equity research BB
I am a second year student in a london target university studying econ and I was examining the internship possibilities.
I am interested in hedge funds but I know how difficult it is to get a FT out of undergrad. I might have the chance to do an internship in a credit Hedge fund (think 3-6B AUM) though I am not sure if this can lead to a FT position. For this reason I was wondering if trying to get an ER summer internship in a BB is a better move as it will allow me to have a better brand in my cv and maybe enjoy better exit opp.
I am planning to stay in London and I am still unsure about which HF strategy I really would like to specialise in.
Bump
The best path is almost always to start in IB as it gives you the broadest range of exit opportunities. For example, if you're coming from sell-side ER then you're pretty much limited to long/short HF's. It would be tough, although not impossible, to break into a merger arb or distressed debt/credit fund or a special situations fund from sell side ER. It's not impossible but just a lot tougher than it is from IB.
Why don't you ask the credit fund if there is any chance for the summer stint to turn into a FT position? If you are not sure you want to work in credit I would take the ER position in a BB as there is the possibility to lateral into an IB job and the brand will look good for FT recruiting.
IB does not appeal to me to be honest. I am not interested in PE/VC/banking so I do not see why I would spend 80 hours a week for 2 or 3 years doing something I don't like. I know that IB in a BB can lead to a good value/fundamental HF but I would like to avoid this path. I am not 100% sure about credit investing but I have to say that HY/distressed appeal to me.
Is it really much better to do IB for credit or is ER/Credit research/AM still a viable option if I do not manage to get the FT?
To people who happen to work in a credit fund, can you please comment on the amount of macroeconomic and ''big picture'' analyzes ? Are top-down analyzes common ? I know that in general credit funds go deep into companies structure but I want to know to what extent do politics influence the day to day operations in a credit fund and how "easy" (at least compared to other strategies) is it to generate alpha in a bull market.
Take the HF without a second thought. 3-6 Bn AUM means that it is at least an established institutional firm. It is a much better opportunity than BB ER
I am very tempted to take the internship, especially to see what is a Hedge fund environment really like. My only hesitation is that I am more tempted by macro discretionary HF than ''corporate focused" HF. I fear that by doing this internship it will limit my prospects to join a global macro fund after graduation as I won't have any training in rates, FX,commodities...
(another reason, perhaps more practical, is that I am an econ not finance major and I am more interested in macroeconomics than corporate finance to be honest, even though I find credit somewhat interesting)
bump
Largest equity research BB (Originally Posted: 03/05/2008)
Anyone know which is the largest equity research firm out there ( by # of analysts, or # of coverage companies), or any other yardstick ?
im not sure why ER department size would matter, but the big guys (bear, Merrill, Citi, lehman, JPM etc.) are all pretty similar with around 70 analysts covering 1000+ companies in the us. that's about 15 companies per analyst on average but that multiple is going up as banks are trying to do more with the same number of people.
Citi, UBS and ML are the largest by headcount and number of companies, but from the perspective of any potential employee (such as yourself), this figure is really quite irrelevant
That's funny, they should keep these files private, don't you think? I think it's the responsibility of the IT guys.
Anyways, didn't you mention in previous posts that you are attending an ivy league?
The best yardstick is accuracy, and I believe Oppenheimer & Co. is tops by that measure.
i don't agree. most buy-siders don't care about EPS estimates as they come up with their own models, or use sell-side models as a basis for their own. if you ask people buy-siders as well as sell-siders as to what buy-siders care about the most, almost none of them will say "EPS estimates" and most of them will talk about access to management, proprietary insights, etc. even so, the quality of analysts can span a wide range from bank to bank, simply because each analyst essentially operates as an independent franchise, and the way he runs his/her team is almost always more of a determinant in your life than whose roof you work under.
that being said, if you're looking to break into research, you're almost invariably better off starting at a big bank just for credibility and resume reasons. but what you do at a bank is 80% or more dictated by who your immediate boss is.
Chances for BB Equity Research? (Originally Posted: 05/27/2016)
I'm a first year economics student at a semi-target UK university, for the sake of privacy I'll say that it is one of Bristol/Bath/Nottingham/KCL
what would my chances be for landing a summer internship within equity research? alternatively, what about M&A / Equity Sales?
According to your other thread 2 weeks ago, you were thinking of applying to universities and now you're suddenly a first year student? That was fast!
