Lehman SA Equity Research 1st Round - HELP!

Hello Equity Researchers,

I have a 1st round interview for a summer analyst position in less than a week and I am terribly nervous. Desperate, I suppose, would be a better description given the job market. Basically, I have really no idea how to prepare for this interview on the fit or technical side. By fit, I mean in terms of "why do you want to work in research?" I know, I know. Why apply for a job in research if you don't even know why you want to work there in the first place? Long story short, I didn't get my other choice and I was only offered an interview in Research. The extent of my knowledge on research is that on a very general level, equity researchers provide recommendations to their sales and traders? I don't even know if that is right. Pathetic.

So why do you equity researchers enjoy your job? What were some of the reasons (or reasons you feel were most convincing) that made you want to do equity research when you were a junior in college? Most importantly, what would you say (or what did you say) if you were asked "Why do you want to work in research?"

In terms of technical, I'm not sure what to expect. While the interview is only 30 minutes long, I feel as though at least 5-8 minutes will be spent on technical questions. If you've gone through the interview process before, I'd really appreciate it if you could give me some idea about what technical (and fit) questions to expect for a 1st round interview.

A little about me: I attend an Ivy; 3.8 GPA, I've had an internship in consulting (boutique) and private wealth management - each about a year. I've taken 2 valuation courses. I don't know if that helps or not.

Any details on this specific division would be greatly appreciated either through post or private message. Thanks in advance!

 

Sorry, I don't think I go to the same college as you, so I wasn't really your direct competition (I'm guessing you go to Stern?, SternMonkey). What's with the hostility? Well I guess I would've technically been your competition if we met on Super day! No hard feelings :(

 

So why do you equity researchers enjoy your job? What were some of the reasons (or reasons you feel were most convincing) that made you want to do equity research when you were a junior in college? Most importantly, what would you say (or what did you say) if you were asked "Why do you want to work in research?"

I'd say I enjoy my job because I get to write a lot, use my finance skills and I'm definitely the backbone of the bank. Sales and traders depend on me quite a bit for my advice and thought. YOu can predict how the market is going to move, and that is a valuable skill, especially if you want to prop trade or run a hedge fund.

you also make good money and hours aren't nearly as bad as M&A, but that depends on your boss.

 
Best Response

"I was wondering what some of your daily activities are in equity research? And another question I'm really interested in knowing the answer to is: What characteristics make a good equity researcher?"

Got this question so I'll try and answer it.

Characteristic of a good equity research analyst 1. Strong writer, convincing, compelling and interesting writing ability. Ability to write quickly helps as well. 2. Self-starter - always look for that nugget of info that will give you a better perception on the company and trends. 3. Strong finance skills. ER people are highly valued because they are good with numbers, but are also able to communicate said numbers into interesting commentary. Nowhere more in the bank are two skills more highly valued, but need to be achieved in concert with one another.

Day to day Financial modelling, writing notes and e-mails and reacting to newsflow - that is probably the most variable part of the job. Shit can hit the fan at any time, and you ned to be aware of everything and be ready for it. Obviously some travel, depending on team and bank. You also meet with clients regularly and have a strong pulse on the macroeconomic factors (again, depending on desk) I work about 55-60 hours a week and no weekends, but I work in London, so it's probably worse for NY. Pay is good, and can be very good if you know what you're doing.

 
guy_2000:
what is the typical pay progression in equity research in NY ? since it is predominantly a cost center, how much of a effect does that have on pay ?

Pay is lower at the analyst level. Base is the same, but bonuses are smaller, which makes sense since you don't work as hard and don't deal with the same type of business. The chinese wall has depressed long-term earnings power, as you can no longer generate huge fees from IBD advisory activities in research. Don't know for sure what associate figures are, so I won't guess here.

 

If we hack WSO's database we can probably find the IP address associated with the account and/or email. From a quick LinkedIn search should be enough to answer that question. I'll get my men on it right now and have an answer for you shortly.

Go all the way
 

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