Peter Sidoti, the Chief Executive Officer and a leading healthcare analyst for 20 years between Value Line, Drexel Burnham, Natwest Markets and Schroders, formed Sidoti & Company, LLC in 1999 to address the dearth of research on companies not included in the S&P 500 or generating investment banking fees.  The founding team identified a significant market of institutional investors willing to pay for research, contrary to the Street’s conventional wisdom predating the Internet Bubble. 

Our Firm originated as a small part of the research team at NatWest Markets in 1996, with five analysts initiating coverage of 30 companies with market caps below $300 million.  The Group moved to Schroders in July 1997 following the collapse of NatWest, and expanded to 12 analysts and 100 equities of $1.5 billion market cap or less.  Schroders shuttered the operation in January 1999; in our opinion, the firm viewed small cap research as a hindrance to its competition for investment banking business with larger corporations. 

Sidoti & Company, LLC received its broker/dealer license from FINRA in May 2000, which allowed the Group to charge commission from its institutional client base, and for our customers to pay for services using a more-traditional method than soft dollar converters; the changeover proved dramatic to the top line.  In addition, our Trading Desk launched in April 2004; the lead sales trader boasts more than 20 years of experience.