Your chances are better if you work on improving yourself and accomplishing things instead of making different variants of the same thread on WSO trying to fish for reassurance or encouragement about what university you go to.
FT BB ER--need career advice please! (Originally Posted: 05/24/2010)
I am new to the forum and posted something similar last week. After reading some more posts , I wanted to circle back and ask for some big picture input.
As I said I am starting in FT ER this summer at a top BB. When I went into the interview process I was hoping for IBD (to move on to PE), but for whatever reason I landed in ER. I'm not complaining given how tight the job market is, and that I think I will have a great experience in ER. It seems that I'll have some exit opps to a hedge fund, but not the same as IBD.
Now here's my question: Am I totally screwed? Basically I want to have the same options as bankers for PE/HFs. I realize this will require switching divisions though. Does this make sense/is it feasible? I would do this after two years (to burn fewer bridges), and would hopefully enter as a 2nd year IBD analyst. Is it worth the two years? Will headhunters take me seriously? Is it possible they would view the ER experience valuably?
Again, does this make sense/will I have exit opps? To be candid, if I did this, it would be to have a shot at a mega fund. Otherwise it's a waste of time since I'm confident I could get into a solid HF, or even PE (see numi's post), from ER. Also, bear in mind I do have a very strong network in PE (even at higher tier funds), and I'm confident I could get interviews at some (maybe not TPG, KKR, etc).
Please let me know what you think. Don't pull any punches either (although please keep the criticism constructive).
two follow up points
1) BS aside, I am assuming that there would be a valuable experience to gained by working in IBD.
2) Please no college kids making comments. Just people already working. Thanks.
I'm curious of this as well. Further, given the options, how would you rank ER, ECM, and DCM for PE? For HF? I know DCM and ECM are technically considered IBD, but many consider them not to be.
how about you stop looking at how acronyms are ranked in a forum and start to look what the positions actually mean. Combine that with the model of the fund you want to work for and the answer should be quite easy.
Thanks, buddy, but I'm fully aware of what Equity Research, Debt Capital Markets, and Equity Capital Markets entails. What I'm looking for is advice from someone who actually has experience as to how the experiences rank, all else equal, for placement into Private Equity and/or Hedge Funds, broadly.
and there is the problem. PE and HF, broadly. It will depend on what type of fund (esp. on the hf side) Why would you care how the ratio is of people from each category moving to the buyside? When somebody would say DCM sends the most people to the buyside, would you then go into DCM despite the fact that it will be most likely in distressed shops only which might not be what ur interested in?
sorry im just leaving college so I might be the wrong person I just think ur question is stupid as hell
I do not mean PE + HF, broadly, I mean PE, broadly, and HF, broadly, as in two different categories -- how the experiences would stack up for each.
I know it would depend on what type of fund, but some funds have got to be more common than others. I'm wondering if one particular experience would be relevant to the most types of funds.
To stack the probabilities in my favor, if I am indifferent between two different jobs.
That's the type of information for which I'm looking, worded: "Well, DCM places the best into distressed shops, if that's something in which you'd be interested." You know, a considerate and helpful response.
Yea... "I'm looking for is advice from someone who actually has experience."
I just think your spelling and grammar are stupid as hell.
i've heard ER is better than IB for hedge funds, is this true?
WOW you guys sure have a boner for those bankers. They must of sold you a pretty nice bill of goods for you to embrace it so wholeheartedly. Do you think that ER is looked down upon? Jesus Christ.
The problem with your original post and, in general, your question is that its stupid. Shows a complete lack of understanding of the industry. Personally, I can't believe you got hired which such limited knowledge.
Moreover, its childish for you to want to "rank" positions. If you want to work in a transaction driven LBO PE fund, I bet IBD has an advantage. But then there are difference on whether or not you're in an industry group or a product group.
If you want to work in a deep value long/short fund, I'm willing to bet ER has an advantage. But what if you were just a excel monkey and never learned how to really research and understand industry dynamics?
My point is think about experience, not job descriptions.
If you just stopped to think about what you're asking you'd save both of us some time and grief.
I think IBD is best for VC/PE
ER/FI/S&T is more for HF's
The only case where IBD is better for a HF, is M&A
Thats how I understand it.. Right?
Seriously how the f did you land the ER offer?
Start focusing on doing a good job and the opportunities will follow. If you show that you're intellectually curious, analytically focused, and can communicate your ideas in an easily digestible manner you'll build a network that will vouch for you no matter what you decide to do. Too many people here are so focused on the exit opps that it becomes tunnel vision. The more you talk to senior guys the more you realize the range of paths that lead to success.
