Equity Research Career Path Advice
Currently working a job in Asset Performance Analytics and reporting at a boutique Investment Management firm. Based on my exposure in school, and what I've learned and been exposed too at my current position, I think I would really enjoy working in equity research.
I'm generally knowledgeable about different jobs and functions within equity research, hence my interest, but am less educated on things such as:
coming from a semi target school with a bachelors in Finance, an average GPA but solid experience (2 years worth), am I poised well to pursue entry level equity research positions or am I shooting for the stars here? I can expand on my resume if needed for a more accurate answer.
If more or more relevant experience is needed, what are some less competitive firms that I might have a better chance at getting into? On that note, relative to other industries (RE, IB, HF, etc...) how competitive is equity research?
Any other tips or advice on breaking in, or other important details I might miss are appreciated.
Thanks!
Do you have any prior industry work experience (i.e. outside of finance) that might make you valuable?
I have a good amount of client facing exposure and investor relations experience at this job and my previous job amd even my internship that i feel like could help me with establishing relationships with management teams, others in the industry, etc
Ways to Boost Equity Research Resume (Originally Posted: 06/13/2014)
Hey WSO,
I got shitty grades in college and have but one internship, which dealt with commercial credit for a small bank. I just barely graduated with majors in Finance, Accounting and Economics from a semi-target.
Anyways after graduating last August I got my CPA (a promise I made to the person who paid for my college) and just sat for the first level of my CFA. I haven't been able to get a job though. What can I do, now that I'm done, to boost my chances at getting into equity research/valuation besides relentless networking? Should I volunteer, join toastmasters? Wall Street Prep? Anything? Or just relentless networking?
I think if you haven't gotten one by now your best bet would be to take any job you can that's even remotely relevant - you haven't gotten one yet, and the chances are slimmer and slimmer the longer you go without doing something. I'd get the best job I can, work for a few years, and then try to move to ER
Ya, I was afraid someone was gonna say that. For me its just like f ck any 9-5 job where you're just sitting around waiting for the day to end. I need some adrenaline and I'm trying to do anything else but take a lame job.
Have you done any ER? It's a lot of reading etc and not much adrenaline....
Haha, well I guess it's where the reading leads that is exciting to me.
I talk to a guy every now and again that's been in ER for most of his life, though now on the buy-side. He said he is still gets excited to get in everyday because things are ever-changing and decisions must constantly be made. To be honest, I'm not sure if adrenaline was the exact word I was looking for, however. I'm just looking for something with analytical problem-solving and competition where I'll be pushed to the limit.
Thanks for your input on this, btw. All advice I can get is very helpful at this point.
I have done some ER (moved to IB after) and it's definitely interesting and very enjoyable. However, as I said in my first comment, if you haven't found one by now chances are you probably won't get an ER gig - in all honesty, moving to ER through a top MBA program is probably your best bet.
Not sure how much research you've done or haven't done on MBA programs, but even with a low GPA in college, if you can get some good (even pretty unrelated) work experience under your belt and get some solid ECs etc (and most importantly, show leadership/career progression) you could get into a solid MBA program in a few years and then move to ER after. Hard to see it happening another way (as in without further school - maybe a Masters in Finance would work too).
Well I really do appreciate the advice. I'm not sure I'm willing to swallow that pill yet as I've just truly started looking this week. But I will keep your comments in mind as time wains.
As for grad school, I'd like to keep it in my back pocket for as long as possible. I do hope that some experience and my CPA & CFA will mitigate the damage of the low GPA.
You just passed the CPA right? You can't get the license without work experience and most states won't let you sit without graduate school...
Breaking Into ER - Advice Needed (Originally Posted: 06/13/2017)
Hi All,
So to give you a little background on myself: I've spent the past three years working in the back office at a mutual fund administrator in Ohio. Realized this wasn't for me awhile ago and have been trying to land a spot in ER or something similar in the front office.
To make myself an attractive candidate, I've done the following: -Just took level II of the CFA -completed Wall Street Prep's 3 statement, DCF, and comps modeling modules -wrote a mock research report on a company I've been following -recently compiled a list of analysts in NYC (target area trying to get to) and sent out "cold emails" as a means to network...hoping to see some results from this.
Does anyone have any advice or tips that worked for them to break into the industry? I feel I would be able to impress if given the opportunity on an initial phone screen. However, that has been the hardest part thus far as I have zero contacts in the industry. I feel like applying online is essentially throwing my resume into a black hole. Any insight would be much appreciated.
Thanks!
If you want to break into the ER. For starters you're getting all the wrong experience...
CFA, DCF & Comps Modeling, and mock research on companies won't help when a patient comes into the ER at 2am with a compound clavicular fracture... or worse yet, a myocardial infarction!
For beginners, you'll want to attend a University and study the sciences (chem, bio, psychology), some schools may also have an undergraduate Nursing program you can attend. Subsequent graduation, it is common to volunteer for a year or two while studying for the MCAT and obtaining your EMT certification, before entering into an DO/MD, PA, RN, or Nurse Practitioner program.
