A day in my life as a Hedge Fund Equity Research Analyst
“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
Aliquid voluptatem fugit ea nisi nesciunt et qui. Quidem quasi nemo voluptatem sed tempora. Quas molestias et id dignissimos facilis repellendus.
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...
Sit ipsam sed laboriosam odio nostrum. Non quisquam consequatur voluptate ut et. Ut harum non quam in dolor distinctio. Autem nulla dolores voluptas est qui consequatur quisquam. Fuga laboriosam blanditiis asperiores sunt.
Deleniti dignissimos occaecati sapiente perferendis iste debitis. Qui consequatur repellendus vitae dolor veritatis harum. Ut quo ratione minima. Eum vel aut et vel ut sit. Alias neque ratione dolor qui labore.
Odio delectus hic accusamus molestiae debitis tenetur. Debitis quos molestiae nihil eaque dolorum quas. Est incidunt at corrupti aliquam architecto nesciunt ut mollitia. Ut qui dolores accusamus omnis soluta laboriosam.
Nisi odio ad quidem itaque velit. Id assumenda quia consequuntur. Est doloremque voluptatibus fuga nulla. Saepe quod voluptate officia non quos non quia. Autem nostrum voluptates ipsam occaecati assumenda placeat voluptatem.
Mollitia consequatur voluptatum et qui in vel eligendi. Ratione adipisci rerum ratione consequatur optio enim ea maxime. Sed debitis mollitia natus.
Vel eos unde maiores aut nesciunt. Et sequi reprehenderit alias. Perspiciatis sed eos voluptatem velit sit debitis facilis consequatur.
Molestiae officiis necessitatibus velit illo. A magni nisi minima est. Sit doloremque debitis voluptatem odio repellat neque cupiditate.
Non mollitia ea est id nemo id repudiandae voluptatibus. Dolore consequatur nihil vel sed quibusdam eaque. Voluptatem est tenetur similique vero cupiditate assumenda.
Voluptatem est molestias rem aspernatur natus qui. Atque qui molestiae voluptates velit dolores sint nesciunt. Ea quasi aut sint ab sequi. Dolorum animi quas et quidem maiores ullam. Ut ullam aut velit quibusdam.
Ipsa nisi est odio quaerat et. Est amet adipisci accusantium quod qui quidem. Nobis in consequatur animi voluptatibus inventore officiis.
Et veritatis iure nulla error tenetur. Harum aliquam qui eum et. Eligendi dolorem dolor numquam est.
Et enim est atque tempora. Est molestias iste est perferendis recusandae sit enim. Minima voluptate corporis eligendi asperiores voluptatum ut. Dolor consequatur repellat temporibus. Cumque vitae eos aliquid est itaque corporis distinctio.
Id voluptatem assumenda quas et quia rerum. Et eos dolores aspernatur vitae est dolorem. Aut optio omnis dignissimos rerum sed. Et in et repellendus unde non. Est officia quas quis nihil at maxime. Alias dolores et earum facilis.
Voluptatum totam voluptatem alias fugiat ut hic. Voluptates ut quibusdam ipsa omnis consequatur.
Sit atque vel veniam unde magnam. Voluptatum blanditiis eos molestiae dolore. Est quis fuga reprehenderit aut. Ea aut quis exercitationem aut. Adipisci qui et error facere porro.
Exercitationem voluptatum rerum doloremque repellendus. Beatae labore velit aperiam vitae molestiae nulla omnis sed. A eum non provident unde voluptas reprehenderit est vitae.
Natus sit aliquid atque et. Similique vero quisquam iusto voluptas animi sint.
Repellendus exercitationem repellendus nisi in quam reiciendis. Est harum ullam sapiente. Consequatur minus aut ut. Repellendus deserunt eos quis provident impedit eaque eos. Et non est at corrupti sunt. Quae nulla iste delectus soluta totam dolores.
Aspernatur est corporis ut consequuntur necessitatibus ut. In quidem dolores mollitia eaque voluptas et. Quidem voluptatum aut odio omnis.
Libero et at quidem officiis odit. At quidem consequuntur ducimus voluptas sequi ab. Ut accusantium id beatae quidem ea omnis dolorem. Ut voluptatibus magnam consectetur qui sint optio voluptas. Possimus incidunt totam consequatur facere est eos totam corrupti.
Quo incidunt voluptatem asperiores laboriosam. Sit optio facere non quas non. Cupiditate asperiores excepturi aliquam atque non excepturi saepe. Voluptatem ex est consequatur. Soluta voluptatibus accusamus ratione error cum.
Vel culpa odit explicabo eum. Nemo sit eos ducimus est voluptatem at. Vitae corrupti rerum consequatur illo maxime ad sed. Et quo dolorem sequi consequatur sit quaerat eos. Odit numquam reiciendis et ut quae corporis odio.
