Equity Research or Asset Management (Investment Management)

WFinance's picture
Rank: Chimp | 3

From what I understand, both roles can end up doing similar types of work when you first start. I was wondering which career is 'better', ER or Investment Management.

In terms of salary, I believe they start off equal at a BB. How does the salary progression compare later on? Can you provide actual numbers (base + bonus)?

I've read on here that ER can lead to slightly more exit opportunities (both lead to certain types of HFs. However, people in AM tend to stay in AM). Can someone elaborate on the exit opportunities and how they differ?

In terms of lifestyle, AM is closer to 9 - 5 whereas ER can be 12+ hours depending on how busy the department is.

How does the work progress as you move up the ladder?

Are there any mistakes in my assumptions?

I'd appreciate any further insight you may have.

Thanks.

Comments (26)

Aug 3, 2012
WFinance:

From what I understand, both roles can end up doing similar types of work when you first start. I was wondering which career is 'better', ER or Investment Management.

In terms of salary, I believe they start off equal at a BB. How does the salary progression compare later on? Can you provide actual numbers (base + bonus)?

I've read on here that ER can lead to slightly more exit opportunities (both lead to certain types of HFs. However, people in AM tend to stay in AM). Can someone elaborate on the exit opportunities and how they differ?

In terms of lifestyle, AM is closer to 9 - 5 whereas ER can be 12+ hours depending on how busy the department is.

How does the work progress as you move up the ladder?

Are there any mistakes in my assumptions?

I'd appreciate any further insight you may have.

Thanks.

What do you mean by asset mgt? That is an industry. It's like saying you work in health care. You could be cleaning bed pans or be a neurosurgeon. Need more info in order to help. Hedge funds are a part of the Asset Management industry, for instance.

Aug 3, 2012
SirPoopsaLot:

What do you mean by asset mgt? That is an industry. It's like saying you work in health care. You could be cleaning bed pans or be a neurosurgeon. Need more info in order to help. Hedge funds are a part of the Asset Management industry, for instance.

I mentioned Investment Management in the title and my post. I'd like to find out more about IM specifically at a BB.

Flake:

, I guess I was wrongly under the impression that it approximated 9 - 5. I just rechecked some of the other threads here and I guess the hours can be quite rough but apparently they're quite stable. What would you say the hours are like.

@allinthegame - So why would you say ER is better? Is the work not quite similar in beginning?

Aug 3, 2012
WFinance:
SirPoopsaLot:

What do you mean by asset mgt? That is an industry. It's like saying you work in health care. You could be cleaning bed pans or be a neurosurgeon. Need more info in order to help. Hedge funds are a part of the Asset Management industry, for instance.

I mentioned Investment Management in the title and my post. I'd like to find out more about IM specifically at a BB.

Flake:

, I guess I was wrongly under the impression that it approximated 9 - 5. I just rechecked some of the other threads here and I guess the hours can be quite rough but apparently they're quite stable. What would you say the hours are like.

@allinthegame - So why would you say ER is better? Is the work not quite similar in beginning?

You're not understanding my question: what will you be doing there? Research? portfolio management? Operations? Sales?

Would it be for mutual funds, hedge funds, separate accounts? What asset class? That's what I'm getting at.

    • 1
Aug 3, 2012

Who the fuck told you AM is 9-5?

    • 1
Aug 3, 2012

ER. unless AM is at PIMCO/BlackRock megafund and your are in FICC

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Aug 3, 2012

why FICC?

Aug 3, 2012
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Best Response
Aug 3, 2012

Most BB AM groups are pretty lackluster, no offense to anyone who works in one. Top PMs generally do not work there (exceptions exist). They are often psuedo-index funds.

However, AM shops like Fido, BlackRock, etc. provide the rare opportunity to do buyside research from undergrad. They are very selective. Although mutual funds do not exactly produce world beating performance, the PMs are generally very smart (they just know it is better to stick to their benchmark than swing for the fences).

Regarding ER, it is a different ballgame. Outside of a few independents (Sanford Bernstein), you will be working for a bank. The modeling might be similar, but the long term career is totally different. ER is also very selective; the teams are small and turnover is relatively low.

I would say you should figure out what you want to do long term, then shoot for that. But, if your dream is AM, ER makes a good fall back (and vice versa).

    • 2
Aug 3, 2012
West Coast rainmaker:

Most BB AM groups are pretty lackluster, no offense to anyone who works in one. Top PMs generally do not work there (exceptions exist). They are often psuedo-index funds.

However, AM shops like Fido, BlackRock, etc. provide the rare opportunity to do buyside research from undergrad.

OP...listen to this.

Aug 9, 2012
SirTradesaLot:
West Coast rainmaker:

Most BB AM groups are pretty lackluster, no offense to anyone who works in one. Top PMs generally do not work there (exceptions exist). They are often psuedo-index funds.

However, AM shops like Fido, BlackRock, etc. provide the rare opportunity to do buyside research from undergrad.

OP...listen to this.

By Fido , do you mean Fidelity?

Aug 3, 2012

Lol ER as a fall back.

Aug 3, 2012
bearing:

Lol ER as a fall back.

I mean it goes both ways. It is just more places to apply. I would recommend applying to AM firms as a fall-back for ER too...in this job market, it can't hurt.

Sep 29, 2015

good question

Sep 29, 2015

So it sounds like you're trying to compare working in Equity Research on the Sell-Side vs. the Buy-Side. The difference is that on the sell side you create reports with recommendations on a couple of stocks in your designated industry or sector and then sell those reports or give them to others in your bank so THEY can make investments. This differs in the buy side where you're the one making the decisions based of your own research as well as some the reports created by the sell side.

Other differences are that hours are better on the buy side but you're also much more responsible because you're deciding to make the investment whereas, on the sell side, it doesn't matter as much if a stock you're covering tanks. Also sell side has to have much better writing skills because of the reports they write.

Sep 29, 2015

Agree with most of what undervalued wrote. On the sell-side, your job is get buy-side analysts interested in your work. More interest in your work = more commissions / soft dollars = better review for you. Industry knowledge and contacts are often as important as actually being right about an investment call.

On the buy side, your performance is the main driver of your long-term compensation.

Also sell side has to have much better writing skills because of the reports they write

Not true in my opinion. The vast majority of sell-side reports are "flash notes" / quick updates that almost anybody could write. In fact, an increasing amount of SS research is being outsourced for this very reason.

Sep 29, 2015

bump

Sep 29, 2015

Do you know what industry/sector group you'd be with for the ER position? Anymore color on the firms you have offers from would help, too.

Sep 29, 2015
Comment
Sep 29, 2015