youDevise and First Coverage Merge to Form Global Trade Idea Network for Institutional Investors

Wall Street & Technology - 18 March 2011

By Melanie Rodier

youDevise Ltd. of London and First Coverage of Boston, providers of alpha capture networks for financial markets, are merging into a single entity, forming the first comprehensive global network for institutional investors and brokerages.

youDevise and First Coverage market online services that enable institutional investors to receive short- and long-term trade ideas from their brokerage firms, making it easier for money managers to identify ideas with real value, they said in a release.

The combined company, which will operate under the youDevise name, serves more than 150 institutional investors, including major hedge funds, traditional money managers, and specialist alpha capture funds, and more than 560 sell side firms, from the largest bulge brackets to smaller boutiques. Together, the two platforms transmit more than 2,000 ideas a day, up 60% from a year ago, on stocks primarily traded on markets in the US, UK, Europe and Asia.

youDevise launched its Trade Idea Monitor (the TIM) in 2005 and First Coverage debuted its eponymous service in 2006. Integration of the platforms is expected to be completed in 2011, with the best features of First Coverage becoming part of the TIM. Until then, users will have continuous access to their service of choice and will be updated when new enhancements are released.

Investors in the merger include a syndicate of venture capital firms comprised of Commonwealth Capital Ventures of Boston, GrandBanks Capital of Boston, and JLA Ventures of Toronto. All three were original investors in First Coverage.

The merger will give money mangers access to brokers with specialties in all developed and emerging markets. The merger will eliminate the need for brokers to use multiple systems and help reach a greater number of clients. For both, the merger will increase 24/7 sales and support through youDevise offices in London, New York, Boston, Toronto, and Hong Kong.

“youDevise is pleased to join forces with the First Coverage team because we are both passionate about the future of trade ideas,” said Colin Berthoud, founding partner of youDevise. “The merger makes tremendous sense for our clients who can use the combined network to access knowledgeable counterparts on any scale of stock, in any sector, anywhere in the world, while providing brokers with new ways to monetize their intellectual property.”

"Our shared ‘customer first’ commitment, to help the buy and sell side create value from trade ideas, will be significantly enhanced," said Roland Beaulieu, CEO of First Coverage. "Given the alignment of our visions, technologies and strategies, the combination of youDevise and First Coverage creates the premier alpha capture platform in the world."