Am I fit for ER?

So I basically love researching companies, making 3 statement models and In general like investing in the public markets.

HOWEVER, I am not a great salesman, have a heavy accent and am definitely not a gifted public speaker.

I feel like I want to do research and I want to invest but I get the feeling that in a job function like ER, you should also need to have a very persuausive tone and speaking style. This is where I get a little confused and wonder if there is something that suits my personality and passion more than ER.

I look forward to your advice and any suggestions.

 

Assuming you start as an associate, it'd take you time to ramp up in terms of your analyst's coverage universe and getting all of your licenses. In that time, depending on your specific analyst, you can gain experience in not only working on models, but also perhaps in writing notes as well as speaking to internal customers (i.e. sales, traders, etc.). Once you gain more knowledge within your specific sector, gain writing experience (which will help you articulate your theses more concisely), and have your licenses (which you need in order to legally communicate with external clients), you will then be able to transition. If you're able to concisely state your opinion and back it up with effective qualitative & quantitative data, I wouldn't worry about your accent being too much of an impediment.

 

From what I understand, ER is a marketing role. Depending on your analyst's approach, you may be spending a large proportion of your time on the phone to clients. If you don't feel you are suited to this, it may be best to consider other options.

Why not try and start on the buyside? You'll be analysing companies and actually investing.

That said, there's no harm in trying to work on your weaknesses and as I'm sure you're aware, communication skills are important in any role.

 

There are a handful of REALLY GOOD ER threads floating around the forums that go over your concerns, give the search bar a go. I can't remember the name of the thread/author, but there was a post breakdown of the different types of ER Analysts you can assume the role of given your strengths.

 

I remember seeing that thread too and vaguely, I remember it said that some analysts are more focused on producing detailed research vs. putting on roadshows vs. constantly communicating with clients. But at the end of the day, you don't really have much choice in the analyst you work for and also, the role of ER is to provide stock recommendations so I don't think you can avoid the client facing aspect.

 

I have a colleague who has an accent too, but his analysis is solid and he's not afraid to try to communicate his ideas verbally whenever he needs to.

I think confidence matters with regards to your talking skills. If you want to do ER, just dare to step out of your comfort zone and practice what you're not good at. Then you can enjoy the analysis part of the job too.

At the end of the day, if what you write on paper is good it counts for a lot already.

 
Best Response

Couple observations. First, many people coming into ER suck at constructing concise pitches for clients, salespeople, and voicemail boxes. You can take it as an opportunity to learn and improve, or you can ignore it and be angry at the world for ignoring your message. I suggest the former considering how valuable a skill communication and public speaking is, regardless of your industry or career.

Second, I find it easy to speak persuasively about a stock that I researched the shit out of and have strong conviction in. I would be surprised if you enjoyed researching stocks, but didn't enjoy sharing your conclusion.

Last, the funny thing about accents is that the longer you hear it used, the easier it gets to interpret. You will cover a sector, call on, and speak to many of the same investors on a regular basis. They'll pick it up.

 

Think I wrote the post you mentioned on types of analysts. I have pasted it below.

There are 3 types of top ranked analysts:

(1) Those who are all over the detail and provide valuable insights to clients which generate alpha. (2) Those who are awesome at the sales aspect, client entertainment, and are very visible. (3) Those who are providing the best corporate access / putting on the best conferences in the sector (which is valued by clients despite new regulatory changes to what clients are allowed to pay for- i.e. not corporate access, but purely research. Informally, clients still pay for and value corporate access, even if not explicitly).

If you want to move to the buyside, the type of analyst you want to work under is type (1)- because then you will be picking up his knowledge and skills that will leave you in good stead when you move.

Therefore my advice is this (adding to what was said in the above post). Know what the analyst's advantages and disadvantages are. He may be top ranked, and this will always give you more visibility to the buy side all things being equal. But what is the reason for him being top ranked- is he all over the detail, and therefore are you going to pick up the tangible skills working for him that will serve you well when you move across.

One thing I would also add as an aside point to the above post, is that yes associates or people who have 2-5 years of experience will be the typical profile to leave to the buy side. However, in the last 2 years there is also a definite trend of Director-level hires at top hedge funds- this is contrary to the tradition, as once you are at this level ER is a very cushy job. However, they can be seeking a change and/or challenge - plus the potential upside can be considerably higher, with this trend likely to continue given the regulatory changes in terms of what clients are allowed to pay for. From the fund's point of view, a Director or MD-level hire can also have the advantage of them being MUCH better connected than an Associate with 7 years' less experience. Who you know is very important in this business, and having the right contracts can be a very valid way to generate alpha.

 

not in ER, but regardless of where you go, you should polish your presentation skills. there are plenty of spreadsheet jockeys that can analyze a company and then communicate that, you won't ever move up the ladder unless you can improve your selling skills. and just because you're not in the "sales" part doesn't mean you're not selling, every job is selling. you have to learn how to sell investors on your stock idea, you have to sell your VP on why you're right for a promotion/role, and if you ever move firms, you have to sell that firm on why they need you.

agree with whoever said this, do toastmasters and practice your selling, negotiation, and persuasion skills, they will serve you well. accent doesn't matter, if you speak slowly and are confident, the words will flow. if you want to get rid of your accent or minimize it, you can do so with practice. I have several Indian colleagues in my office, all expats, and you can very clearly understand them, but I'm sure they weren't born that way.

 

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