So the answer to your overly dramatic "am I totally screwed?" is: You're only as screwed as you think you are. Concentrate on the opportunities you do have and knock them out of the park to open up more doors in the future.
ER prepares you better for a bunch of HF/AM roles, although it depends on what you would want to do. It doesn't sound like you actually have a specific end goal in mind so my advice:
1) Give ER your best shot, maybe you'll actually enjoy the work and want to stay long term
After a while of working in that mindset, you can start to look at the broader picture of how things work:
2) Find out what investors that you speak to are doing and if you would want to eventually switch into their role (AM or HF L/S) 3) Same for upper management in the companies that you cover 3) Consider business school after a few years if you really want to open more doors
Going into anything while focusing/worrying on the exit opps will only limit the amount that you enjoy your job as well as the amount that you actually get out of it.. which ironically, will end up hurting your exit opps
BB ER- what do you learn? (Originally Posted: 09/10/2013)
I just started at a small buy side firm with no structured programme. So im just trying to get a gauge of where i should be in 6 months or 1 year in terms of building models/ understanding the market, or whatever else buldge brackets teach their analysts. Thanks
Hey can you answer this for me now? I'm wondering same thing
It really depends on how esoteric your industry vertical is as well as how silo-ed the team is. For instance, I cover a relatively easy space to pick up vs. something like mining or healthcare equipment. However my team finds it beneficial for everyone to know about all our 28 names so it might take me anywhere between 1-1.5 years to become 100% comfortable speaking on all of them as well as close competitors in depth.
chances with BB ER (Originally Posted: 01/25/2009)
What are the chances of getting into Equity Research in one of the BBs after working for Fed research for one or two years?
73/929
...but seriously... it depends on a lot of factors. You have to give us a lot more info.
depends on other factors, but the experience is definitely transferrable. depends on your interviewing skills.
What would you be doing within Fed Research? Would it involve securities valuation of any type?
Mostly analyzes trends in domestic and global financial system liquidity and credit conditions and assesses domestic and global risks.
I'm wondering if this experience gives me a good foundation for which of the areas in front office BB: equity research, risk management, or trading.
I also have a bachelor degree of finance and math, with a minor in econ from a foreign target school.
Questions about ER at BB (Originally Posted: 08/16/2014)
Hi everyone,
I am interested in a career in ER and I am from a regional target in the west coast. Can someone please share whether BBs have ER positions in the west coast offices? I know ER has fewer headcounts and many BBs do not list whether ER is offered in west coast offices.
Also, is it a good idea for me to work at big 4 tas if I cannot get into ER right after ug? Are those skills from tas helpful in getting a ER job compare to IBD?
Many thanks!
Long story short, yes. My firm which is a BB has ER on the west coast.
As far as big4, I am ex-big4, but it wasn't the easiest of transitions in my experience. I didn't do TAS, but regardless, you're competing against many people with far better credentials (burnt out bankers, ppl with industry exp, consultants). IMO, I got really lucky and don't think my results are replicable.
Having said that, a job is better than no job, and big4 TAS is not a dead end if you wanna go into finance - just be ready to work really friggin hard.
My BB also has some ER people in San Francisco. But not many.
Accepted an offer at BB ER (Originally Posted: 03/25/2015)
I accepted an offer at a BB ER recently. However I am also appearing for my CFA exam this June. For the past few months, due to the interview schedule and some health issues I really couldnt prepare for my CFA exam.
I was wondering if it would be OK to ask for a week off before the exam (7th June) given I will start at the new place only in the 2nd week of April? I dont want to give an impression that I am placing CFA over my career but I really need a week at the end (since I havent really been able to prepare for it whatsoever)
Any advice regarding my situation would be appreciated.
I think they will probably understand. I know some people who got hired and asked for days off in advance; like you already book tickets for later this year so you have to go..lol
There's still tons of time to study, you don't need to take a whole week off unless you actually have a learning disability. Get a good hour or two of studying in every night and do a 3hr practice exam when you wake up Sat/Sun
They should understand.
Not a big deal
But if you're new to ER, I wouldn't be focusing on CFA until you pass all your FINRA exams.
shoudlnt be a problem,. i got a week off (in fact in most BB's you are entitled to a weeks study leave if you are taking professional exams)
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