In you're graduate program you'll want to do rotations in the ER, and develop relationships with some of the Managing Doctors on the floor. Networking will be key to obtaining a position post graduation as the ER is a very sought after department in most hospitals, there are long hours, high pay, and constantly changing scenarios.
Sounds like you are doing all the right things. I would suggest reaching out to people who have a similar background as you such as having had worked at the same firm or graduated from the same university. In my experiences, these types of people were very willing to help me out.
getting into ER has a lot more to do with luck and networking than you think
Help a college junior break into Equity Research! What steps do I take next? (Originally Posted: 11/24/2017)
About me: -Studying Finance at Kenan Flager (UNC) -Will most likely graduate Summer 2019 -Really good Grades-3.88 GPA (likely will go down a bit in the next year) -Haven't taken GMAT yet -Two internships but unrelated to ER (Real Estate and Sales) -Considering either MF or MBA but not sure which one if either (goal is Wharton for MBA or MIT if MF) -Dad runs a super small hedge fund (~80M) but working for him isn't an option ATM -Wants to get into ER to learn and study and become a better investor, but not for a long-term career
Thanks for reading all that, I look forward to any advice I can get!
Keep GPA up and take Dec '18 CFA level 1. Can your dad just say that you were a summer ER associate at his HF? Works better if your family's last name isn't in the fund's name.
I didn't get into ER via campus recruitment, so I'm not an authority, but I'd have to imagine you'd at least be able to get interviews.
Take the CFA Level 1 before you graduate. Practice writing up equity research reports/doing some modeling. Attach these to any ER job you apply for. Try to get an ER internship for the coming summer, your best bet would be to apply far and wide and network your ass off. MF/MBA won't help you get into ER, networking studying for the CFA and practicing writing ER reports/modeling would be a much better use of your time
You have missed the boat... most firms are done recruiting. Maybe you still have a chance at some smaller ones.
University Senior looking at pathways to ER (Originally Posted: 12/08/2017)
Was wondering if being a sales analyst at a f500 would add to being an attractive candidate for ER. Want to know what other options I can explore that will add value while studying for CFA.
Background: Non-target, economics major ~3.0cgpa No prior work experience in anything relevant.
Thanks!
I think it could be attractive with the caveat that you spin the industry knowledge and experience in whatever sector your F500 company is in to join a research team covering that industry. For example if you're a sales analyst at Verizon, you could leverage that to join a telecom team. Analysts like people with industry experience and the CFA program and relevant major should help. Other than that do some investing on your own (good conversation topic/shows interest) and have good stock pitches for interviews.
Thank you very much for you reply
I've been flustered recently trying to figure out how to get where I want to go. Your response has given me a little more confidence in pursuing opportunities that are not directly in the Investment realm. Hopefully with enough effort it will all turn out well.
Thanks again!
How did you get the knowledge required for your ER gig? (Originally Posted: 01/19/2018)
MAIN Question is in bold below
I have 6 months to land an ER gig.
I know what I have to do:
-Write a research report -Learn to build DCF models like the back of my hand -> -Send these out like crazy in networking attempts. -> -Learn accounting/ IB technical guides etc for interview questions
All the while: -Learn how to invest & talk intelligently enough about investing -Keep up with, understand, and really understand markets, current events, etc -Learn as much as possible about a particular sector*
*(I would want Consumer Staples, but I hear this isn't all that crucial as the skills transfer to most sectors and you can get hired without a great knowledge of the sector if you have modeling/investing knowledge)
I don't know HOW to most EFFICIENTLY do it:
What are practical tips to incorporate the MOST efficient way of learning what I need to learn?
-Read WSJ daily. -Read Books about Investing (Nightly?) -Practice modeling with excel courses an hour a day -Read IB guides for interview questions an hour a day -Research a couple companies ???? (No idea how to start my research report)
Is this sufficient? Is this what you did?
Just feel like this a mountain of work and I don't even know what to prioritize/ how to effectively apply this process in my life
I wanna do ER for 2 years at least; then figure my life out. MiFID can't kill this whole industry enough in 2 years (I really freaking hope)
I think there are two main components to being qualified to work as an ER associate:
You seem to have a good game plan that hits both of those. I did BIWS courses and then created my own models for a few sectors. Through my network, I was introduced to some SS analysts and eventually one of those conversations led to an interview. Having a research report (1pg writeup) and a 3-statemet model will help. I would pick a relatively simple company and try to create a model and come up with some investment thesis.
It is definitely a tough area to break into given how few seats there are and how unpredictable turnover is but if you have a mind for ER, you will be grateful when you get in.
Thanks so much man. The main modeling techniques that I should know are DCF analysis and comps right? Only ask because you say models. That's awesome that you got in through networking. I will be doing this hard as soon as I have my write-up/model.
Sorry, I'm still new to do this, but by the 3 statement model, do you just mean the DCF?
