How to get into MM fund biotech team
I’m a healthcare banking analyst at a BB. There are many guidance on how to get into HF in general. but i wonder how different is the prepartion process for life science team gonna be? I assume understanding in science is needed. Other than that, is valuation model required? Do i need to understand the trading? How’s the requirement gonna be different from MM to SM HF, if there’s any?
Any advice/insights are much appreciated.
At the MMs getting into biotech takes knowing someone on the team or having previous biotech investing experience. Most people lateral from SM or join following MD/PhD with some sector exposure. Style is very catalyst driven in SMID cap biotech and requires a different skillset (analyzing science, clinical data, competitive landscape) compared to other sectors which are more earnings/growth driven.
SMs are even more pedigree driven than MM. Vast majority of biotech investors have advanced degrees from target schools. Prior experience in biotech (internships) is almost universal to get in given competitiveness and low number of seats. Investing style differs from MM in that there are longer investment horizons, net long vs market neutral, concentrated bets, TC is very variable, slower promotion.
You need to be an expert at asking management what the bar is and making a nuanced interpretation of their body language. Once you have established a long or short position based on whether management body language is bullish or bearish, you tell as many people as possible as loudly as possible how management sounds in order to get the stock to move in your desired direction. That is the skill set needed for biotech investing at a pod - it is very difficult and requires very specific subject matter expertise.
Based af lol
Is this legit? Interned at a MM in university and a lot of my analyst's coverage was 20bn market cap stocks in a somewhat sleepy industry. Man would spend most of the day on phone calls telling other analysts his opinions / what he heard / "big if true" type of conversations.
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