered by Wall Street veterans that are knowledgeable and experienced to help investors understand key strategies, industries, technologies, and drivers impacting the companies we cover as well as their peers. Water Tower Research uses a broad portfolio of tools to communicate with investors, including a traditional research platform, in addition to innovative and proactive products and digital strategies, providing valuable and consistent information flow.
Our Mission Statement
Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.
At Water Tower Research, we have built a new and innovative platform designed to reach ALL investors using free-to-access modern digital distribution strategies leveraged on the insights from credible and experienced analysts. We focus on identifying key variables and drivers that are impacting companies and then help investors understand said variables with the objective of providing resources needed to make intelligent decisions. With the incumbent equity research model on Wall Street facing unprecedented challenges, we are building a new model to help investors and companies rebuild the information exchange on which fundamental investment strategies are based.
A Modern Approach to Research
The incumbent research model is based on the premise of keeping research and insights inaccessible to a significant majority of investors. The economics of the brokerage business have changed dramatically over the past decade, which has had the unfortunate effect of shrinking equity research budgets and putting significant strains on existing resources for both the sell-side and buy-side. At Water Tower Research, we are building a new and modern approach to equity research that is designed to operate and thrive in the new equity research landscape.
The concept of publicly-listed companies and investors using issuer-sponsored equity research gained significant incremental momentum in March 2020 when the National Investor Relations Institute (NIRI) released its proposed guidelines to members, stating “As MiFID II, commission compression and other technical and structural changes press asset managers and brokers to unbundle research costs, there is a growing likelihood that more listed companies, most notably micro-, small-, and mid-cap issuers, may lose sell-side coverage. The loss of such coverage, especially for smaller issuers, creates a disadvantage in the capital marketplace and reduces the visibility of such companies to investors.”
Our guiding principal at Water Tower Research is to help companies and investors resolve these issues and to leverage modern digital communications strategies that bring our experience and insights to not only larger investors with direct broker relationships, but also to the other 99% of investors historically blocked from accessing sell-side equity research reports and analysis.