Buy Side Research vs. Investment Management

Just to frame the discussion here, let's just say that we are talking about a post-MBA position and the subject also has his/her CFA. At the junior level, what are the differences in the day to day roles/responsibilities? How do successful employees progress in each position over the first few years and how do their responsibilities change as they do? Obviously the types of firms in each case create variables-- examples would be great. All knowledgeable feedback is welcome.

 
Best Response

I'm going to assume you mean the difference between a research analyst in a centralized research department of a large asset manager compared to a junior PM at the same firm.

Something like 80% of the people in the research department will be gunning for a PM spot and very few will actually be able to do so. The job ends up looking like sell side research, in that you specialize in an industry (although usually you cover a lot more names and there's obviously not the marketing component). Because you're so specialized, you don't know as much about other industries and most importantly, you don't have money on the line, so you never learn how to properly size positions. That being said, it's a relatively cushy job as long as you are an expert in your sector. If your goal is to be a PM, take the junior PM role.

Although every point I made is moot if I misunderstood the roles you're referring to.

 

AM=buyside. Therefore, you could be a buyside analyst at an AM (i.e. buyside), so I think you need to clarify or rethink your question.

People demand freedom of speech as a compensation for freedom of thought which they seldom use.
 

Thanks vagabond. What I meant was: "Do you mean the difference between being a research analyst (idea generation/coverage responsibility) vs. a portfolio management analyst (asset allocation, performance attribution etc?)." I'd also be interested in knowing more about your other suggestion: how working in AM at a BB (ie GSAM) differs from working for a strictly buyside asset manager.

It sounds like being a buyside analyst at a large enough asset management firm with a coverage responsibility is much like being a sell side analyst, minus the marketing. The biggest difference appears to be the idea that, since the buyside analyst is in an "idea generation" role (in addition to coverage), looking for actual ideas and not just putting out information and placing ratings on stocks, that it makes the role a little more interesting. Can anyone elaborate? Agree or disagree?

Can anyone describe in greater detail the role of a junior level employee working directly with a PM?

Thanks

 

Sed dolor aut dolorem quia voluptas exercitationem. Quis et architecto dolorem provident eligendi. Et inventore nobis expedita vel consequuntur. Quidem qui omnis quisquam repudiandae sed.

Iusto reiciendis consequatur doloremque consequatur laboriosam dolorem architecto. Voluptatum cumque pariatur voluptas hic provident unde dolorem voluptatem. Quibusdam rerum pariatur unde.

Sapiente illum iste voluptatem reiciendis laudantium doloremque. Occaecati repudiandae laudantium illum ut sequi tenetur. Id aut dicta rem sit minus nostrum et. Similique est expedita rerum et autem voluptas. Sit culpa dicta accusantium consequatur omnis doloribus magnam voluptatum.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”