Analysts - let me get this straight

I don't work in IB/PE or finance at all for that matter; I am actually a medical student. But I do read this forum a lot as I have been offered a HF analyst job at a healthcare-focused hedge fund.

I see so many posts here about "slides/deck"-making from analysts, to the point where it seems that's essentially all they do.

I thought at least a part of being an analyst, even in IB, would be to do a little bit of equity research, bond research, etc. Basically I assumed an "analyst" would at least help in analyzing companies/financial instruments/investment opportunities for clients. 

You're telling me that these banks pay you $100k a year to re-arrange powerpoint slides? This seems like something anyone that is a high school grad could do.

 
Controversial

They pay us to make the slide, and then yes, lots of rearranging after. The equity research people do the equity research. You can't be publishing equity research on the names you are working on because there is a private/public split for MNPI purposes. And yes, we are all high school grads. The problem with people who don't go to college after high school is they don't know how to not make dumb mistakes. 

 

maestro_

They pay us to make the slide, and then yes, lots of rearranging after. The equity research people do the equity research. You can't be publishing equity research on the names you are working on because there is a private/public split for MNPI purposes. And yes, we are all high school grads. The problem with people who don't go to college after high school is they don't know how to not make dumb mistakes. 

Your going to college does not change your probability of dumb mistakes lol

 

Oh boy. Where do we begin? 

IB stands for Investment Banking, but it has nothing to do with recommending investments in a fund or security research for that matter. You basically work on transactions between businesses or equity/bond issuances depending on your specific role. This is a very common misconception for people outside of the industry. 

Hedge Fund Analysts is where you would be involved in security research and as you put it, "analyzing companies/financial instruments/investment opportunities for clients". 

These are two different roles entirely. However, yes a lot of IB analysts are spending time on slides at first until they get promoted and start to have a little more responsibility. 

 

Where do you think hundred-page decks come from? Every single thing you listed (research, analysis, etc.) is done by analysts so that they can eventually put it in a pretty, digestible format on a slide. Yes, anyone with average intelligence can learn the job, but we aren't just rearranging slides for 100 hours a week lol...

 

He's running low on his ego so he came to make this post as a way to enhance it. OP thinks that all the analyses and content in the slides magically appear for investment bankers to "arrange"

 

The reality is, although it is mostly tasks that anyone could do, a few things make it so that you need to have proper background and training:

- The ability to digest information very quickly

-The ability to remain productive while sleep deprived 

-Multitasking on various high pressure work streams

- Some things are actually technical

-You need to understand the broader picture to be good

-You need to know more than necessary in order to not look like a fool externally when things get complicated 

-To a lesser extent than consulting, you need to have some sort of prestigious background to justify you your pay and your capacity to advise very senior people on high impact deals 

 

Yeah, like going to Harvard or MIT. Shows that even if you’re vent junior you have some kind of legitimacy to advise. Also justifies the high fees. But this is especially true for consulting, but would think in banking too, in case people look you up (some CEOs will add you on LinkedIn), you need to have a decent profile

 

Different IB teams give analysts different responsibilities. In banks IB just means you work under the Investment Bank so you can be a Risk Analyst under the Investment Bank or a an actual Investment Bank Analyst and get paid the same base but different bonus. Investment Bank means you work with Investment Bank clients as in clients with a certain amount of Revenue. I believe the cut off is $3Bn or more per year. There are roles that exist that to my knowledge while they are analyst/first year roles, are highly technical in nature and do not solely involve PowerPoint.

 

Yes to a limited degree but combine a tight deadline, multiple transactions, several different workstreams beyond what you mentioned, and literally a thousand other variables for the day and you'll find very few people can actually handle the work. But yes it is not always very scintillating to the degree medicine is. 

 

“All you do is rearrange logos”

This nonsense has started up the past few years a lot. From my experience there is quite a bit of technical modeling and thought - maybe that has just been my experience. Yes if you’re a shit analyst they are only going to give you sponsor pitch books with profiles.

 

All you’ve done is reference stereotypes and memes. People joke about aligning logos because it’s a funny task to have, but there’s so much more to being an analyst than putting together a deck. If that was the case, why don’t banks just hire people in graphical design?

As a holy HF-analyst (to be), you should try learning how to google something before shitting on a job that people would kill to have.

 

>be med school nerd

>go on finance forum

>>so you guys just change slides for $150k a year?? haha idiots!

>proceeds to take out $200k for me(me)d school

>do 4 years of advanced Chegg for anatomy and physiology

>graduate at 26 (at the earliest)

>another 3/4 years of generalist residency while getting paid like high school teacher

>another 3/4 years of sub-specialty to not get paid while still having debt

>be 34

>>finally! now I can start 'saving lives'

>proceeds to prescribe percocets and oxycontin to minorities under Medicare for $200k a year

the absolute state

 

Yes but he'll be a doctor and you'll just be some banker ;)

Sorry it's just funny. Doctors are always tier 1 in society no matter how much debt they go into or how shit their lives are because we're always reminded of why they're doctors.

 

probably, but he'll make less money and this is America, where money is the only thing that matters

 

Depends on the deal flow, workload, resource situation, and a few other variables.

But 85-15 split for analyst 1 sounds about right. You'll be supervised by a senior analyst or a junior associate.

The split changes widely as you move to analyst 2. You'll begin to work independently on models with some oversight from your associate/VP. This path can be further accelerated if you have a conversation with your associate (or even staffer) that you want to take ownership of the model. You'll be given adequate resources, but the learning curve will be steep.

Also, non-modeling work is not just editing slides. Analysts also put together new-creates that take some serious amount of thought and research. It all depends on you. If you want to take on more superior quality work, then let your associate/VP know. I'm sure they'll appreciate you stepping up as it eases up their workload.

 

You are heading in the right direction,

JPM and BoAML do pay you $100k a year to create powerpoint slides that will most likely be used for small companies we're trying to buy or sell for clients. But mostly, these banks are just paying you to sit in the BO and work your'e  ANLST ass off 8 days a week 25 hours a day. 

Why would anyone want to do this chump work for 5 years straight?

Because you are getting paid over $100k a year to do these 5 years of chump work. Because, it is the joy of a nice crisp bonus showing up on the front door in your Merrill account that keeps you chugging. To claw your way up the cooperate ladder out of high level presi deals 8 days a week 25 hours a day. 

 

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