Breaking into equity research - Graduating senior from a non target

well I am a graduating senior from a non target, with two internships under my belt, one is on the research side for a big wealth management firm and the other was an overseas opportunity in africa in which I might add was a great experience. I am looking to get into equity research and will start applying during fall recruiting. Any ideas on what these recruiters might look for. Note that I didn't have a summer analyst position in equity research but I do have research background, so will that be used against me in some sort of way??

 

why would it be used against you? if anything it would help. you dont need to have SA to get a FT offer in ER, its not like banking. and are you trying to get into ER at a BB or at a research firm like morningstar or bloomberg? either way, breaking into ER is a cakewalk compared to IB and bloomberg/morningstar is probably even easier than BB PWM, so just have a high gpa from your non-target, format your resume properly so its clean and professional (the more colors the better... and use borders too. KIDDING), and brush up on vault guide for equity research (if there is one) and the state of current markets, and you will be set for interviews.

hope that helps. im currently doing an ER internship as a rising junior (not at a bank) so if you have any other specific questions let me know.

 

Hi, I'm in a similar situation in that I will be a senior at a non-target liberal arts college (top tier but still non-target). I would like to get into a bulge bracket sell-side research, however none of them recruit at my school. I have a 3.7 GPA with an economics and math background. My internships include doing equity research for a small cap buy side fund (lots of modeling, Excel, valuations, etc.), management consulting at a boutique (not well-known), and wealth management at Merrill. In addition, I've been on a student investment fund managing a 6 figure portfolio. Unfortunately, I can't find any alumni doing ER, although I have found I-bankers at BB who usually get in through connections.

My questions are: 1) What are my odds of getting an interview without any connections? 2) How stiff is the competition? (probably not as stiff as banking) 3) How much does getting in contact with a recruiter help? 4) Will my resume even be looked at w/o connections? 5) What do FT and SA stand for?

Thanks for your time.

 

1) What are my odds of getting an interview without any connections? Decent - based upon your extra-curricular activities.

2) How stiff is the competition? (probably not as stiff as banking) Stiff - there are fewer spots than in banking so even if there are fewer applicants, the ratio of interviews to offers is similar.

3) How much does getting in contact with a recruiter help? Not really at your level. Better to apply to the firms directly.

4) Will my resume even be looked at w/o connections? Yes - even if its to confirm that it definitely belongs in the bin. What makes you think connections matter at this level?

5) What do FT and SA stand for? FT = full time, SA = summer analyst. There are very few SA positions in equity research across the street. By the time you get them to the point of doing anything useful, they're gone.

You're welcome.

 
Best Response

I am a non-target with a similar GPA that just broke into Equity Research at a MM bank.

My advice: -CFA is huge. A lot of candidates are starting to list being a candidate on their resume, but it doesn't mean much until you actually pass one level. If you're serious, you need to start studying for the June exam in January and be able to talk about it/know what it entails. I passed Level I in June and it immensely helped me as a I graduate in December. -If you haven't already, invest in your own portfolio. Doing the research and putting your own money on the line is huge and shows that you have an actual interest and some experience. Often times I was asked about the best/worst investment I've made in my portfolio. -Start doing your research reports. Create a 2-4 page write-up on a stock you like with an investment thesis and supporting facts and research to back it up. I brought two of mine to each interview and they liked to look them over and ask you questions. Putting in the effort to create these write-ups shows an interest. -You will be asked for a stock pitch, which is why doing those write-ups helps. Practice a 1 minute stock pitch until you have it down. Have a few in mind, in various sectors, in case you're asked by certain ER analysts that cover one of your stocks. Also have a short to pitch if asked. -Reach out to alumni from your school at firms you want to work for. Keep it brief but ask for a quick call so you can hear more about their experiences as you want to gain some insight in a similar career path for yourself. People will respond, don't worry. -Practice your interview questions. Know your technicals and valuation methods (even apply these in your write-ups) like DCF, DDM, relative P/E, comps, etc. Also craft your "story" about why equity research or investments. Research the hell out of the firms you get interviews with and know why you want to work there and be able to sell it. Reach out to people that work as analysts at those firms you're interviewing with. They can give you culture insight and it really shows that you want it. -Keep up on the markets. I kept a running document of the latest economic data (GDP, jobs, unemployment, sentiment, manufacturing, etc) and had it memorized. This will help you come up with your answer to "where do you see the economy going or what is going on in the markets lately" which you will be asked. -When you go into an interview, write down the levels of the S&P 500, DJIA, Nasdaq, 10-yr treasury, etc so you know these if asked. -Apply around. I ended up applying to 30 different firms. If you spread your net wide and bust your ass, eventually things will turn your way. -Resume- Overall, good formatting, looks clean. I would ditch the objective line.

