Who does more Excel modeling- Buy Side Analysts or Sell Side Analysts?
Hi guys,
I was just wondering, who does more (as a percentage of their day/time) Excel modeling- entry-level buy siders or entry-level sell siders? By entry level I mean "Equity Research Associate". My gut tells me that buy siders do way more simply because they are following dozens of companies they already own, or want to own, or want to sell, whereas sell-siders are following maybe 10-20 companies total. Thanks!
Sell Side analysts will be required to make their own models for companies under their coverage universe, and they'll also be putting together models for companies they're looking to initiate on.
Buy Side shops have more freedom with how they choose to approach their research methodologies, so some might find huge value in models and others not so much. At a large cap growth shop I interned at there was only one PM who really did anything with models. For an example of analyst/PM discretion, I interviewed with two different value shops recently - one of the PMs told me he only put together models for companies around 40% of the time, and even then they weren't really that comprehensive. At the other value shop the investment team is really on top of modeling all of their positions to a 10-30 year time frame.
I'm sure there are some other users who could expand on this a little more.
Wtf?
Didn't you get the memo? All the big players are transitioning to 20 year minimum investment horizons with 50 year lockup periods.
30 years x 4 quarters = fucked.
At my current fund, we only model income statements. The main reason buy siders model less is because of time. It is a lot easier to build three statement models, when you only cover 12- 24 stocks.
Most of the time the buyside takes the sellside's model and just mess around with the inputs. Alot easier then building one from scratch
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