In a move to appeal to long-only asset managers, Nomura has unveiled its US Conviction Buy List, a group of US-listed stocks, which the firm expects to outperform the S&P 500 index over a 12-month period.
The list is managed by Nomura’s Head of US Equity Research, Michael Rietbrock, and Michael Lean, deputy director of US Research, highlighting the best long-only ideas generated by the firm’s fundamental equity research department.
“We are excited about the launch of our Conviction Buy List, and believe it will further validate Nomura’s best-in-class research offering,” states Rietbrock. “We have built a team of some of the best analysts on Wall Street and are focused on effectively delivering their highest conviction ideas to our clients.”
Nomura’s US Conviction Buy List will typically consist of 10 to 25 stocks, and will be rebalanced quarterly to achieve equal weighting in connection with the addition and / or deletion of any stocks. Each stock must have an average daily trading volume of at least $5 million, calculated over the preceding six months.
Securities on the inaugural US Conviction Buy List are as follows: Cablevision (CVC), Dover (DOV), Goldman Sachs (GS), Limited Brands (LTD), Marriott International (MAR), Maxim Integrated Products (MXIM), News Corp (NWSA), PetSmart (PETM), PNC Financial Services (PNC) and Viacom Inc. (VIAB).
Commenting in the same release,, Ciaran O’Kelly, Nomura’s Head of Equities, Americas added, “We are focused on building an idea house with Wall Street’s best talent; closely aligned with Nomura’s global sector strengths. The US Conviction Buy List highlights our best investment ideas for clients and demonstrates to the market that we are committed to differentiating ourselves through the generation of uniquely actionable and alpha-generating ideas.”
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