Equity research operations

Hello guys 👋

As a person interested in ER, I have a couple of questions about how the whole process is organised:

1) Who is responsible for creating models for specific companies? I mean, for example, there is a group of 5 members analyzing Western Europe Telecom companies and the Q3 earnings of Deutsche Telecom came out, is there any specific person who is responsible for a whole research report, or..?

2) How the initiation of new coverage is done, and again who participates in analyzing the company, is there any specific person in the group or they are working together? If last, how they 

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1mo 
nutmegger189, what's your opinion? Comment below:

Will provide a long(er) answer cos I have time:

Before I begin, just making sure that you understand when I say analyst I mean covering analyst and when I say associate, I mean a junior (research associate) with no coverage. This is not the same ranking as analyst -> asso -> VP etc.

1) Creating models is very different to updating models or writing a research report. Building models: Analyst or associate depending on how green the analyst is and where the junior is in their development. Updating models: generally the associate assuming there is one on the team. Writing post-results research reports: analyst or associate. Should be associate but sometimes analyst's will bash one out. Analyst normally does the actual idea generation/overall analysis, with help from associate.

2) Ultimately the responsibility of initiating falls on the person who covers the company (the analyst), but in reality many associates "shadow" cover some companies so they may end up doing 90% of the work even though formally the analyst covers it.

1mo 
nutmegger189, what's your opinion? Comment below:

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