The fits and starts are still being felt, but the independent research industry is taking off, thanks in part to hedge funds and hedge fund-like mutual funds among other things. The recent news that IHS, a Colorado research provider, has purchased John S. Herold, a major energy industry provider with lots of institutional investor-type clients, suggests the industry is in growth mode. The issue remains the business model. I do not think that IHS provides any trading services, though I might be wrong. I do not think it aims to get into that game. So it is a straight sell, perhaps to be bundled with its many other products. That contrasts with the Goldman Sachs approach. Its Hudson Street unit has been taking stakes in independent research outfits, though each will retain its own brand. The program is part of Goldman's soft dollar program, according to Financial News Online.   

For more:
- here's the Financial News Online article