Independent equity research firms

Hey all, I'm a recent MBA graduate from a top 50 business school and have equity research internship experience on both the buy and sell-sides in NY. I was also a summer associate at a boutique last summer.

I've been approached by some independent research firms like edison - any thoughts on these firms before I proceed?

Thanks!!!

 

Soft or hard dollar payments --- that will depend on various circumstances like the quality of the trading desk, type of research, etc. It is definitely harder for independent shops these days given revenue is down across the board and many do not have other areas to help subsidize them (although some have IB operations). The $$s from clients go much farther at a small operation than "votes" (if you already have a good reputation).

 
saracen:

Hard dollars, accounts will usually pay a fixed fee in exchange for subscribing to the research product - with regards execution a small research boutique will often be a commission sharing agreement with one or more major sell side banks. If its big enough it will have its own execution desks.

+1

It is double pleasure to deceive the deceiver. Niccolo Machiavelli
 

thanks for the info, how much revenue can a boutique ER firm generate this way? I'm assuming the research pieces are expensive but will enough buyside firms subscribe to make it really profitable? Many cite boutique and independent ER firms as the future of research so I am assuming there is some money there

 

Thanks man that helps. If you can chime in what seems to be the some of the more important factors in jumping to the buyside as a junior associate at these type of research shops, outside of luck and timing obviously. Is it just analyst reputation? Client contact? Pedigree? The industry you cover (hear tech helps with HF's)? Firm reputation come into play?

 

Thanks man that is very helpful, appreciate the info. Anyway you suggest gauging analyst reputations outside of II rankings? Trouble is I can only find the top 3 and runner ups in each sector, and most of those go to BB's and Sanford Bernstein and the like, which are tough to land as a recent undergrad.

(Sorry cannot PM yet)

 

The boutique places are not necessarily easier to get in to. It is simply hard to get in to ER due to the very limited need for additional headcount across the entire SS research industry.

Although there are names that are seemingly much less known to the wider community (outside of SS ER), which could provide you with a nice launching pad.

For Europe some of them may include: Berenberg Bank, Autonomous Research, Redburn Partners and others.

 

TheZhanMan, shame nobody has responded. Maybe one of these topics will help:

  • Office environment of SS ER division? your analyst? What % of your time at work do you work independently? Equity Research ... Do most work in a cubicle, and do you get your own cube or do you share? How close do sit next to ...
  • AMA at independent financial adviser or back office at BB? independent financial adviser (9 billion AUM), equity research summer analyst at an indpendent financial ... I am a sophomore at a non-target and I have received offers for summer 2018 and want to hear what ... y'all think would look best for future in IB... Wealth and Asset management rotational analyst at an ...
  • Current Impressions of Sell-Side ER Shops Bernstein- From what I've heard, the best of the independent shops. Close to zero promotions to full ... Hi everyone. I'm a first-year MBA going after ER roles for the summer and I'd love to ... MBA interns so not on my list. 4. BAML- Highly ranked, but just heard that there was a mass exodus at ...
  • What are the best independent research shops? Hey Guys, i was wondering what you guys thought were the best independent research shops? i know ... Strategist as well. any insight would be appreciated. Equity Research bernstein isi cleveland ... that bernstein and isi have great reputations. jeff degraaf, former of isi just started his own shop ...
  • From Private Equity Associate to VP in Private Equity everything you need to know is right here. Private Equity Associate- What Do They Do? PE associates' ... good to know what the competitors are looking at. Megafunds are good for people like CALPERS who need ... / adventurous players, they are not very exciting. 14:30- 15:00 pm Internal meeting to look at our pipeline and ...
  • Independent ER shop Reputations Generalizing, would it be difficult to move to a L/S HF or buyside with some years at these sort of places? ER ... Anyone familiar with the reputations of Evercore or Jefferies research? Thoughts on the firms? ...
  • Advice needed- independent ER shop vs bigger brand name! Hi guys, I have been offered an interview at an independent sell-side ER shop. I currently work at ... exit ops like from an independent shop relative to a BB with a brokerage unit? I would like to have the ... a ratings agency and really want to break into ER
  • More suggestions...

No promises, but sometimes if we mention a user, they will share their wisdom: @Mamarcosmgm17" Cmbakerj analyzed

Fingers crossed that one of those helps you.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Take a look at WSJ's "Best on the Street" analyst rankings that came out last week:

http://online.wsj.com/public/page/best-on-the-street-05102011.html

Most of these places are small specialty shops that focus on a particular industry. I think that these sort of niche firms are great places to start your career if you can't squeeze into a bigger bank. Goldman Sachs analysts ranked? One. Morgan Stanley? One top 5 placement.

 

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