History
Peter Sidoti, the Chief Executive Officer and a leading healthcare analyst for 20 years between Value Line, Drexel Burnham, Natwest Markets, and Schroders, formed Sidoti & Company, LLC in 1999 to address the dearth of research on companies not included in the S&P 500 or generating investment banking fees. The founding team identified a significant market of institutional investors willing to pay for traditional research focused on companies with small market capitalizations.
The firm originated as a small part of the research team at NatWest Markets in 1996, with five analysts initiating coverage of 30 companies with market caps below $300 million. The group moved to Schroders in July 1997 following the collapse of NatWest, and expanded to 12 analysts and 100 equities with $1.5 billion market caps or less. Schroders shuttered the operation in January 1999; in our opinion, the firm viewed small-cap research as a hindrance to its competition for investment banking business with larger corporations.
Sidoti & Company, LLC received its broker/dealer license from FINRA in May 2000, which allowed us to generate commissions from our institutional client base, and for our customers to pay for services using a more traditional method than soft dollar converters. In addition, our Trading Desk launched in April 2004; the lead sales trader boasts more than 30 years of experience. In August 2016 we formally introduced a Company Sponsored Research product that is of the same quality and has virtually the same content as our traditional research offering, except that there is no BUY/NEUTRAL rating system for a stock. There is however a two-tier risk rating system. The analysts providing company sponsored research are the same experienced Sidoti analysts producing our traditional research coverage
About Us.
Sidoti & Company, LLC is Wall Street’s preeminent provider of equity research generally focused on companies with market capitalizations of under $3 billion. We cover over 250 companies across a range of industries. The companies covered by our traditional research typically have a history of profitability, maintain strong balance sheets, and tend to have limited, if any, coverage by other Wall Street firms.
Our approach affords institutional investor clients a combination of high-quality research, a small- and micro-cap company focused nationwide sales effort, broad access to corporate management teams, and extensive trading support. We serve nearly 500 institutional clients in the U.S., Canada and the U.K., including many leading managers of portfolios with $200 million to $2 billion of assets. We believe that these asset managers are generally underserved by other larger brokerage firms that typically target larger managers.
Sidoti also hosts a fee-based biannual Emerging Growth Conference in New York, and is a provider of Company Sponsored Research.
We are a broker-dealer registered with the SEC and a FINRA member firm. We provide a broad range of securities-related services. In addition to our high-quality research, our sales and trading services are distinguished by prompt execution, a competitive commission structure and access to smart order routing that utilizes all available sources of liquidity. From time to time, we are invited to participate as an underwriter, dealer, placement agent or initial purchaser in securities offerings for issuers for which we provide research coverage. Given our knowledge of the companies we cover, we believe that we are able to contribute to these capital-raising transactions. We also assist our issuers with stock repurchase programs, block trades and organized (Rule 10b5-1) trading plans.