I've always thought of the buyside as a common exit opportunity for people in ER (due to the similar skillset in analysing companies), but after speaking to MDs in ER, it seems it isn't that common of a move. Apparently, there are very few positions available on the buyside (at top firms) and this obviously limits the opportunity set.
For the people in ER, how often do you get headhunters reaching out to you and how often do you see people move to the buyside?
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I've heard/read that it's definitely possible (makes sense) but you have to do a lot more work to make it happen than you would if you were in IB (which doesn't necessarily make the most sense). More work as in I'm guessing it's rare for headhunters to reach out to people in ER
Can anyone shed light on this? It's not impossible, but I've seen a greater number of investment bankers than Equity Research Analysts on the buy-side.
Well there's more IBankers than Equity Researchers so that probably explains a large portion of the difference.
I went from interning in ER last summer to interning at a HF this summer does that count?
There's quite a lot of role changes at the internship level though so it doesn't really answer the question.
What sort of responsibilities/roles are you interested in? I've been here a week and a half and I've already pitched a short to my boss (Dir. of Research) including a thesis write up, and then to the fund PM, listened to and summarized a couple industry conferences, and right now I'm building a model for a future long pitch. No one in the office has IB experience, but most have past ER experience.
Stryfe, sounds like a great experience, but Dece probably wants more detail on FT ER to FT buyside opportunities.
Talking to MDs might not actually be the best tactic here. At the senior level many MDs remain on the sellside because they've reached a point where they have a comfortable lifestyle. Many have 10+ yrs of experience and if they wanted to go to the buyside they likely would have made the transition earlier.
On an associate level it seems like it depends on the analyst you work for (as most everything does in ER). The more visible the analyst or "in vogue" the sector is the more likely you'll get buysiders calling you up for opportunities. I'm at a MM bank and we've seen a pretty even mix of associates leaving for other sellside opportunities at BBs and leaving for the buyside.
Yeah I know what he was asking, I was just clarifying his statement on intern roles being varied (which they are).
There are a number of great threads that go into depth answering his question that a search would pull up.
double post
Would add to the above point that you should note there are 3 types of top ranked analysts:
(1) Those who are all over the detail and provide valuable insights to clients which generate alpha. (2) Those who are awesome at the sales aspect, client entertainment, and are very visible. (3) Those who are providing the best corporate access / putting on the best conferences in the sector (which is valued by clients despite new regulatory changes to what clients are allowed to pay for- i.e. not corporate access, but purely research. Informally, clients still pay for and value corporate access, even if not explicitly).
If you want to move to the buyside, the type of analyst you want to work under is type (1)- because then you will be picking up his knowledge and skills that will leave you in good stead when you move.
Therefore my advice is this (adding to what was said in the above post). Know what the analyst's advantages and disadvantages are. He may be top ranked, and this will always give you more visibility to the buy side all things being equal. But what is the reason for him being top ranked- is he all over the detail, and therefore are you going to pick up the tangible skills working for him that will serve you well when you move across.
One thing I would also add as an aside point to the above post, is that yes associates or people who have 2-5 years of experience will be the typical profile to leave to the buy side. However, in the last 2 years there is also a definite trend of Director-level hires at top hedge funds- this is contrary to the tradition, as once you are at this level ER is a very cushy job. However, they can be seeking a change and/or challenge - plus the potential upside can be considerably higher, with this trend likely to continue given the regulatory changes in terms of what clients are allowed to pay for. From the fund's point of view, a Director or MD-level hire can also have the advantage of them being MUCH better connected than an Associate with 7 years' less experience. Who you know is very important in this business, and having the right contracts can be a very valid way to generate alpha.
Moves to the buyside happen all the time, but it tends to be medium-level analysts with lots of buyside connections who've known them for years.
Best ER sector for buy side recruiting? (Originally Posted: 06/28/2014)
Consumer? Energy? Technology? Healthcare? etc....Is there a sector that is generally more well received by buy side firms?
Also, are there regional preferences? For example, will asset managers on the West Coast focus on tech, funds in Texas focus on energy etc?
Whatever is the hottest sector in my opinion - just do whatever u r interested in. Can't go wrong with Tech Cause will be a huge part of future
consumer
Every sector has a great buy-side firm out there. I guess just do your job well.
From non-BB equity research to buy-side (Originally Posted: 11/27/2011)
I've been doing sell-side equity research at a boutique for 4 years. Graduated with an engineering degree and cover the sector I would've worked in, but went straight into my current gig.
I want to get to the buy-side, but I am having zero luck getting responses. My analyst was II ranked at a bulge-bracket and was well known, but here he's pretty passive, so I don't get much exposure. And while I've given some seriously good calls to our sales team, they have not helped me in return (small firm with NO growth for associates, so it's expected for anyone with ambition to move).
Anyone with specific advice beyond networking? For one fund, I was supposed to go pitch a stock, but they canceled 3 meetings over 5 months. Eventually, I did a write-up to go with my presentation and sent it in (this was last week), so maybe that works, but I don't know if my approach is optimal.
I'll toss in that I' in NYC and looking to stay here or head to Chicago.
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