MBB to biotech ER (and ultimately HF). Which ER firm to target?
I’m a physician currently at MBB. I am considering transitioning to SS biotech ER in the near future, and ultimately would be interested in landing a spot at a HF in biotech / healthcare.
1) What would be the most ideal ER shops to aim for to best set myself up for HF subsequently? Would it be the highly II-ranked firms (eg JPM, MS, BAML, Barclays etc)? How about GS, which does not participate in ranking? And how about smaller places like Cantor Fitzgerald?
2) Been reading that your ER analyst ranking matters as well. Is there an official place where i can find ER biotech analyst ranking?
3) Any advice on how to get a shot at those ER spots? Cold msg analyst via Linkedin?
Thanks all
When considering a transition from MBB to sell-side biotech equity research (ER) with the ultimate goal of moving to a hedge fund (HF) in the biotech/healthcare sector, here are some insights based on the WSO dataset:
Ideal ER Shops for Transition to HF: Targeting highly ranked Institutional Investor (II) firms is a strategic move. Firms like JPMorgan (JPM), Morgan Stanley (MS), Bank of America Merrill Lynch (BAML), and Barclays are known for their strong research departments and could provide the visibility and experience needed for a transition to HF. Goldman Sachs (GS), despite not participating in II rankings, is highly regarded in the industry for its research quality and could be a valuable experience. Smaller firms like Cantor Fitzgerald, while offering potentially more hands-on experience and possibly easier entry, may not carry the same weight in terms of prestige and network opportunities. However, they can still be a good stepping stone, especially if they have a strong focus or reputation in biotech.
ER Analyst Ranking: Official rankings for ER analysts, particularly in biotech, can be found through Institutional Investor's (II) rankings. These are often considered the gold standard in the industry. Another way to gauge analyst reputation is through financial news outlets, research awards, and by speaking with industry professionals. Networking with individuals in the sector may provide insights into who the top-performing analysts are.
Advice on Securing ER Positions: Networking is key. Cold messaging analysts on LinkedIn can be effective, especially if you personalize your messages and express genuine interest in their work. Highlight your background as a physician and experience at MBB, emphasizing how your unique perspective can add value to their biotech research team. Attending industry conferences, participating in relevant forums, and leveraging any connections from your MBB or medical network can also open doors. Additionally, consider reaching out to recruiters who specialize in finance and healthcare sectors.
Given your background as a physician and experience at MBB, you bring a unique skill set to the table that can be highly valuable in biotech ER. Emphasize your analytical skills, industry knowledge, and ability to provide deep insights into healthcare and biotech companies.
Sources: Is ER a bad goal in college with MiFID II coming?, Equity Research: Wall Street's Best Kept Secret, The Case for Elite Boutiques over any Bulge Brackets in 2022, Feel Trapped, Exit Opps From Sell-Side ER?, Where does ER go from here?
You have an MD you can just make the jump to buyside from MBB.. network with MBB alums on buyside happy to dm names
Agreed. Wouldn’t mess with ER if you have an MD and are already at MBB. It’s like doing sell side again for another 2 years - makes no sense. Also plenty of people go straight from MD —> HF.
Source I have an MD and have had friends go from residency to a HF. Also the ER market is tough.
What residency btw jw?
Agree w/ the above. Have a friend that actually skipped the MBB / sellside entirely. Went straight from finishing PHD program to having multiple pod offers (ended up going VC path instead). Easier to teach a scientist / doc to be an excel monkey than the other way around
If you can model granularly I’d skip sellside
It also depends on what motivates you. If $$, apart from PM (which very few will make it to), if you get in with a good shop with Analyst potential, this is a very lucrative role in biotech. If you think risk/reward, SS can make sense for the long haul. I wouldn’t discount it…
But buyside ofc has its own set of perks (and cons) - same with SS
Why leave MBB for SSER man… I’m a physician in SSER and the grass ain’t greener brother. Likely wouldn’t make as much. Just my two cents
If you’re looking online and see salary ranges then i wouldn’t put too much stock into them. I’ve interviewed at multiple shops where they offer me the lower end of the spectrum that they have online given I don’t have ER experience (at the time). Kinda BS given I have 4 years of med school and residency
Out of curiousity for the docs, what made you decide not to become a practicing physician?
Higher highs brother - lower lows though
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