Equity Research Value Investing
I'm currently a student in college and am extremely interested in equity research, but also have a fondness for value investing. I've read and continue to read many books on the subject. For most Equity Research positions on the buy-side, would taking this mindset into an interview be a hindrance? It seems like most equity research aims to put a target price in the near-term, without much regard to longer term holding, but I could be completely wrong on this. I don't want to plan a lot of theses around this mindset if most firms don't subscribe to it, but at the same time I would be very interested to learn which this would appeal to. Thanks!
How could it possibly be a hindrance to have an investment opinion/style if trying to work in investing?
Of course it doesn't hurt. Most firms will say they subscribe to a value philosophy anyway, even if they're not 'deep value' 5+ year holding period one-idea-per-year shops. Everyone is trying to buy/sell mis-priced assets, there's really not another way to make money in equity. But really, the best theses come from understanding the business/industry and making calls based on what fundamentals will look like over time, and I think that's the real insight from value investing anyway. I would suggest trying to shorten your time horizon if you're interviewing at more hot-money shops. Catalysts are key, but you still need an understanding of the competitive position of your company, the industry structure, etc.
Value Investing Equity Research (Originally Posted: 05/05/2016)
I am currently a rising senior working at a mutual fund this summer. I have come to the conclusion that I am a value investor, and would love to continue this passion in my career as a research analyst. I have networked with one deep value company for several months already, but I was wondering what are some other big names, focusing specifically on value, that regularly hire ER analysts.
Would love any help or direction in my search.
http://lmgtfy.com/?q=value+investing+firms
But seriously, there are a ton of them out there. Some of the more well-known ones are Brandes, Dodge & Cox, Barrow Hanley, Royce, Third Ave, Hotchkis Wiley, FPA, Harris Associates / Oakmark. Only a few of them hire undergrads though.
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