 

check all the links in this thread http://www.wallstreetoasis.com/forums/overly-cautious-networking

also post a word doc of your resume, i will try to modify it, just to give you a different perspective .. please remove the name if it is your real name ... try to keep your online presence anonymous just to be safe...some firms check your online presence/activity make sure your facebook, twitter is clean

also buy the BIWS program or the WSP program if you havn't already ... and the BIWS program will increase its cost on December 19, 2014 .. just so that you know

you are on track ... specially if you do the paper portfolio thing ... your own research, updating that research etc

if you use the WSO resume and networking and mock interview trainings etc .. it will only help ... its a once in a lifetime sort of thing why not give it a shot ... also ask Patrick for help he might give you a few tips as well

 

How much do you read? I just finished my Freshman year and I'm currently an ER SA at a MM IB. I had an informal IM internship over my winter break, but that didn't really land my position for me. I also have a sub 3.0 GPA and go to a non-target.

The key is to have a genuine interest in equities and the market. If you fill your time reading books like the Intelligent Investor, Margin of Safety, Buffets books, etc and stay on top of what's going on in the market then you should have no problem nailing an ER interview. Taking the BIWS courses would be beneficial too since a lot of ER is modeling.

You shouldn't have any problems spinning a ML PWM internship into a good story for why you want to get into ER. You should start networking now, though. Get a LinkedIn account and start looking for alums from your UG that work in ER, or at a firm that has ER groups.

 
StryfeDSP:

How much do you read? I just finished my Freshman year and I'm currently an ER SA at a MM IB. I had an informal IM internship over my winter break, but that didn't really land my position for me. I also have a sub 3.0 GPA and go to a non-target.

The key is to have a genuine interest in equities and the market. If you fill your time reading books like the Intelligent Investor, Margin of Safety, Buffets books, etc and stay on top of what's going on in the market then you should have no problem nailing an ER interview. Taking the BIWS courses would be beneficial too since a lot of ER is modeling.

You shouldn't have any problems spinning a ML PWM internship into a good story for why you want to get into ER. You should start networking now, though. Get a LinkedIn account and start looking for alums from your UG that work in ER, or at a firm that has ER groups.

Nice.

Under my tutelage, you will grow from boys to men. From men into gladiators. And from gladiators into SWANSONS.
 

Network. CFA. Network. Be open to sectors you don't know anything about. Network.

Work on a couple (You probably won't ever get asked for more than one, but just in case) of stock pitches and know them COLD. Research is a sales job. You have to be able to sell yourself, and you have to be able to sell your picks. Showing you can do that in the interview certainly helps.

 

I'm currently in the same boat as you, except with internships in IBD, buy side research and S&T (although all boutiques). ER/AM is very tough to break-in in general and extremely so this year. My suggestion is to try to gain some sort of internship experience.

 

Networking, scouring Linkedin for people with similar backgrounds/alumni, building a model for a company you're interested in and coming up with a 1-2 page summary of a buy/sell recommendation (Google around/search on the site - I think U of Michigan has an outline online but don't quote me on this), starting to invest in your own portfolio with real money and being able to talk on what/why you bought/sold and what you've learned from it (nothing crazy $-wise here, just shows you have an interest in the market), etc. Tons of info on the site - just look around. Seriously though, alumni and Linkedin have been very helpful networking-wise for me even from a non-target school.

 

If you take a look around the ER forum, that'd probably be a good place to start. Also, check out the Best Interviews underneath FAQs. Loads of stuff on ER, should give you a better idea of how to break in and what to expect as an ER analyst.

 

lol

[quote]The HBS guys have MAD SWAGGER. They frequently wear their class jackets to boston bars, strutting and acting like they own the joint. They just ooze success, confidence, swagger, basically attributes of alpha males.[/quote]
 

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