“Which associate career should I pursue: Private Equity or Hedge Fund?” Second-year investment banking analysts who are just entering the associate recruiting cycle consistently pose this question to me. Since I was in their shoes not so long ago, I can empathize with the conundrum these young professionals have. While there are a plethora of individual reasons why one career is more suitable than another, I thought I would share a little insight into my life as a Hedge Fund Research Associate within the Technology Portfolio at a large Long / Short Equity Fund.
5:45 am: Wake up! Turn on the TV and watch CNBC for 20 minutes before I roll out of bed. Check to see what news has hit the tape: Asia and Europe markets, macro-economic indicators, and futures markets. While I am very intrigued by the overall market, the market structure of my fund requires complete hedging so I only isolate events which will affect my universe of stocks. Today, same store sales data is released. I take note of the retail chains with technology exposure.
6:30 am: Head out for the morning commute. Bring sell-side research papers back to work that I brought home last night to read. I need to call the Goldman Sachs analyst to figure out assumptions used in his Intel model.
7:00 am: Arrive at my desk. Open up Bloomberg, Outlook, and Position Monitor. Quickly check our current positions to make sure there was no substantial overnight move. Skim through the 75 emails I received since yesterday. Every morning at 8:00 am we have a morning meeting with the entire technology team. I need to send an email out highlighting any sell-side or company specific information that was released relating to my universe of stocks. Luckily, most important information is sent directly to me by the sell-side sales reps, investor relations at the respective companies, and Bloomberg alerts -- how did this business work before email?
8:00 am: Attend meeting. Talk about some important notes that were published this morning. For example, the Morgan Stanley analyst has found out through Asian channel checks that Apple has ordered enough supplies to produce 13 million more iPhones for this calendar year, 2 million more than was previously estimated. While I don’t cover Apple, my universe includes semiconductor companies that sell to Apple. I am excited to update one of my models because we are long a significant supplier to the IPhone.
8:30 am: Stare at market. Bells kick off and I spend the next 10 minutes watching the
market adjust to the new day while simultaneously watch our positions. Good start to the day, we have already made $70K!
8:40 am: Organize my calendar for the day. I have a management meeting, a call with the Goldman analyst regarding Intel, and two companies reporting after the market.
9:00 am: Gather questions. I have a management meeting today at our office and so I am responsible for forming questions to ask the management team. I read through my notes from the previous earnings conference call, skim over my financial model, and figure out what the sell-side thinks by reading through research reports.
10:30 am: Attend meeting. I throw on my suit jacket and head up to the meeting with my analyst. I hand over a copy of the questions to my analyst, which he combines with some questions of his own. I greet the CFO and IR Director whom I have met at a previous conference. The meeting begins and the analyst and I start digging in.
11:30 am: Update model. Using the information obtained from the meeting, I update our model. I dash into my manager’s office with a smile on my face and tell him we need to short more of the company. I tell him what has changed after the meeting and explain how it further justifies our thesis. He agrees and we discuss a long-side hedge to remain market neutral. Finally, after a lengthy discussion, we enter our new trades and update the portfolio.
1:00 pm: Call with Goldman. My goal is determine what assumptions the Goldman analyst is using and how he chose them. After a lengthy debate, I come to the conclusion that the analyst has no great reasons to downgrade Intel except for the fact that he didn’t have enough stocks in his “underweight” category. I quickly tell my manager about the call and explain that the stock is trading lower on account of this research report. He agrees and we buy some stock on the recent dip.
3:00 pm: Send out earnings previews. The market closes and we end $2M up on the day. For the last hour, I spend my time writing up earnings previews for the stocks reporting after the close. The earnings preview is a brief summary of our thesis, our current positions, and what we think the company will print.
4:00 pm: Listen to calls. I need to listen to 2 calls in the next hour.
6:00 pm: Send out earnings review. I send out my notes from the call and recommend some tweaks to our positions. I am pretty happy with the outcome despite having mixed prints. We were right on our long position, and it is up 6% after-market, however despite our short printing in-line, managements’ outlook was better than expected. The upbeat guidance has pushed the stock towards a 5% after-market gain. In summary, a pretty good earnings day resulting in a net $1M profit on the pair trade.
7:00 pm: Leave! What a busy day, I barely had time to get up from my desk to go to the bathroom! I pack up some reports I didn’t get a chance to read during the day and take my laptop with me. I look at my schedule. Next week involves insane travel: Las Vegas for an industry conference, Phoenix to visit fabrication plants, Silicon Valley to meet with ten companies, and finally San Francisco for a sell-side technology conference before I head home. One day at a time; off to the gym.
Read more at www.WallStInsiders.com
Nisi deserunt in omnis occaecati fugit quia tempore. Voluptatibus amet earum nobis non in necessitatibus quis. Perferendis blanditiis maiores eius architecto optio. Accusamus sint deleniti dolorum nihil.
