General tips for moving from ER (BB) to AM??
Hi!
Regarding the move from Equity Research in a BB to AM, there might've been threads I missed, but I'd genuinely appreciate any advice here. I accepted a full-time offer to join the ER team, work is good relative to what I get paid; however, it's not that intellectually stimulating in the slightest. Not that I was frustrated (I still like what I do, but it's not the end goal) , I expected this. Why I accepted this offer is because I had no other offers and my university isn't on the top. I know well enough not to get too hopeful to make such move, as large AMers are content with the people they have and rarely seek new blood. What's more perplexing is that I heard unverified information that the new graduate positions (mostly titled "Associate") die out pretty quickly, which contradicts the low turnover rate I just alluded to in a way I hope someone explains it to me???
All in all. Is there a possibility to move to AM? What could make one an acceptable candidate? Should I pursue MBA, CFA (even if I did a MSc)? I'm based in the UK.
Thank you.
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I’m in the US but this should still be relevant. If you are already not intellectually stimulated “in the slightest” and you just started an ER role, I would question your general interest in equities to begin with. Maybe you were just placed in a boring sector that you don’t like? There was plenty I didn’t like when on the sell side, but a lack of intellectual stimulation was not a factor generally speaking, especially in the first year covering a new sector. Keep in mind that on the buyside, where your work is less structured, it’s much more difficult to be successful if you aren’t truly passionate about learning businesses.
The grass is not always greener on buyside either. A lot of the work you will be doing is similar (listening to the same conference calls, taking the same notes, reading the same filings, etc…) so everything won’t all of a sudden be much more interesting to you just because you switched sides (or that will at least fade over time).
On your question about turnover at the associate level, I would say that you heard correctly. Junior roles at large AMs are often structured’ish programs where if you are in the majority that do not get promoted (or that firm just doesn’t promote associates at all) you will spend 2-4 years there and then leave. Not the same as analyst level and above where turnover should be significantly lower and in-line with your initial expectations.
General tips: do the best job you can in your current role (you want the analyst you work for to vouch for you if need be), get the CFA over with as fast as possible (more relevant for LO vs. HF), network, don’t avoid resume drops just because they’re less likely to result in an offer (you never know), work on your interview skills including pitches and why you want to be an investor.
Thanks a lot for your insight.
I think I didn't word that the right way. What I meant was that I feel like the value I'm adding is disposable. Unless it's earnings time, I do meager stuff that anyone with general industry knowledge can do. I am truly passionate about investing, that's why I need a higher outlet
As for the turnover part. If I move from my current position, I'd be conditioned for an associate level, correct? What does it take to be an analyst? I know it's a post-MBA thing in the US but MBAs arent popular across the pond
If associates get laid off quickly, what's their exit opportunity?
I know I'm imploding on you with questions but am a bit callow, so I'm sorry in advance!
Gotcha, that makes sense. Hopefully you can either get more responsibility over time, or you could switch teams internally after 1.5-2 years (or switch banks sooner) if still not happy with the workload. My advice would be to be patient as well if you really want to go buyside. It could take a few years for the right opportunity to come up…
Idk how much experience you have but if <4 years, yes associate level. You’d typically have to be a full fledged analyst on the sell side first to get an analyst role at large LO firm (or an MBA hire). Not the same for some HFs or smaller shops though if you market yourself well or have some level of coverage responsibility.
Exit opportunities if not promoted are: other buyside shop, corporate finance/strategy/IR, MBA, back to sell side, etc…
Is it common for people at BB ER to move to LO AM shops? Interested in this but most of the buyside exits I've seen have been to MM HFs
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