Starting at a HF - any tips?

Going to be starting at a HF in the New Year covering Healthcare equities, joining a sole PM.

Coming from IB background and was wondering if you guys have any tips- things you did before you started? Mistakes you've seen newcomers make? Things you wish you did?

Also, any HC related sites/providers that you'd recommend getting familiar with before joining?

 

V new to the platform so unsure if can edit but realised my request was v vague. Will be covering pharma services to begin with. HF is a pod shop and I'm joining after 2 years in IB.

 

Do you know if your future PM has already trained/mentored an analyst before? 

It'll be key for you.

If not, then you'll probably feel lost and useless for the next 1 year I would say. It's not necessarily bad though.

 

I had the same background with 2 years of banking then to HF, different sector.

Advice would be that everything takes time just like how we started in M&A, you go through the process of a deal so you pick up things on the way. Now you need to take the time to go through 1-3 quarters to properly pick up the markets and the companies you cover.

Just chill and grind, ask your PM questions when you don't know something but find a good balance between being eager vs annoying.

 

Things had been going well so far, if theres anything I wish I had done earlier...maybe doing ER instead of banking haha, seriously it would have made life easier. But jokes aside, I would probably find a balance between building a "good" model and doing other things about getting the share price right (reading all kinds of stuffs, talking to others, doing your own research etc etc), you will often hear people talking about how often they update their models / sell-side throw numbers at you then worrying about as a junior not spending enough time "modelling", later on you will know that the model is only 10-20% of getting things right, not saying it's not important, but it's only the basic thing and juniors tend to focus on it too much in the beginning and I find spending time on other things help a lot more later on. Again people might disagree, I'm just a pod shop monkey.

 

Sorry this is unrelated - do you have any background in HC from an academic POV i.e. undergrad in Biology or BioChem?

Did this ever come up during your interviews?

 
Most Helpful
  1. Ask questions early. Be smart about when (i.e., not in the middle of something time-sensitive). 
  2. Over communicate. Succeeding is hard enough in this business, don’t let something stupid like a communication failure cause problems. 
  3. Make 1,000,000% sure you understand a request/task before spending time on it. Do not do something complicated if your boss wants something simple and vice versa. 
  4. Time is your most precious resource -do not waste it.  Time spend re-doing is a huge cost. 
  5. If you’re in the middle of something and it doesn’t seem right or is going to take you a lot longer than expected, check in w boss and see if you are off base, if they didn’t understand the effort required or if they can help shortcut it for you. 
  6. Be proactive. You will be a pnl drag to the team for 12-18 months, so the best thing you can do is demonstrate proactivity. 
  7. If something you’re doing isn’t going to generate pnl now or help generate pnl in the long-term somehow, you’re wasting time. 
  8. Build models that are easy for someone to understand without a demo/explanation. Not talking about formatting only; also thinking of complexity. Complexity is usually the enemy of making good calls quickly. 
  9. Use every resource available to you. You never want to look back and say “what if” - wherever you are, you have a ton of resources to be successful and don’t squander them. 
  10. try your hardest early on to figure out and focus on “what matters.” I just had an analyst candidate send me a case study with way too many scenarios and an immense amount of complexity. I know exactly which variable matters and I only want to spend time discussing that one. Not the 6-7-8 others which move margins by a few basis points. If you can figure that out early, that will be key to giving your boss what he needs. 
  11. Stay humble.  Just because your coverage made $Xmm does not mean that’s YOUR pnl or that you were responsible for it. The team was and I’m sure you contributed but a lot goes into risk taking besides building the model or talking to mgmt. 
 

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