Sell Side Equity Research
I have a couple offers to work at a various middle market IBs as an equity research associate. I have narrowed down my choice to two IBs and I'm trying to size up the opportunities at each. I guess the goal is to get an MBA in 3 years and make the transition to a bulge bracket firm, assuming the opportunity arises.
I know the reputation of the analyst I would be assisting is a major consideration. But, if neither analyst is widely reputable and both IB's are smaller niche firms. How do you differentiate or scale up the opportunities? Does it just come down to comp package and geographical preference?
Can anyone think of relevant considerations that would be helpful in making such a decision? Thanks.
Potential progression
What's the point of going from boutique ER to bulge bracket ER?
Good question.. I missed the recruiting season in the Fall for BB firms and so I just recently started applying about 3 weeks ago. I figured MM firms don't have a typical "hiring cycle" that BBs have and so I thought the probability of landing FT employment post graduation was higher in MM than BBs. I guess that is the point. I don't want to work in a MM LT but those are my options at this point.
OP- Working for a boutique isn't the same in ER as IB. A lot of the best research comes out of boutique shops. Your exit ops may not be as varied, but within the industry you cover (assuming you work for a good analyst) you will have little to no trouble moving around
That said, maybe you meant come out of your MBA and move to actual Investment Banking?
Sorry, maybe I made that sound easier than it will be...
I cant speak for everyone else but the training is lacking.. sorely lacking compared to the bulge bracket counterparts..
I don't want to change to another BB vs. boutique discussion thread.
But, if your end goal is an MBA or buyside, I just don't see much marginal benefit of going from boutique ER to BB ER.
It seems like at the end of the day you'll just be cranking out report/models for another analyst but you'll be learning the company's from scratch again (which can be a PITA).
I think the sector you'll be covering should be an important part in your decision making process. While its certainly possible to move to a different group at some point, your options will be much greater staying within the sector youve been working in.
Folks,
What are the exit opportunities for a sell side Equity Research Associate in (say) 3 - 4 years.
Some say - 1) Buy Side (Under asset managers etc or portfolio mgrs), 2) Industry (the analyst covered).
What other opportunities are there ?
How would you value sell-side equity research? (Originally Posted: 11/23/2015)
What should I be asking buy-side portfolio managers and analysts?
Here is what I'm looking at: - Read Ratio (i.e. how many emails received vs sent) - Dependence (i.e. 80% their own idea, 20% sell-side) - Ideas vs Content (i.e. do they use them for the technical stuff like models or actually listen to their views)
I would not ask any of those questions in an interview with a buy-side PM. They will most likely just derail in the interview without showing your interest in the team or how you can add value.
If your interviewing with a buyside PM or Analyst your focus should be on their investment process from idea generation, initial buy process, and ending with selling discipline. Then you should try to gear some questions about you can bring value to the team. Do you have extensive modeling experience? Are you good at building factset/bbg screens? Do you have some niche accounting or debt covenant experience that you can bring to the team?
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