AM industry.
Hi guys,
So, I've been reading into the Asset Management industry recently but I am still confused about a few things and would greatly appreciate help from any of you.
I'm currently applying for asset management summer internships and am curious how best to prepare for these. Naturally, I will stay up-to-date with the markets, but what about skills. Do I need to learn valuations and the like or focus more on general reading into the markets?
Thanks.
depends on what the role is; AM can range from sales/marketing to equity research to quant work. Obviously if you're part of a fundamental fund then knowing valuation techniques is key. Your resume/networking will play a large role in determining what sort of groups you get interviews with, so consider that. Keeping up with the markets is really important (be ready to talk intelligently about a sector or company), and be ready to pitch a few trade ideas.
How do you recommend going about finding information about a sector or a company? I have an interview with an AM company and have to start from scratch learning about an industry and a company that I can pitch (the AM is focused on undervalued companies or companies trading at a discount to AM's estimation of their intrinsic value). Any help would be great.
Thanks.....
But is equity research the only opportunity in the investment side? What about commodities or FI?
well no, usually there are one or two analysts per group that assist with implementation (i.e. expressing investment theses into trades that get passed on to execution traders). commodities/FI will be doing the equivalent of research or implementation, but FI analysis by nature is either super macro or super fundamental. pure commodities funds are rare and I have no idea what exactly they do, probably a ton of macro-level views combined with a ton of quantitative work.
I see. So, there tend to be more opportunities in the ER side of an AM firm. What would you recommend for someone who's interested in the commodities sector?
Network your ass off. AM at my BB has an analyst class that is 1/3 to 1/4 of a S&T/IB class, and for a pure buyside shop you'd be lucky to even get an incoming position, let alone something specific like commodities. I'm pretty sure our commodities fund is probably 15 people tops,
If you're looking to make the sellside to buyside switch, I think our commodities S&T desk took around 5 interns. PM me if you have more questions.
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