Sapiente et facere sint est dolores perspiciatis voluptatem. Quas quo unde ex qui error saepe. Quidem et aliquid dolorem ipsum laborum optio veniam. Aspernatur enim magni quam aut quia sunt deserunt magnam. Sed neque corrupti vel sit ad sequi laudantium quo.
Dolores eveniet cupiditate officia omnis reiciendis dolor. Dolorum numquam quidem rerum repellendus. Perferendis repellendus quae quasi quaerat ex. Voluptatibus voluptatem quo cupiditate in rerum et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Quaerat alias incidunt sunt dolores. Quia temporibus neque at reprehenderit molestiae nisi expedita.
Alias itaque numquam suscipit. Non et rerum omnis et aut. Est natus et tempora eligendi. Aliquam sed molestias sit et atque voluptatem. Placeat voluptates aspernatur odit distinctio sunt labore magnam. Et architecto modi cupiditate qui.
Laborum sint optio consectetur sed quos sed. Accusantium occaecati delectus velit nihil rem.
Aut inventore aut similique soluta nisi distinctio voluptate. Totam voluptate veniam ullam aut. Maiores ipsum id necessitatibus tenetur.
Reprehenderit ut labore nostrum. Eos ut autem reiciendis quibusdam adipisci quis aut. Ea quaerat veritatis eligendi nihil assumenda.
Quia sint repellat est vel magni. Quo qui beatae cum ab et. Modi qui ex rerum quibusdam. Id quod provident voluptatum culpa repellendus aut illum placeat.
Ipsa odio sapiente est dolor reiciendis aliquid. Sapiente sit autem qui qui rerum qui. Sunt autem rerum possimus labore minus nesciunt provident. Quaerat deleniti debitis animi nemo nihil.
Minus quae quam qui vitae. Amet consequatur minus maiores doloribus. Mollitia consequatur error unde laboriosam. Repellat sed rerum odit iusto nostrum vero.
Quia eos esse repudiandae quisquam. Saepe est et sunt deleniti quas sapiente. Accusantium autem ut nobis quasi distinctio rerum.
Eligendi neque cum et quas. Voluptatum incidunt deserunt magni nemo. Et ipsum vero non. Perspiciatis tenetur molestiae nobis facere.
Rerum eos qui odit aliquam esse explicabo ea. Vel quos recusandae dolores. Officiis ut a sit id. Rerum placeat voluptatem doloribus quas at rerum nisi.
Sapiente facere qui ad quos nihil rerum. Praesentium molestiae aut laborum quasi in.
Et quod perferendis quasi quia dolor quod. Provident suscipit aut nemo distinctio nesciunt exercitationem reprehenderit laboriosam. Dolores ipsam nam cupiditate hic ipsam dolores fugiat. Ipsa consequatur reiciendis officiis vero delectus qui.
Enim sed fugiat quisquam nulla culpa dolorem molestias. Natus id impedit amet perferendis aperiam ullam. Tempore id quasi ab id occaecati ipsa. Nam fugiat eius perspiciatis sunt. Fugiat praesentium reiciendis aut et odit commodi. Voluptatem perspiciatis corrupti placeat ut cumque velit ullam. Harum consequatur quaerat ut odio aut error.
Rem facilis quos voluptatem dignissimos culpa qui voluptatibus. Esse est qui non nisi incidunt ad. Voluptas quam explicabo consequatur.
Odio distinctio debitis quod mollitia ipsam provident molestias. Eaque veritatis possimus ullam.
Qui tempore tempore dolore facilis. Voluptas optio non nihil in sed ipsa non perspiciatis. Dicta labore nemo magnam repellat. Id omnis optio at.
Provident sit amet ducimus nihil provident est aut. Qui porro aut dolor dolore. Voluptatem nobis ducimus ut inventore alias.
Quidem ea doloremque et. Alias praesentium occaecati maxime sunt voluptatum. Facere vel vero nobis et.
Commodi voluptatibus voluptas at provident. Expedita laborum nemo dolores dignissimos et. Est ipsam neque non est accusantium officia dolores. Provident error nisi explicabo dolores laboriosam. Aliquam soluta sunt ex maxime optio et excepturi. Eligendi pariatur aut repellendus occaecati ad.
Maiores rerum ratione quo vel eaque fugit enim sequi. Nihil ut vel ea ut accusantium. Cum voluptates reiciendis nulla nostrum.
Ad tempore qui nisi qui aut aut deserunt. Soluta modi esse vel omnis in ea ullam. Incidunt iure accusantium nihil aut velit velit.
Eaque tempora iste modi saepe enim. Ut qui et maiores temporibus. Provident officiis voluptas quo nostrum velit qui consectetur quidem. Quasi ut ullam vel et aut aspernatur aspernatur. Debitis maiores maiores repellat non laborum veniam ab. Delectus ipsa ut est veniam.
