ITG Research

For what it's worth, "Research Associate" might mean selling research that 3rd parties generate. For example, I know ITG bought Ross Smith Energy Group, a boutique O&G research provider. ITG's sales-people are the exclusive brokers of those research products. So it's possible that they don't want you to use your brain and analyze anything, but rather would prefer that you cold-call people on the buy-side and close sales.

That's kind of what I was worried about. The job posting specifically says company valuation and all that (lots of the typical ER responsibilities) and nothing about sales though, so I should be good. I'm looking to be a career analyst though so want to make sure I don't sign on with something that might stigmatize me to the rest of the industry. I'd be joining the (former) Ross Smith group fwiw.

For what's it's worth, they are top in class when it comes to the technical research. So I don't think it will impact you negatively, but it does mean you will have to spend 1-2 years there before getting into the ER role you want somewhere else (unless they do that now). I've also heard their hours are 'normal' O&G type hours, not IB or even ER hours, and you'll get to travel to some cool places about once a quarter and meet with buy-side clients.

Either way, please keep us posted as I'd be interested what their ER roles are like for future reference

I've definately got some good questions for when I meet them. The resource research and technical stuff is definately worth learning for this sector, but as mentioned I don't want to it impede on focusing on equities. Just have to ask them at the interview I guess. I'll keep ya posted.

As an ITG employee who works in research, I'd like to chime in and try to provide some clarity. We provide both macro research and firm specific coverage (most of the same firms BBs cover). Our research is more technical than your typical ER position, so if you're interested in slightly more quantitative roles it would be a good fit.

STIBOR:

For what it's worth, "Research Associate" might mean selling research that 3rd parties generate.

There is little to no sales aspect of the Research Associate position. It's similar to your typical ER entry-level role. As someone in a more junior role, my client interaction is mainly limited to providing/explaining custom research on specific firms to clients from time to time. RAs typically work more on providing the technical analysis that our research is based on.

woodywoodford:

I'm looking to be a career analyst though so want to make sure I don't sign on with something that might stigmatize me to the rest of the industry. I'd be joining the (former) Ross Smith group fwiw.

If you want to follow the analyst career path, ITG is a great opportunity. You get a lot of exposure to the typical fundamental research, but also are develop a quant skill set. Ultimately you're providing the same type of coverage, just with a more quantitative perspective. Also, the energy group is one of our best and most highly regarded, so it'd be a great position you'd be stepping into.

globalmacro:

I would guess it's mostly a company for engineeres with finance knowledge.

That being said, I don't know how much they cover in equities.

Correct. A lot of the research associates come from FE backgrounds, though it's definitely not mandatory.
ITG primarily focuses on equities. We probably don't have the same volume of coverage as BB firms, but it's continually expanding.

globalmacro:

I've also heard their hours are 'normal' O&G type hours, not IB or even ER hours, and you'll get to travel to some cool places about once a quarter and meet with buy-side clients.

Hours are typically in the 9-6 range and the work environment is very relaxed and open (business casual, casual fridays). It's a great place to work, and the company is moving more of its focus from the brokerage area to research because it is where we've had the most success.

That's great info, thanks! I actually have access to some ITG research, but its all on production and some specific regional plays. Haven't seen any of their equity stuff yet.

Can you elaborate on what you mean by a more quantitative perspective and skill set? And do they also look at the commodity market, things like transportation, storage, flows etc?

Given the hours compared to typical ER hours, how does the pay compare? I'm curious why the hours are so different and seemingly not tied to market hours the same way that sell side ER usually seems to be (ie at office before market open and late nights in order to publish notes for next day)

Either way, solid info, sounds like a good place

Yeah good info Smerf, I had the interview and liked what they had to say so we'll see if they call back. They did mention hours would probably be much earlier than 9-6 and weekends wouldn't be uncommon though. Are you in the Ross Smith office? I'm curious if you were one of the people I talked to...

Woody, I'm interested to hear more of your thoughts

Something seems off to me with ITG and the way they have represented themselves. First I emailed ITG when I saw the posting and received a reply from one of their people, presumably HR or something. She made it sound almost too good to be true. She didn’t quite explain whether it was true equity research, but did mention that overtime was the exception and not the rule, they aren’t like a typical investment bank and that hours are typically the 8-5 type of hours. She mentioned that travel is required, to location such as NYC, Denver, LA, Chicago (all the best buyside type locations).

Then we have smerf who comes on and his/her one and only post is as an ITG employee representing ITG. Again makes it sound too good to be true. The work involves all of the normal equity research work, but is also more technical and more quantitative focused. What does this even mean, how can you be more quanty (I get it on the technical play resource info, but not on a company level info). And to accomplish all of this ER work that is better than the competition, hours are only 9-6? I have never heard of anyone starting at 9 in this town, even in BO roles. And it just so happens the energy group is highly regarded

Then woody actually had the interview and they were saying hours are much earlier than 9-6 and weekends are not uncommon?

My take on all of this is that they are trying to attract the best talent, the people who are gunning for ER positions and have the chops for it. They are promising the world and then seems like they will slowly take it away one piece at a time. Seems to me more like a bait and switch type thing going on here. I don’t doubt the firm or their technical capabilities (it’s very good and we have them on retainer), I just think they are misrepresenting themselves to their applicants.

A friend of mine who does ER at one of the top Canadian banks mentioned ITG as having great research, when asked further he conceded on the technical side (without mention of the equity research side). So far that is true in my experience as well with the reports I have from them (admittedly being in O&G I am more likely to get the technical type of reports, but I have not seen any equity research reports at all).

Even in their job description they mention their clients being global and consisting of hedge funds, private equity, long only shops and oil and gas companies. Just seems like they are trying to invoke thoughts of ‘build your career here by working less hours doing better work and positioning yourself for the buyside’.

Which office were you applying to (can pm me if you want)? Because they definately talked about longer hours that are more like equity research (11-12 hr days, maybe play catch-up on a weekend), and that travel is common but not for a couple years, once you've proven yourself and can actually communicate with the clients (not much different than any other associate role).

As far as the research, from what I understand, they do buyside ER from a very technical standpoint, which is what sets them apart from the sell siders, but can also make it a little confusing to understand what happens from the outside. Ie. to value an E&P with significant Permian assets, they'll start by researching the Permian itself, which is a huge undertaking. They do still do the typical NAV modeling and stuff though, I assume the confusion might just be because they market their competitive advantage (the technicals). Basically a NAV model is only as good as the assumptions regarding the underlying asset values, which is what ITG focuses on.

I guess one other comment I can make, and this is purely guessing based on things said at the interview, I believe they focus on technical research right now because that's what the employees are good at - now they're bringing on people to get the financial/fundamental side up there as well. Like I said, that's just reading between lines so might not be entirely accurate.

That's useful to know. I decided not to apply due to various reasons, one being too many personal changes and two wanting to hone my skills on the commodity side first (specifically oil). My plan is to work on analyst skills in current role, long term to transition to either trading (paper, not so interested in physical) or ER. It'll depend on a few factors so I'm building my knowledge and laying the groundwork as much as possible on both paths before committing. The current role is great preparation for either path...

I'll take the rest of the discussion offline and PM you

why don't you checkout ITG on glassdoor? Company seems to be in trouble for the past couple of years. Has lots of restructuring

I would look at ITG Glassdoor! Company has restructured for the past 3 years.