Investor Relations from a Wall Street Perspective

Investor relations represents an underappreciated function in Corporate America. Executives often overlook the function because they believe they can successfully communicate with investors on their own. Investors overlook investor relations because often times the Investor Relations Officer (IRO) provides very little value to their process. Therefore, I would like to introduce the investor community to Reficio Investor Relations: Investor Relations from a Wall Street Perspective.

I spent the better part of 10 years on the Sell-Side covering over 35 stocks, which means I have interacted with at least as many investor relations professionals. For the most part, the IR professional provided little value to the investing process. When I came to Wall Street, the IRO was more of a communications type that really facilitated meetings between investors and management. Once in a great while, one would come across the IRO that provides immense value and can answer questions as if he or she were the CEO or CFO. For the most part, investor relations seem to be an overlooked and underappreciated function among corporate executives and investors, alike.

What Is Investor Relations from a Wall Street Perspective?

Investor relations from a Wall Street perspective primarily revolves around the idea that the IRO possesses all of the power in the company / investor relationship. The IR from a Wall Street perspective is built on the idea that the IRO will:

1. Clearly and confidently present the company thesis/message to the investor community

2. Provide open and transparent communication to all constituents of the investor community

3. White glove service that makes life easier for the sell-side and buy-side

4. All while focused on unlocking shareholder value

The cornerstone tools of an investor relations program from a Wall Street perspective revolve around:

1. An earnings release that provides detail and reports on the most important metrics necessary for financial modeling.

2. An earnings slide deck that provides investors an illustration of how these metrics change over time

3. An investor deck that drives compelling company narrative, educates investors about the company’s industry, and includes competitive benchmarking to position the company.

4. Regular investor meetings in order to establish, and maintain both credibility and relevance with the investor community.

We recognize investor relations is not a one-size fits all endeavor, but we believe investor relations from a Wall Street perspective represents the most attractive approach to investor relations!