Hey all, I'm a recent MBA graduate from a top 50 business school and have equity research internship experience on both the buy and sell-sides in NY. I was also a summer associate at a boutique last summer.
I've been approached by some independent research firms like edison - any thoughts on these firms before I proceed?
Thanks!!!
May want to be a bit more specific, but here's an old thread on some independent firms https://www.wallstreetoasis.com/forums/what-are-the-best-independent-re…
Edison is basically paid-for research. Would stay away if you have other opportunities...and probably even if you don't.
I work for an independent firm currently though am leaving shortly. No trading, IB, Asset Management which means you have no distractions and less compliance issues - more focused on actually research and becoming an expert on your industry.
How do Independent ER Firms Generate Revenue? (Originally Posted: 03/17/2014)
Is it through trade commissions like at BBs or through institutional investors paying specifically for pieces of research? How much harder is it for an independent ER firm and how profitable can these firms be? thanks in advance for the input
Soft or hard dollar payments --- that will depend on various circumstances like the quality of the trading desk, type of research, etc. It is definitely harder for independent shops these days given revenue is down across the board and many do not have other areas to help subsidize them (although some have IB operations). The $$s from clients go much farther at a small operation than "votes" (if you already have a good reputation).
Edited
So boutique firms don't jus sell research, they excecute trades as well? would be interested in this topic also
Obviously depends on the place, but yeah - some just sell research directly and some have execution S&T desks. Some employ a hybrid payment structure.
Hard dollars, accounts will usually pay a fixed fee in exchange for subscribing to the research product - with regards execution a small research boutique will often be a commission sharing agreement with one or more major sell side banks. If its big enough it will have its own execution desks.
+1
thanks for the info, how much revenue can a boutique ER firm generate this way? I'm assuming the research pieces are expensive but will enough buyside firms subscribe to make it really profitable? Many cite boutique and independent ER firms as the future of research so I am assuming there is some money there
Independent ER shop Reputations (Originally Posted: 12/13/2013)
Anyone familiar with the reputations of Evercore or Jefferies research? Thoughts on the firms? Generalizing, would it be difficult to move to a L/S HF or buyside with some years at these sort of places?
I work on the buy-side and have used both, probably Jefferies more. Haven't heard of people leaving these particular firms for HF but if your senior is well known in the industry then it isn't out of the question. Going to long only from both these shops should be feasible.
Thanks man that helps. If you can chime in what seems to be the some of the more important factors in jumping to the buyside as a junior associate at these type of research shops, outside of luck and timing obviously. Is it just analyst reputation? Client contact? Pedigree? The industry you cover (hear tech helps with HF's)? Firm reputation come into play?
Sanford Bernstein is the top independent shop in most people's opinion.
Thanks man that is very helpful, appreciate the info. Anyway you suggest gauging analyst reputations outside of II rankings? Trouble is I can only find the top 3 and runner ups in each sector, and most of those go to BB's and Sanford Bernstein and the like, which are tough to land as a recent undergrad.
(Sorry cannot PM yet)
It's kind of hard if you are not dealing with them on a day to day basis....maybe the rankings that WSJ puts out. Most MM shops have pretty good research groups...example RJ, Piper, Baird, William Blair, Jefferies, etc. Also, these aren't independent as they still have banking arms.
The boutique places are not necessarily easier to get in to. It is simply hard to get in to ER due to the very limited need for additional headcount across the entire SS research industry.
Although there are names that are seemingly much less known to the wider community (outside of SS ER), which could provide you with a nice launching pad.
For Europe some of them may include: Berenberg Bank, Autonomous Research, Redburn Partners and others.
Interning at an Independent SS ER Shop: What to expect? (Originally Posted: 01/20/2018)
Hey guys,
I am a freshman who is really interested in working in ER or AM as a future career. I have been fortunate enough to receive a summer position from an independent ER shop, but I am not sure what to expect. When I asked my interviewers what my job would be when I was interviewed, they said they also were not sure and we would only know closer to my start date when it becomes more clear what kind of help is needed. I am just wondering in you guys' experience, what do ER interns typically do?
TheZhanMan, shame nobody has responded. Maybe one of these topics will help:
No promises, but sometimes if we mention a user, they will share their wisdom: @Mamarcosmgm17" Cmbakerj analyzed
Fingers crossed that one of those helps you.
Independent Equity Research (Originally Posted: 05/15/2011)
I have a job offer from ranked independent equity research shop in NYC ranked in Institutional Investor Top 300 All-American . My group will be doing quantitative stock selection and portfolio strategy. It is a great opportunity for me and I am very excited. I am interested in getting some opinions regarding the career in independent equity research as well as compensation structure. This is for post-MBA analyst position from top 3 business school. Thanks.
Take a look at WSJ's "Best on the Street" analyst rankings that came out last week:
http://online.wsj.com/public/page/best-on-the-street-05102011.html
Most of these places are small specialty shops that focus on a particular industry. I think that these sort of niche firms are great places to start your career if you can't squeeze into a bigger bank. Goldman Sachs analysts ranked? One. Morgan Stanley? One top 5 placement.
if its ISI, it's probably worth it.
What's ISI? I heard a lot about it but I'm not sure which firm is meant. This? http://www.isicapital.com/index
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