Maybe a tough nut to crack, but would much appreciate any advice if any experience/insights.
Event-driven equity analyst at a well-known EU market-making firm looking to move to a fundamental equities L/S role, is this even feasible? For those that haven't come across, an equity analyst at a market-making firm is a fairly niche research role: you're assisting traders in interpreting market news and prepping for potential tradeable events (certain earnings, court cases, drug trial reads etc). You don't really do in-depth modelling work yourself, some very basic BOTE work on consensus figures to prep for the full range of outcomes and try to be fastest in interpreting the print vs expectations (I'm lucky with my pod placement as I get to somewhat supplement this with some basic DCF/SOTP type modelling work).
First year in, but have realized this isn't the job for me. To put it bluntly, the main $ edge comes from speed not quality of analyst opinion, so there is little incentive for the firm/seniors to invest in developing your analytical skillset you'd otherwise see in traditional ER/HF roles (at least at the place where I'm at). The primary positive here is that you have great access to a wide range of sell-side shops: 1on1 analyst calls, notes and DCF models. I've been putting work in on the weekends to utilize these resources (alongside some modelling courses, Fundamental Edge etc) and try my best to learn the MM HF type technicals, but it certainly feels like swimming upstream.
How would you even approach this move? Would a lateral to a full fundo equity L/S pod be possible/feasible here? Would pushing for some sort of M&A/Tier 2+ SS ER role instead make sense? Or would the best bet be to give another go at the SA pipeline by doing another masters or MBA? Have a decent MFIN one already from a target school + one year of SS ER experience from a crappy no-name shop in between degrees.
Thanks all.
Based on the most helpful WSO content, it seems like you're in a bit of a pickle, but don't worry, I've seen trickier situations.
First off, it's great that you've identified what you want and what you don't want in your career. That's half the battle won. Now, let's talk about your options.
Lateral Move to a Full Fundo Equity L/S Pod: This could be a bit challenging given your current role doesn't involve in-depth modeling work. However, your basic DCF/SOTP type modeling work and your efforts to learn MM HF type technicals could be a plus. You'd need to really sell these skills and your understanding of the market in your interviews.
M&A/Tier 2+ SS ER Role: This could be a more feasible option. Your current role involves interpreting market news and prepping for potential tradeable events, which could be valuable in an ER role. Plus, your access to sell-side shops and your weekend efforts to learn more could help you stand out.
Another Masters or MBA: This could be a good option if you're not in a rush and you're willing to invest the time and money. It could give you a broader network and more opportunities to land the role you want. However, it's a big commitment and there's no guarantee of a job at the end.
Remember, there's no one-size-fits-all answer here. It's about what fits best with your career goals, your personal circumstances, and your gut feeling. Good luck, and remember, even a monkey had to start somewhere before he could climb to the top of the tree!
Sources: Amazon and your groceries -- would you choose Amazon, Kroger, Costco, or other?, Automating Automation | The Daily Peel | 4/24/2023, Is retail like we know it dead?, PNC to acquire BBVA's U.S. Operation - A sign of things to come
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