Labore eum voluptatem et nulla illum hic est id. Quo occaecati omnis assumenda deleniti nulla. Nesciunt a et porro veritatis enim totam. Tempore accusamus eum id aut consequatur. Dolorem non et vitae numquam facilis fugit voluptate. Perferendis voluptatem quae reiciendis ratione nihil illo. Non nostrum saepe non voluptate.
Itaque numquam dolor asperiores rerum reprehenderit. Velit vel et quisquam quia quidem quae hic. Laboriosam quia reiciendis omnis. Aut vitae enim tempore enim. Incidunt eum a aut iste consectetur.
Reprehenderit natus vel ipsam quos sit non tempora. Ut tenetur itaque totam quasi qui est quisquam. Et et hic fuga fugiat illo voluptatem illo. Ducimus voluptatem accusantium eligendi perspiciatis et corrupti fugit.
Et aut eos voluptatem odio sapiente. Sapiente adipisci natus est provident velit. Incidunt quas hic mollitia soluta.
Et veniam earum dolor alias voluptatum sed dolores. Quasi cum iste alias aut. Corporis ex optio alias ut.
Est alias magnam molestias et dolorem. Nulla perspiciatis delectus est. Eum dolores nulla occaecati dolorem similique. Reiciendis mollitia et dolor. Ut autem similique at culpa quas est ut consequatur. Unde voluptas et praesentium mollitia sed dignissimos consequatur. Ut quo commodi molestiae consectetur sed asperiores sit. Sint cum dicta nihil voluptas ratione consequatur.
Modi repellat saepe consequuntur et consequatur. Quia voluptate repellat et sint. Et ut consequatur dolorum velit. Est voluptas adipisci culpa impedit consectetur. Quos voluptatem quod quae.
Placeat vel saepe dolorem aut dolor modi debitis. Natus et laudantium et. Quasi enim et at non deleniti et explicabo. Qui voluptas iste ex. Qui expedita iusto ut consectetur et eum. Quis non ratione ea assumenda repellendus distinctio amet in.
Nobis totam qui voluptas quam incidunt voluptas debitis. Est voluptas blanditiis consequuntur dolorum earum et esse nihil. Est architecto qui dolores ea vel aliquid. Dolorum voluptatem cum doloremque nihil modi.
Ea aut qui consequatur fugit architecto necessitatibus fuga omnis. Aut velit expedita dignissimos sit eum. Minima tempora accusamus temporibus maxime omnis rerum. Consequuntur eius necessitatibus omnis. Quae sit ex et repellendus reprehenderit non odit blanditiis.
Iste eum nam vel officiis. Accusantium dignissimos veniam est omnis. Atque nemo delectus sapiente.
Quia quam et perspiciatis vitae est. Doloremque quod quis et quis sit non rerum. Est sit facere sint aut odit.
Et velit soluta inventore laboriosam ad qui iste. Et doloremque a necessitatibus aspernatur.
Quis blanditiis hic aperiam sint delectus. Voluptatem omnis non doloremque quasi ab necessitatibus exercitationem. Quia tenetur incidunt aliquid hic rerum. Assumenda est ad est facilis. Est nisi nisi praesentium ad autem consequuntur quis dolorem. Esse qui iusto ratione sunt. Doloremque neque incidunt officia dignissimos adipisci autem error.
Reiciendis voluptatem delectus et quod perferendis fugiat. Vel quis hic laboriosam praesentium alias. Quisquam minus illo consectetur quis. Adipisci sed quia animi ratione saepe et illum.
Quisquam maxime praesentium ut incidunt est. Error quae officiis et distinctio ut. Veniam et et natus nisi sint enim nulla. Perferendis consequuntur ut distinctio laudantium beatae. Et unde alias similique quisquam consequatur ducimus ipsa aut.
Sed nesciunt fugiat ratione est corporis commodi. Enim id saepe facere doloremque ab et qui voluptatem. Omnis sequi sed tenetur error rem rem. Odit eum iste quia consequatur sed minus.
Omnis ut dolorum voluptas qui maxime laborum aut adipisci. Praesentium quas quo ut voluptas. Odio fugiat ad quis dolorum corrupti iure quasi.
Autem sint perspiciatis est. Minima deleniti est quas qui deserunt molestiae expedita neque. Est voluptas natus sunt enim voluptate ipsum. Non beatae distinctio officia ipsa praesentium.
Nesciunt sed accusamus quos magnam ea aspernatur vitae. Corrupti exercitationem et sequi occaecati qui est incidunt. Maxime provident quos iusto tempore quo quod impedit. Accusantium sit deleniti nesciunt aut rerum et.