PWM to Equity Research

Hello WSO community, long time lurker but first time poster. I am looking to move into equity research from my current role at a large private bank. A little about myself: went to a non-target undergrad, low GPA, and spent a few years hopping round back office jobs before I landed my current position. I been with this company for almost 2 years now, and I am considered in a generalist track to become a PM. However, I would like to move into equity research for my next jump, as I found out I am not that interested in sourcing new business and speaking with clients. Great part about my position now is that when I am done with my work, I have the freedom to do any research as I want.

If I want to enter equity research, would crafting my experience towards building financial models, reading earning reports and 10Ks, and pitching stocks to my manager be something beneficial to position myself into an equity research role? I feel a bit under trained to be an equity analyst for the time being. Since PWM is considered the “buy side”, would going back to the sell side for equity research training be beneficial, or should I try and aim directly towards buy side shops if that is my end goal?

 
Best Response

@"Flake" should have some good thoughts on this.

FD: I think you should say siyonara to ER if you don't enjoy speaking to clients, period.

now, assuming that what you mean is you don't want to be a salesperson (which is a stupid prejudice, by the way), then I would say do some work to network with your firm's ER guys. leverage the internal corporate directory.

all of this assumes your chops are up to snuff. I'm a PM in PWM, and I'll tell you bluntly that I don't build 3 statement models. not out of lack of competence, but out of lack of time. ideally, I'd say 50% of my job is bizdev and client service and 50% is PM duties, but in reality it's more like 70-80% non PM duties (which is why I love having a co-manager!). if you are doing deep level analytical work, good for you. but most people in PWM just don't have the time.

unless Flake says differently, you could possibly send in mock ER reports to your analysts (not companies they follow but maybe something in their industry) so they can see the quality of work and also talk to your branch manager about this. in PWM, branch managers aim to keep everyone happy, and the worst way to go about this is to do it sneakily. check to see if your firm has a policy on internal job transfers outside of your division, and then possibly talk to your manager.

also, know that both buy and sell side analysts for the most part do much more in depth work on stocks that you currently do and more than I ever hope to do so long as I'm in PWM. they know this, and that's why a prejudice exists against people in PWM who say they are research analysts. you will have to impress them with your quality of work to get in the door, but since you're already at the firm, you have tons of resources as far as names phone numbers and emails that others don't, don't be afraid to use them.

if I were you however, I'd try to get to the root of why you don't want to speak to clients. if it's out of desire to not be accountable for bringing in business, that's fine, but you can't expect to advance in this world if you don't like speaking to people that are paying your firm in order for you to have a job, that's asinine (IP may disagree with me, but whatever).

beyond that, consider a MBA if your technicals are weak. unfortunately PWM is not and has never been a good launchpad for careers. it's more of a terminal career so you need a serious rebranding, which may only be had via MBA. best of luck.

 

Thanks for the response. I guess what I mean is that I dislike speaking too much to clients about topics that aren't heavily investment related, as I listen to some of the PMs in my office spend so much time talking to them about their families, hobbies, etc... I am also not too interested in constantly having to meet sales goals and source new AUM, and would much rather spend my time sourcing new ideas instead.

 

Personal studies and some coursework with C++ is vague and stated too casually Enjoys snowboarding and outdoor activities - lacks passion, what activities? Add something more about your interests away from work. Volunteer for something this summer? Fill the page with every line (where possible) Good luck!

CPA/investor/bballer
 

Yes, I knew of someone doing that in the past, who ended up successfully moving from PWM to ER to a top HF after a few years. However, in this environment it seems any type of lateral move is pretty tough (even prob moving from ER to PWM...)

 

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