EMAIL DETAILS

Eric D. Schwerin
Rosemont Seneca Advisors, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com <x-msg://59/eschwerin@obblaw.com>
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> Begin forwarded message:
>
> From: "Earlywine, Michael" <mearlywine@burnhamfinancial.com>
> Subject: Buy Side interaction with Brokers 101
> Date: October 1, 2015 at 6:34:08 PM EDT
> To: "dstorino@fidelityconsultinggroup.net" <dstorino@fidelityconsultinggroup.net>
> Cc: Eric Schwerin <eschwerin@rosemontseneca.com>
>
> Donnie,
>
> Sorry for the delay but I think this is going to help. I suspect the progression is first to get a meeting with Joe for me to sell Burnham and our content. If needed we bring in the Blueshift team to sell their unique research.
>
> A service we use called big dough says the Achievement (it looks like the old Peak 6 group, so I hope it’s the same firm) paid over 6mil dollars in commission over the last 12 months. Granted this is down 30% from the previous 12 months but that is still a lot of commission dollars to work with.
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> I will send out the full big dough report for you to have a look at.
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> Call me after you have had time to look this over and let’s talk about a strategy to get that first appointment.
>
> Happy hunting!
>
> MJE
>
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> Research for Commission dollars
>
> Notes/Changes
> This is the primary way Wall Street gets paid for research they provide the buys side.
> · Brokers provide research and money manager trade through their desk to pay for it.
> · As a broker we love this model because if we do a good job and cover the account well, we can often extract more commission dollars than the account intended to pay for.
> · Range - $25k to $500k to millions depending on the total commission paid to the street and the type of product.
> · Pushback –
> o I have too many brokers already
> o We want to see the research first for a while
> o I don’t have the budget
> o I have too much going on and I can’t focus on something new
> · Reply
> o There is always room for a broker who actually adds value
> o How can you afford not to know what Burnham is putting out, as this thing gets traction – and it will – you need to be there from the start to help shape it in a way the benefits you the most!
> o “Early in the process we are not worried about budget, we can grow with you, open accounts and do a couple of trades and lets figure it out together”
> o And while managers are hesitant to tell their traders where they have to trade it is very common for them to tell a trader…get this broker involved I want to start getting their stuff – when I was on the buy side just a year ago we often started a guy at $25k just to pick a number but $50k to $100k is when the fun starts.
> · NOTE: Most desks have a certain % of their trades that are NOT tied to specific research ideas. This “agency” flow is usually sent to brokers in an effort to get best execution and can be “directed” to a broker for example, in return for our morning note. We have experienced traders and all the right systems to get the job done.
>
> This is very generic and is meant as background on how the traditional sales process works. When you have personal relationships, the “ask” usually becomes how do I justify turning your broker on, how do I show some value.
>
> Burnham’s Products.
>
> · Our morning note is a little different than the usual product out there, short and sweat, with a sarcastic tone that traders seem to like!
> · Monthly Trend Tracker - a joint venture with Blueshift research. Great look at the consumer, plenty of insight and touches about 25 different companies every month!
> o We have the ability to add customer questions to this monthly report – very cool option and something I doubt you will see with any other broker!
> · Washington Note: bi-monthly look at Washington and how the D.C. world affects our economy
> o This kind of service sells for $50k - $125k a year from other providers. Admittedly our effort is not as detailed as the other products but I think there is an opportunity to add calls or meetings to the service and still demand a premium price.
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> Burnham Partnership with Blueshift!!!
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> Blueshift Research will provide its clients with a unique value proposition through its pattern-mining research. We will focus our energies on asking the right questions, gathering information from a variety of independent sources, and finding anomaly pieces of data that are representative of signals rather than noise.
> · 150 reports a year, all ideas come from their clients (means that you are getting research that other money manager find important! Can’t emphasize this enough, it’s like a free look into other managers ideas)
> ·
> Blueshift has tried to get into Achievement for Years!! No luck so far
> · There is every chance that without a sponsor they (Achievement) have never given the product a serious look!
>
> It will be easier to walk you through this over the phone. I am also sending a description of Achievement to you in a separate email. I can walk you through how to read that too.
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> MICHAEL J. EARLYWINE | Managing Director Institutional Trading
> Burnham Securities Inc. | 40 West 57th Street | 28th Floor | New York, NY 10019
> 212 603 7586w | 917 804 6422c |