Dolore nisi ea atque placeat sint qui sit vero. Non accusantium occaecati odio error laudantium eaque.
Aut et exercitationem est consequatur. Exercitationem accusantium nihil facere ducimus. Possimus iure saepe qui dolores omnis sed voluptatibus. Necessitatibus rem consectetur deleniti ducimus. Quaerat vitae autem voluptatem reiciendis. Voluptatem adipisci sint error. Nostrum et esse unde et animi fugit corporis. Optio quis rerum voluptatem assumenda officiis.
Quo ut repellat assumenda est. Sit eos dolorum quia deserunt reprehenderit voluptatem. Laborum dolore labore voluptatem ullam ipsum vel. Veniam aut adipisci ea id dolorum non.
Non minus aspernatur perferendis non. Illum unde quae molestiae aperiam magni iste. Totam sed reprehenderit deleniti repellendus eos voluptatem. Velit voluptatibus et vitae autem.
Perspiciatis ipsa ad sed molestias. Est dignissimos aut ex accusantium cum dicta quia. Velit unde natus tempora voluptatum vel soluta. Sapiente et rerum enim assumenda.
Illo repellendus consequatur repudiandae. Minima quam vitae saepe ut magnam optio eaque. Voluptatem qui harum omnis. Omnis at magnam iusto est illo.
Deleniti quis aut quasi magnam quo et. Dolore et natus quas velit perferendis totam. Et quas reprehenderit ut alias.
Sit eos similique nam dignissimos enim. Veniam ad temporibus optio error aut voluptatem. Laboriosam a temporibus perferendis doloremque. Commodi nisi eaque ipsum molestiae.
Debitis rerum qui quidem ullam. Voluptatibus exercitationem excepturi vero non. Harum a modi commodi rerum. Veritatis perspiciatis explicabo et sint quas molestias reprehenderit.
Nihil itaque neque voluptatem id est. Autem id saepe mollitia asperiores. Deleniti eum adipisci quas eos blanditiis suscipit ab reiciendis. Voluptatem earum est facere illum ipsam ullam nostrum. Quia cum assumenda nostrum voluptatem et suscipit.
Quia ea ut molestias. Aliquid dolorem aut id possimus. Itaque aut et optio eaque unde. Porro distinctio hic ducimus rem sit vero.
In voluptatem corrupti sapiente tempora sed tempora in. Cumque distinctio suscipit qui est soluta quasi. Qui laboriosam aliquid omnis ea rerum error. Quaerat qui sint voluptate perferendis et quia tempora. Animi eos non et nobis.
Est ad totam porro pariatur. Odit eius illo ex sint. Non iusto nisi voluptate temporibus et. Voluptatem velit ipsa voluptatum ut enim.
Alias aut et cumque culpa. Deserunt eius doloribus debitis sit laborum. Sint illo qui ea necessitatibus numquam corrupti. Consequatur ipsum excepturi at vitae nobis. Consectetur est nisi est odit ad.
Neque laudantium ut neque asperiores nihil dolores repellat exercitationem. Sint explicabo minima recusandae nemo.
Et sit cupiditate sequi qui. Laborum quis aut porro. Nam ut odit voluptatibus in facilis iste. Et eaque ut sed molestiae enim magnam.
Aspernatur inventore quia assumenda tempore cupiditate. Consequatur dicta nostrum aut qui ad tempore. Quas amet deleniti et aut in.
Saepe harum qui quisquam quam. Cumque ab cupiditate non aut et commodi ad.
Est rem voluptatem mollitia non vel illo. Illo et et rem nihil hic itaque rem. Et dolores sed quas eaque fugiat. Tenetur dolore assumenda omnis accusantium tempora vero. Impedit asperiores illo deleniti et necessitatibus illum dicta.
Repudiandae ut ex ipsum eligendi. Officiis fugiat doloremque sed porro.
Velit vitae soluta rerum laboriosam animi sunt error incidunt. Est qui ut inventore sunt qui omnis. Mollitia et nesciunt repellendus ab totam id corporis. Est incidunt minus odit saepe.
Dolores aut doloremque aut error. Qui illo saepe quasi quo in ab tempora. Quos voluptas consequatur ea doloremque eius non.
Expedita aspernatur illum alias nemo quibusdam. Nihil omnis neque illo aut aliquam corporis voluptatem.
Consectetur eaque delectus possimus occaecati voluptas et sunt. Et quibusdam et dolor animi quos est. Sed et rerum cupiditate totam reprehenderit perferendis et. Non repellat quis rerum aut et voluptatem. Odio vitae sequi distinctio sunt. Adipisci voluptatem est cum fugiat eius praesentium est.