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What Is FactSet?
Let me tell you about FactSet Research Systems—it's a company that delivers computer-based financial data and analysis directly to financial professionals, including investment managers, hedge funds, and investment bankers. They pull together data on global markets, public and private companies, and both equity and fixed-income portfolios into one consolidated source.
FactSet started back in 1978, founded by Howard Wille and Charles Snyder, with its headquarters in Connecticut. You'll find their offices across the United States and worldwide, and they work with over 130 partners who rely on their information.
Key Takeaways
At its core, FactSet Research Systems is a financial data and software company that equips Wall Street professionals and individual investors with essential research tools. They combine data from various financial sources into a single online platform you can access anytime.
Their system includes market analytics, financial content, stock screening, customized data, and other features designed to meet your analytical needs.
How FactSet Works
FactSet's mission is straightforward: to boost the performance of investment professionals globally by turning raw financial data into actionable analytical insights. They provide the tools you need to transform that data into useful information for financial analysis and reporting.
One advantage is their pricing—FactSet often comes in lower than competitors because they draw from multiple sources, which drives competition among suppliers. They connect you to 317 independent data providers, giving you an all-inclusive, customizable computer system tailored for investment managers, hedge funds, investment bankers, and other quantitative roles.
Their products handle market analytics, financial content, screening, customized data analytics, and beyond. As of 2023, FactSet serves over 200,000 users in more than 8,000 companies and organizations, with 37 offices in 20 countries. They've maintained a 95% client retention rate and 43 years of consistent revenue growth.
A quick note: FactSet's main competitors are Morningstar, S&P Global, and Bloomberg.
The Company Structure
FactSet organizes itself into three business units: one for the United States, one for Europe, and one for Asia-Pacific. The U.S. unit delivers financial solutions to professionals and domestic institutions, while the European and Asia-Pacific units focus solely on financial professionals in their respective regions.
Since October 2019, the company has been led by CEO Philip Snow, who took the role in 2015. Snow joined FactSet in 1996 as a consultant and climbed through various positions in the U.S. and internationally. He holds a chemistry degree from the University of California, Berkeley, and a master's in international management from Arizona State University's Thunderbird School of Global Management.
On the governance side, FactSet has a solid setup with audit board committees composed of independent directors to oversee financial and corporate compliance. They also maintain an employee hotline for reporting ethical or accounting concerns, ensuring transparency and accountability.
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