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What are some of the qualities that your best associates have had, and what generally made them stand out from other poorer performing associates? Besides passion for the sector/job, which is a given.
Any general advice/wisdom for newer associates?
Also, it would be helpful to hear your background and experience as an analyst. What led you there, how many years did it take etc.
Disclaimer: my views are my views only and may not be reflective of everyone else in in the industry. What works for me may not work for everyone else
What are some of the qualities that your best associates have had, and what generally made them stand out from other poorer performing associates? ---- I've been fortunate that I've had very few poor associates. I guess that comes from the screening and vetting process I conduct. Where I have had poor associates was with "bad attitude/non team player." Most of my associates have eventually been promoted to senior analysts or have gone on to prominent positions in industry, all with my encouragement when the time was right.
Besides passion for the sector/job, which is a given.
Any general advice/wisdom for newer associates? ------- Never stop being curious and learning as much about the industry as you can. Of course many senior analysts really don't want their associates to be "too good" for fear they will make them look bad or leave to be a senior analysts (aka competitor) at another shop. All depends on whom you work for.
Also, it would be helpful to hear your background and experience as an analyst. What led you there, how many years did it take etc. ------- Studied undergrad/business degree for the industry I currently cover. --------Worked in that industry for several years after graduation. --------Next, went to work on wall street for several years in Sales and Trading in a pre-mba role. --------Got MBA at top-30 business school. --------summer internship at well known hedge fund covering current industry. -------- One year at non-bulge bracket investment bank covering current industry. --------Three years at bulge bracket on top ii team as senior associate and given several names under coverage. --------Promoted to senior analyst in early 2008 at said bulge-bracket bank. Subsequently let go one month later due to downturn. Promoted and fired within a month (!) --------Quickly found position as senior analyst/MD at non-bulge bracket but well known shop. Stayed 4 years. --------Lured away by well-know non-bulge bracket with better compensation package. Been MD for 5 years at said shop.
Which sector should I avoid at all cost if any? ------- I don't think there is an answer to this. Some people think my sector is "boring" but I find creative ways to make it exciting.
Which ones would you recommend if any? ------- The one where you have any sort of background or work experience in is always preferable.
Also have you seen any newcomers fired right after their probation period? ------- Very rare. Usually only happens when a shop suddenly shuts down. It takes a lot of time and expense to hire someone and typically if it is not working out the person is given ample warning(s) in hopes they will improve.
Anything you wished you had known when you first started? --------For 90% of sell-side analysts, the word "research" is a misnomer as for this 90% their research is simply a re-hash of publically available information; hence no use to the buyside. Don't be the 90%, be the 10%, and you will have a long and successful career. Also valuation calls usually don't work. I tell my clients (for the most part) that I really don't care about valuation such as P/E and EV/EBITDA; Free cash flow yield is a different story.
This is interesting -- thanks for doing it!
Few questions on your relationships with the buyside;
Do you get offended when a buyside analyst keeps you out of a management mtg when you're hosting a roadshow? Always wondered about this as our company explicitly doesn't allow the sellside guys in the mtgs.
How frequently are you talking to the average hedge fund analyst vs. mutual fund analyst for similar tenured analysts (e.g. not in their first 6-12 months covering the space)?
How much visibility do you have as to which buyside analysts are sponsoring you in the broker vote? Or is it all just lumped together in a firm-wide allocation at your end?
Have you ever had a bad experience with a mgmt team after you downgrade their stock, or initiate with something other than a 'buy'?
thanks!
How old are you and what is your compensation?
45. Base 300k Bonus 400k Still room for some upside this year, tbd...
So what I am about to tell you is far easier said (written) than done, and again this is what works for me and may not work for everyone:
For the stocks you cover, find the #1 driver that moves your stocks. For my sector it is an industry-specific measure of revenue. And using Big Data and Alternative Data sources that collect such revenue data points I can get a better read on those future revenue trends than anyone else in the world.
Also find a boring sector and turn it into the greatest thing since sliced bread. People may think you're a bit crazy, but they'll come to realize you really know your industry and are interesting to talk to about it.