HSBC's equity researchers appeared in a painful video and then they were fired
Remember the developed Europe equity research team at HSBC? It's greatly depleted since 26 researchers were cut in May and those who remained were reoriented towards emerging markets. However, if you want to refresh your mind, you can always watch some "painful" videos made by HSBC five months in an attempt to gain votes in the Extel Survey.
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A box-set of videos is visible here, but a version is also circulating on LinkedIn. There, Matthew Lloyd, HSBC's head of midcap research boasts that the team has "decades" of experience in producing "detailed, thought-provoking, different research," Robin Down, HSBC's senior banks analyst says HSBC's European banks research team is the most experienced on the street and Stephan Klepp HSBC's top industrials analyst says the team is differentiated by its global view.
Not any more. All three have since left the bank. Lloyd and Down were dispensed with in the recent cuts, and Klepp ran away to BNP Paribas. Only Kim Shapiro, the head of European equity research, who introduced the video and praised the team for its "deep bench of experience," remains.
Writing on LinkedIn immediately after the videos were made, Down said the process of recording them had been "painful", partly thanks to a grinding coffee machine and a visiting school party. Last week, Down posted that he was leaving the bank after 20 years and would be tending his garden while contemplating alternatives. Lloyd also said he was leaving last week and thanked his "merry band" for all their help during his long years there.
Unfortunately, HSBC seemingly wasn't alone in considering its experienced researchers surplus to requirement. Despite the videos, only one Developed Europe HSBC researcher was top ranked in the recent Extel survey: Klepp, who's now at BNP.
HSBC was, however, ranked 1st for research in the Middle East and North Africa, where it's efforts are now focused. It's a vindication of sorts.
HSBC didn't respond to a request to comment.
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