Frequently Asked Questions
How does your pricing work?
Only brokers need to pay to use TIM. For one flat subscription rate, brokers can send to an unlimited number of clients. TIM is available at no cost to the buy-side.
Why do brokers, rather than buy-side recipients pay for the service?
youDevise decided to charge contributors to ensure that only brokers that were confident in their abilities to generate alpha would contribute ideas. Buy side firms reward brokers at their discretion, paying the broker for their contribution rather than paying youDevise for the service.
Can youDevise introduce investors to alpha-generating brokers?
We provide initial assistance to investors establishing their alpha capture program, and also help to tune established programs. On request we can introduce brokers with active idea generation programs, and again on request recommend brokers that have specialists operating within the investors' parameters. With the permission of each broker, youDevise can provide its independently audited history of broker performance.
How do TIM buy-side firms reward good performance?
Buy-side firms reward brokers in different ways depending on the kind of program they have in place. Many funds reward brokers with immediate flow, by trading good ideas directly. Quant funds reward outperformance with cash payments. Many long-only investors reward brokers with broker votes at the end of each quarter, leading to increased commission in the following quarter. Typically 30% of the broker vote is cast in this way. In all cases, Alpha generation by brokers leads to deepening relationships between brokers and their clients.
Can youDevise introduce brokers to new buy-sides with effective idea programs?
With the permission of each broker, youDevise is happy to provide performance data to buy-sides that have serious Alpha management programs in place. In addition, if a sell-side is keen to reach a new buy-side that has a less active program, or does not yet use TIM, we are happy to work with the broker in the sales process.
Can TIM help investors filter brokers in or out depending on performance?
TIM is commonly used by buy-side firms to prune underperforming brokers, and to provide a “nursery” for new broker relationships. youDevise can take a more active role in helping investors make the most of their alpha capture program, including recommending straightforward trading strategies based on the data to which the investor has access.
