What should I study for fundamental or l/s analyst positions out of grad

To prepare for fundamental or long/short (L/S) equity analyst positions, here’s what you should focus on based on the most helpful WSO content:

Key Skills to Develop

1. Accounting and Financial Statement Analysis:

   • These are critical for understanding company fundamentals. Learn how to analyze balance sheets, income statements, and cash flow statements.
   • Consider taking accounting courses or self-studying with resources like the CFA curriculum.

2. Financial Modeling:

   • Proficiency in building and updating financial models is essential. This includes valuation techniques like DCF, comparable company analysis, and precedent transactions.
   • Enroll in financial modeling courses or workshops to gain hands-on experience.

3. Qualitative Analysis:

   • Beyond numbers, you’ll need to assess management teams, industry trends, and competitive dynamics. This involves developing strong research and critical thinking skills.

4. Behavioral and Decision-Making Skills:

   • As you progress, gut instincts and the ability to detect nuances in management behavior become important. Practice analyzing case studies or management interviews.

Academic Path at Cornell

• Public Policy Major:

  • This is a solid foundation for understanding macroeconomic and regulatory factors that can impact markets and industries.

• Minor Options:

  • Applied Economics (Dyson): This would complement your major by providing a strong grounding in microeconomics, finance, and market analysis—directly relevant to hedge fund roles.
  • Operations Research (Engineering): While more quantitative, this could be valuable if you want to develop data-driven decision-making skills or explore quantitative strategies.

Additional Recommendations

1. Certifications:

   • Start exploring the CFA program. Even Level 1 can boost your credibility and knowledge base.

2. Networking:

   • Begin building relationships early. Attend finance-related events, join investment clubs, and connect with alumni in hedge funds or equity research.

3. Internships:

   • Target internships in equity research, asset management, or related fields to gain practical experience.

4. Technical Skills:

   • Learn Excel, SQL, and possibly Python. These are increasingly important in finance roles.

5. Stay Updated:

   • Follow market news and trends. Platforms like Bloomberg, WSJ, and even WSO forums can help you stay informed.

By combining your public policy major with a minor in applied economics or operations research, and focusing on the skills above, you’ll position yourself well for fundamental or L/S equity analyst roles.

Sources: Finishing 1st Year as HF Analyst - Ask Anything, 5 things I wish I had known when I was a business undergrad..., Finance Career Path & List, Majoring in Wall Street?, A Guide for Switching From Commercial Banking to Investment Banking