What is the difference between buy side equity analysis and sell side equity research?

any difference?

it seems that HF tends to call the job equity analyst, whereas sell side firms call it equity research associate/analyst.

Is the buy side one more investment focused? Their reports seem to have contents like technical analysis, asymmetric investment, etc. whereas sell side reports are more fundamental based.

Am I completely lost? If anyone could help, that'd be greatly appreciated!

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Best Response

Yes you are completely lost. Buy side and sell side analysts generally use the same title nomenclature. You can look at the FAQs section but sell side analysts work for investment banks or independent shops and are the knowledge center of banks were they drive business by coming up with an investment idea, broking it to clients so they in turn generate trading commission for the firm. Buy side analysts work for asset managers, long onlys and hedge funds were they help the fund manager come up with investment/trade ideas that they use to trade their own funds. Also buy side doesn't write any public reports as their main goal is generating alpha for the firm and keeping their ideas a secret from competitors.

 

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