ER from S&T

Hi, I'm seeking some advice regarding a potential switch to Equity Research from S&T. I just completed a S&T internship and have an offer to return full-time. However, during the internship, I realized that my interests align more with micro fundamental research on equities rather than the macro focus of markets.

I’m trying to figure out the best next steps to make the switch to ER and would appreciate any insights or advice from those who have made a similar transition or are familiar with the industry.

Thanks in advance!

4 Comments
 

This is the correct approach. If still in time I would ping a senior analyst for a coffee chat, use it to learn more about the day to day and their sector, tell him you have a return offer but would like to try your hand at ER instead. He will flag to the appropriate desks that are in need of an A1 then go from there. You can also very easily switch internally post your S&T start date. Very common move, just flag it well ahead of time to research and be patient.

 

Based on the most helpful WSO content, here are some insights and advice for transitioning from Sales & Trading (S&T) to Equity Research (ER):

  1. Understand the Differences:

    • S&T: Focuses on the macro aspects of markets, trading strategies, and client interactions.
    • ER: Involves micro fundamental research, stock picking, financial modeling, and detailed analysis of companies.
  2. Develop a Strong Story:

    • Clearly articulate why you want to move from S&T to ER. Highlight your interest in micro fundamental research and how your skills from S&T can be beneficial in ER.
  3. Enhance Technical Skills:

    • Financial Modeling: Consider taking a self-study financial modeling course (e.g., BIWS) to strengthen your technical skills.
    • Certifications: Pursuing a CFA can also be beneficial as it is highly regarded in ER.
  4. Networking:

    • Leverage your network, especially any contacts you have in ER. Informational interviews can provide valuable insights and potentially lead to job opportunities.
  5. Tailor Your Resume:

    • Highlight any relevant experience from your S&T internship that aligns with ER, such as any research or analysis you conducted.
  6. Prepare for Interviews:

    • Be ready to answer behavioral questions, especially those that address why you are making the switch from S&T to ER.
    • Practice technical questions and be prepared to discuss your understanding of financial statements, valuation techniques, and industry-specific knowledge.
  7. Consider Lateral Moves:

    • If possible, look for internal opportunities within your current firm to move into an ER role. This can sometimes be easier than switching firms entirely.
  8. Stay Informed:

    • Keep up with industry trends and news. Reading reports and publications related to the sectors you are interested in can help you stay informed and demonstrate your commitment to ER.

By following these steps, you can better position yourself for a successful transition from S&T to ER. Good luck!

Sources: 2nd yr Biotech Equity Research looking for next steps......, Feel Trapped, Exit Opps From Sell-Side ER?, Future of Equity Research - 12+ Months into MIFID II, Q&A: Equity Research Associate at a Boutique Firm, Navigating The Floor: A S&T Analyst's Guide

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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