Memos and Reports

Based on the most helpful WSO content, here's what you need to know:

Sell-Side Equity Research:

• Primary Tasks:
  • Writing detailed reports and investment recommendations.
  • Creating charts and visual aids.
  • Marketing ideas and constantly looking for commercial opportunities.
  • Organizing events and connecting with people, such as conferences and meetings with management teams and investors.
  • Publishing various types of notes during earnings season, including previews, earnings flashes, and comprehensive reviews.

Buy-Side Equity Research (Hedge Funds or Asset Management):

• Primary Tasks:
  • Analyzing companies independently and through sell-side research.
  • Generating actionable investment ideas and communicating them to Portfolio Managers.
  • Focusing on genuine research without the commercial aspect.
  • Spending significant time on deep research, reading public filings, and updating models.
  • Less emphasis on writing extensive reports compared to the sell-side.
  • Job security is more closely tied to the performance of your research.

Key Differences:

• Sell-Side:

  • Heavy emphasis on report writing and marketing.
  • More commercial and client-focused.
  • Involves organizing events and maintaining relationships.
  • Requires a "sales" skillset.

• Buy-Side:

  • Focuses on generating investment ideas and deep research.
  • Less emphasis on writing reports.
  • More intellectually rewarding due to the genuine research process.
  • Performance-driven with a shorter window to underperform.

If you're considering a move from sell-side to buy-side, be prepared for a shift from a commercial, client-focused environment to one that prioritizes deep, independent research and idea generation.

Sources: Choosing Between Buy Side vs Sell Side in Equity Research?, https://www.wallstreetoasis.com/forum/equity-research/career-ladder-equity-research-vs-investment-banking-a-definitive-guide-part-3?customgpt=1, Q&A: Buy-Side Analyst, Career Ladder: Equity Research vs. Investment Banking - (A Definitive Guide, Part 3), What would you like to know about Equity Sales / Research?