Equity Research career change, freelancing, research tools
Hi everyone
Just wondering if anyone does Equity Research as a freelancer? Is there any scope for this? I am also wondering what research tools one could access as an individual, along the lines of Capital IQ or Factset, but ideally lower cost? I would like to be able to do my own research reports, if not as a freelancer, to at least support my application to work for an investment bank, managed fund, or research house.
I have a medical degree and have been working full-time in the field for 7 years, but i am now looking at a career change into equities research, focussing on Healthcare, Pharmaceuticals, and Biotechnology. I am studying a Diploma in Applied Finance, and am also in th middle of the Breaking into Wall Street self-study course. Later in the year I am thinking of doing the Analyst Exchange course on Financial Statements and Valuation.
Any tips appreciated!
PJ.
imho, you'd better start applying some shop and get trained there first, or it's very hard for you to produce something meaningful
I agree with CaliforniaAnalyst. I don't know much about what's out there in terms of freelancing opportunities, but you'll have a tough time convincing customers to buy your reports without any previous experience.
You'd have to talk to a legal specialist. First, know that ER guys have to be licensed with the Series 7, 63, 86, and 87. In order to do that, you have to be working for a broker / dealer so you'd have to get your "company" officially designated as such.
No way you could produce meaningful research without being properly trained in valuation, model creation / maintenance, etc. It's a super tough industry and the guys who fly solo mostly have BB experience.
Knowing the industry is not enough - it is just a baseline. Everybody in my bank's healthcare / bio teams have phd / bio / etc backgrounds in addition to MBA / CFA in addition to multiple years sell-side experience.
I think unless you are a superstar analyst from the sell-side it is very tough to make a business out of independent research. With no experience in ER, it is essentially impossible. WIth your background you should be focused on transitioning into an Associate position in ER. It is a complicated, nuanced job and understanding all the facets will take a while.
By the way getting your CFA (or MBA) would better position you for a job in ER than writing your own research as a hobby.
You can always start a blog lol.
There're a million and one people "freelancing" as equity research analysts on Seeking Alpha alongside wealth managers etc in an attempt to get publicity; in general I don't think this is perceived as very valuable. It's also a really good way to severely discredit yourself if you put out some bad analysis.
A better way to get some "street cred" is through higher-end investment forums like VIC or sumzero. If you're confident that you can produce professional-caliber work, submit some ideas to those sites.
Thanks for the comments. What is the VIC forum ? I found sumzero, although it looks like I would have no chance of being accepted into the site.
I will have to look into doing the CFA. Generally how long does this take?
PJ.
Oh boy.
valueinvestorsclub.com . your not going to be granted membership to either so dont bother
He could get delayed guest access just to check it out.
No, dont make your own reports it will be a gigantic waste of time and I will slap you silly if you do that.
Your best way is to network and promote yourself as an industry expert.
Go to the biggest listed medical companies in your field, check their investor relations website for which analysts cover them. Google them, follow bloomberg reports (they usually get quoted often) and set up Google alerts to email you when their name pops up.
Reach out to those analysts, offering them to meet for lunch to exchange your views on the medical industry. Trust me, they will be VERY interested because you offer industry knowledge they they do not have, and its very differentiated value they can offer back to their clients in a form of report. Even better, If you can offer to host a Q&A group lunch with their clients (their firm will pay) on XYZ topics, it will make a huge impact. Then express your interested in finance by leveraging your industry knowledge, contacts, and how other associates right out of MBAs dont have this information and know-how of how everything works.
This is where everyone in ER is trying to differentiate, providing industry contacts that really know the ins-and-outs of the business because quite frankly analysts will never know it as well as them or have this "on-the-ground" news that makes it really value-add.
Thanks for the advice Shorttermbuy, you make some great points.
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