How does equity research work in Asset Management
Hi,
I have a year of investment banking experience, but have decided equity research is a better fit for me, and is what I am pursuing.
I arranged an interview with the asset management division of a BB. My question is this - how does research work on the asset management side?
Lets say I am a portfolio manager; am I using my banks sell-side research and focusing on allocation? Do I have my own team that does its own equity research?
I am trying to prepare for this interview, but I am focusing on research principles without really understanding the process. Any input would be great.
Thanks.
bump
definitely interested in knowing more about this.
Bump, also just a question is ER--->HF better or is AM ---->HF better I know people picking AM out of college instead of ER and my ultimate goal is to work at a HF and was wondering is AM or ER is better.
I know a little from looking into this myself:
AM generally does in-house research. As a PM, you will likely have your own team of analysts, and the firm might have analysts divided up into industry groups too. They supply the research. Sellside research is not too useful. It's available to anybody willing to pay, and is generally priced into the stock.
Sellside ER analysts can sometimes be useful for additional clarification if you catch them on the phone; they often have deeper relationships with company management than buyside analysts.
For HF, it's hard to generalize. Generally trading is preferred, then IB and ER depending on the firm. There is not a lot of movement between traditional AM and HF; they attract a very different type of person.
^ thanks for the info.
Do people that work in Asset Management normally do equity research? (Originally Posted: 06/14/2013)
I am currently doing this on an internship and am wondering if it would look odd for me to add it to my resume
Why would you not add it....? It shows that you have experience analysing stocks which, last time I checked, was pretty essential for asset management.
As Asatar said... why wouldn't you add it? No matter what you are analyzing be it fixed income, equities or derivatives absolutely put that experience on your resume.
"Asset Management" defines a lot of different job functions that fall under the umbrella. ER, HFs, PWM, etc... all technically fall under the AM umbrella. If you play any role in the investment decision making process then I would say it falls under AM. ER provides the research that is necessary for a lot of PMs to base their investment decisions from.
Very few people intern in SS ER, a lot fewer in BS ER. It's a small industry and there isn't as large of a formal process for internships as there is for IBD.
Definitely include any relevant experience. Sounds like you need to read up on the industry a little bit.
Thanks guys. I've been reading up on the industries but I agree that I need to read more. I really want to go into Investment Banking, but this is the only internship I could manage to get this summer. (summer before freshman year)
But anyway. OP you should definitely include it on your resume. ER is an extremely vital part of the investment process.
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