Equity Research or Asset Management (Investment Management)
From what I understand, both roles can end up doing similar types of work when you first start. I was wondering which career is 'better', ER or Investment Management.
In terms of salary, I believe they start off equal at a BB. How does the salary progression compare later on? Can you provide actual numbers (base + bonus)?
I've read on here that ER can lead to slightly more exit opportunities (both lead to certain types of HFs. However, people in AM tend to stay in AM). Can someone elaborate on the exit opportunities and how they differ?
In terms of lifestyle, AM is closer to 9 - 5 whereas ER can be 12+ hours depending on how busy the department is.
How does the work progress as you move up the ladder?
Are there any mistakes in my assumptions?
I'd appreciate any further insight you may have.
Thanks.
I mentioned Investment Management in the title and my post. I'd like to find out more about IM specifically at a BB.
@allinthegame - So why would you say ER is better? Is the work not quite similar in beginning?
You're not understanding my question: what will you be doing there? Research? portfolio management? Operations? Sales?
Would it be for mutual funds, hedge funds, separate accounts? What asset class? That's what I'm getting at.
Who the fuck told you AM is 9-5?
ER. unless AM is at PIMCO/BlackRock megafund and your are in FICC
why FICC?
He lovesss FICC.
http://www.wallstreetoasis.com/forums/fixed-income-research-1
Most BB AM groups are pretty lackluster, no offense to anyone who works in one. Top PMs generally do not work there (exceptions exist). They are often psuedo-index funds.
However, AM shops like Fido, BlackRock, etc. provide the rare opportunity to do buyside research from undergrad. They are very selective. Although mutual funds do not exactly produce world beating performance, the PMs are generally very smart (they just know it is better to stick to their benchmark than swing for the fences).
Regarding ER, it is a different ballgame. Outside of a few independents (Sanford Bernstein), you will be working for a bank. The modeling might be similar, but the long term career is totally different. ER is also very selective; the teams are small and turnover is relatively low.
I would say you should figure out what you want to do long term, then shoot for that. But, if your dream is AM, ER makes a good fall back (and vice versa).
OP...listen to this.
By Fido , do you mean Fidelity?
Lol ER as a fall back.
I mean it goes both ways. It is just more places to apply. I would recommend applying to AM firms as a fall-back for ER too...in this job market, it can't hurt.
good question
Differences in values: Equity Research and Asset Management (Originally Posted: 06/19/2014)
Sorry for the re-post: I did not get any responses in the last discussion
I know that the actual terms may offer AM under Equity Research (or vice versa). I was wondering if there were specific skills that would be useful in both fields: I haven't really decided which path was more suited for me. However, I would like to brush up on values that would be favored in both topics. Moreover, is there are standout skills in each field?
I apologize in advance if my question is vague and naive (sounding). I just never really understood the differentiated needs and skills I need to specialize in each category. Thanks guys!
Also if you ca include certain programs that help either or let me know.
So it sounds like you're trying to compare working in Equity Research on the Sell-Side vs. the Buy-Side. The difference is that on the sell side you create reports with recommendations on a couple of stocks in your designated industry or sector and then sell those reports or give them to others in your bank so THEY can make investments. This differs in the buy side where you're the one making the decisions based of your own research as well as some the reports created by the sell side.
Other differences are that hours are better on the buy side but you're also much more responsible because you're deciding to make the investment whereas, on the sell side, it doesn't matter as much if a stock you're covering tanks. Also sell side has to have much better writing skills because of the reports they write.
Agree with most of what undervalued wrote. On the sell-side, your job is get buy-side analysts interested in your work. More interest in your work = more commissions / soft dollars = better review for you. Industry knowledge and contacts are often as important as actually being right about an investment call.
On the buy side, your performance is the main driver of your long-term compensation.
Not true in my opinion. The vast majority of sell-side reports are "flash notes" / quick updates that almost anybody could write. In fact, an increasing amount of SS research is being outsourced for this very reason.
some information on ER, AM insinde IB and AM tasks (Originally Posted: 07/03/2013)
hello! i managed to get admitted to a MSF (as some other users in this forum) in a top tier university in europe coming from a non-target school. now i am looking to my application form and my career paths but i'd like to gather some more information about Equity research tasks as well as those performed inside the Asset Management divisions of IB and those in the more traditional asset management shops (should they differ from the AM arms inside IB) [equity/bond oriented]:
ER, associate [starting]: to my understanding it's a mix of updating models, preparing stuff for the analyst (especially notes left from the analyst), analyzing business models, visiting companies (even at associate level?), some financial modeling in general, some phone calls to get the day-to-day consensus in the investment world
AM inside IB, analyst [starting]: here this is where it gets blurred. i heard there are as many portfolio construction (econometric based?) roles as classic equity analysts. is there some sort fo face time? (especially in the PWM division). as for the portfolio construction roles, could you post what you actually do on the job?
tradition AM shops: echo of the above.
sorry if there is excessive generalization
any input is welcomed
bump
Institutional Sales vs Sell Side Equity Research (Originally Posted: 11/13/2013)
Hey guys and gals,
I'm a Political Science major at a UMich/UVA/Gtpwn school. I have offers for an Institutional Sales role at a large, growing Investment Management company with a great reputation. I also have an ER offer at a strong research sell side firm. I am very new to the financial services industry, but in a broad sense, I am interested in economics and public policy and the greater markets. I know I am interested in an investing career, but being new to the industry, I don't know exactly where I want to end up or how to get there.
So, my question is this for anyone who cares: which position would build a better foundation in the financial services industry? Which would put in better position to understand the opportunities in financial services, and also to eventually pursue them. If anyone has any advice, I would be grateful.
Thank you, I really appreciate it.
Do you know what industry/sector group you'd be with for the ER position? Anymore color on the firms you have offers from would help, too.
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