The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. 2018 was a difficult year; however, the index still outperformed its comparative London indices, falling 10.0% to 393.2, compared with -13.0& and -18.2% for the Allshare index and the AIM index, respectively.
Mike Sheen explains ‘The requirement to ‘unbundle’ research costs from the rest of sell-side services is thought to have taken a toll on research coverage and therefore liquidity as a result of reduced trading volumes.’ Asset Mangers have turned to cutting the number of brokers in order to reduce cost and this has led to a reduction in stock liquidity.
Hardman & Co provide an understanding as to what companies can do in response to the changing research environment.
This week Hardman & Co analyst, Steve Clapham, made a fantastic contribution to Mello London; a unique Investor conference offering access to 50+ high-quality growth companies, outstanding keynote investment industry speakers from whom to learn, and the opportunity to network with fellow private investors.
Yesterday, Hardman & Co analyst Nigel Hawkins presented on the topic of market disruption to a full house at Mello London.
Our mining analyst, Paul Mylchreest updates London South East with the change in demand for Lithium, in part driven by the growth of electric vehicles.
Liquidity – a key measure of investors’ ability to buy and sell shares without significantly moving the price – has fallen 16% on the London Stock Exchange Main Market since MiFID II came into force, according to Hardman & Co analysis.
Lex today feature new Hardman & Co findings which highlight both the receding liquidity in mid-cap AIM stocks and the reduction in research coverage.
Mike Sheen of Investment Week features Hardman & Co MiFID II Monitor data highlight drop in liquidity and research coverage.