A survey by Integrity Research has found that 45 percent of hedge fund research directors utilize information from external sources, such as independent research shops. There's no doubt a lot of shops selling to hedge funds but what do they really want? Anything that will give them an edge, and that is hard to come by. According to Investment Dealers' Digest, more funds seem to be considering ways to set up custom research initiatives, to explore ideas and trends before everyone knows about them. Others want services that give them the ability to poll end-users about specific products. Internet-driven services are also in vogue. So the bar is heading ever higher. Plain-jane research will not do it anymore.  

For more:
- here's the Investment Dealers' Digest article

Related articles:
- Lehman tops in research again
- Indie research at Goldman continuing to develop?
- New indie research shop born