Just to frame the discussion here, let's just say that we are talking about a post-MBA position and the subject also has his/her CFA. At the junior level, what are the differences in the day to day roles/responsibilities? How do successful employees progress in each position over the first few years and how do their responsibilities change as they do? Obviously the types of firms in each case create variables-- examples would be great. All knowledgeable feedback is welcome.
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Just to add a little relevant info for anyone with knowledge or experience to debate (or for anyone without to read), here are two links:
http://equity-research.com/a-day-in-the-life-of-an-investment-research-…
http://www.analystforum.com/forums/cfa-forums/cfa-general-discussion/97…
the question doesn't really make sense... 'Investment Management' incorporates a whole multitude of roles....
Are you asking about sell side research vs a buy side analyst?
Buy side analyst vs working for an AM Fund, yes.. at the junior level.
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I'm going to assume you mean the difference between a research analyst in a centralized research department of a large asset manager compared to a junior PM at the same firm.
Something like 80% of the people in the research department will be gunning for a PM spot and very few will actually be able to do so. The job ends up looking like sell side research, in that you specialize in an industry (although usually you cover a lot more names and there's obviously not the marketing component). Because you're so specialized, you don't know as much about other industries and most importantly, you don't have money on the line, so you never learn how to properly size positions. That being said, it's a relatively cushy job as long as you are an expert in your sector. If your goal is to be a PM, take the junior PM role.
Although every point I made is moot if I misunderstood the roles you're referring to.
AM=buyside. Therefore, you could be a buyside analyst at an AM (i.e. buyside), so I think you need to clarify or rethink your question.
Thanks vagabond. What I meant was: "Do you mean the difference between being a research analyst (idea generation/coverage responsibility) vs. a portfolio management analyst (asset allocation, performance attribution etc?)." I'd also be interested in knowing more about your other suggestion: how working in AM at a BB (ie GSAM) differs from working for a strictly buyside asset manager.
It sounds like being a buyside analyst at a large enough asset management firm with a coverage responsibility is much like being a sell side analyst, minus the marketing. The biggest difference appears to be the idea that, since the buyside analyst is in an "idea generation" role (in addition to coverage), looking for actual ideas and not just putting out information and placing ratings on stocks, that it makes the role a little more interesting. Can anyone elaborate? Agree or disagree?
Can anyone describe in greater detail the role of a junior level employee working directly with a PM?
Thanks
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