Equity Research Value Investing

I'm currently a student in college and am extremely interested in equity research, but also have a fondness for value investing. I've read and continue to read many books on the subject. For most Equity Research positions on the buy-side, would taking this mindset into an interview be a hindrance? It seems like most equity research aims to put a target price in the near-term, without much regard to longer term holding, but I could be completely wrong on this. I don't want to plan a lot of theses around this mindset if most firms don't subscribe to it, but at the same time I would be very interested to learn which this would appeal to. Thanks!

 

Of course it doesn't hurt. Most firms will say they subscribe to a value philosophy anyway, even if they're not 'deep value' 5+ year holding period one-idea-per-year shops. Everyone is trying to buy/sell mis-priced assets, there's really not another way to make money in equity. But really, the best theses come from understanding the business/industry and making calls based on what fundamentals will look like over time, and I think that's the real insight from value investing anyway. I would suggest trying to shorten your time horizon if you're interviewing at more hot-money shops. Catalysts are key, but you still need an understanding of the competitive position of your company, the industry structure, etc.

 

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