And yes, I clearly have a steep learning curve ahead of me, but this is something I'd like to learn and although a little challenging, look forward to the process
How do I get into ER? (Originally Posted: 05/07/2017)
Senior in a west coast non target top 40. Math and Econ double major. Decent GPA, good ECs and an ER internship. Will do an IB internship in a small boutique in NYC, currently doing some ER stuff for them remotely. The president there told me that I do good reports (relatively speaking, to peer interns/students) and probably I won't get into IBD in the U.S. since I'm an international student.
I have also talked to someone working in a Canadian EB IBD. (His passion lies with ER) He told me that he went to IBD to get more deal experience to go back to ER, and that Masters and even PhDs are highly evaluated in ER.
Any insights? Do I pursue a MSF, or can I do Masters in Economics/ Financial Mathematics to get into ER?
Thanks a lot.
I would not rule out IB just because you are an international student in the USA. Many internationals work in IB in the USA and are seen everywhere on the street. Just believe in yourself and pursue what you are interested in whether it be IB/ER.
Thx !
Setting up my own portfolio to help get into ER (Originally Posted: 03/01/2015)
I've heard from both people who've gone into ER as well as recruiters that for anyone wishing to work in this field it is very important to have your own stock portfolio that you can talk about.
What I was wondering was what might be the best way of going about this? My questions are:
1) How much additional weight does having a real portfolio vs a virtual portfolio carry?
2) My thoughts are that as a casual investor (for the time being) working a full time job, I don't have the time (or the specialist industry knowledge) to build full financial models for all the companies I might be interested in. As such I was thinking of setting up some comparables analysis models for a few different industries for firms listed on the FTSE (I'm in the UK) and then based on the analysis from there, put some money (either real or virtual portfolio) behind the ones I find most attractive based on that analysis. How does this sound as an approach?
3) What kind of questions about my personal portfolio might I be asked in an ER interview?
(More interested in sell side than buy side ER for the time being, in case it makes any difference)
1) A virtual portfolio doesn't hold much weight. Anybody can enter into an investopedia stock picking contest and throw around fake money. What matters is that you have skin in the game. There is a huge difference between picking stocks with fake money and picking stocks when you're using the money that you've worked hard for and it would hurt to lose it. Additionally, when you are using your own money, I guarantee that you will conduct much more thorough research and analysis because you're putting your money at risk. It will also allow you to learn things about yourself and understand the emotional aspect of investing and the biases that come along with it.
2) Comparables analysis is good when it is supplemental to fundamental analysis. Generally in ER, you're going to take a dive into the company and undertstand it from a fundamental standpoint. Once you have a thorough understanding of the business, then you can use a comps approach and look at it vs. its peers and why they are trading at different multiples, etc. I would really recommend at least building full models for a few companies. You'll be modeling companies in ER and it would be great to speak from experience in an interview. It will also help you learn how your assumptions can drive changes throughout the model and affect your final valuation.
3) These are the questions I received about my personal portfolio during the interview process: -"What's the best/worst trade you've made?" -"What is the biggest mistake you've made investing? Why did you make it? What did you learn from it?" -"What is the last stock you bought/sold? Why?" -"What do you all have you in your portfolio?" - If you use index funds like Vanguard, I would not bring these up. It is an ER analyst's job to believe that the markets are not efficient and if you say that you use index funds they may question your passion for research.
These are the types of questions that can't be answered with a virtual portfolio. I would recommend looking around and seeing what brokerages will allow to start an account with a smaller sum. Even having $500 in the game is 10x better than running a fake portfolio.
1) I think that's a fair point, I just wanted to confirm it. I don't have loads of spare cash laying around (far from it), but I can afford to put say a thousand or so into a few different stocks and it won't affect me at all.
2) The reason I'm thikning of using the comparables approach is that I can use that to capture a wide array of companies and then narrow down my search from there. Otherwise it would be much more difficult to find a company out of all the FTSE listed ones and then start modelling it. I could do a two tiered approach by first using comparables to find one that seems undervalued and then building a more comprehensive model to see if the fundamentals analysis (which I'd do anyway but on a much less substantial level if not modelling comprehensively) adds up to it being a good investment in my opinion.
3) Thanks for the questions, those seem quite reasonable ones and definitely ones where having a portfolio will help me answer them.
I think you should focus on understanding how a research process works and building out a rounded thesis before you start messing around with portfolios. The best way to see if you like doing fundamental research is spending a couple weeks/a month or so studying a single company.
I've never actually had a portfolio when I went in for interviews. I think it's fine to not have one, so long as you still demonstrate an interest in the markets and that you've put in some effort to learn fundamental analysis. I would say to just pick a company that seems interesting and dive into it. Doesn't have to be the most attractive stock. Your research process might tell you that the stock is fairly valued, but the important thing was the process and not whether you actually traded the stock
Thanks. I think this makes sense since at least as a sell side analyst your job isn't necessarily stock picking but more about giving an opinion on a company (or so it seems to me). Obviously this is different for an analyst working in a fund as their job is very much about finding good buys.
This is making me think that in addition to buying some stocks, it might be beneficial to just try and model some companies I find interesting and see how close I get to the quarterly earnings reports as that will be a closer approximation of the work of a sell side analyst.
I presume a chartered accountancy background (which is where I'm coming from) is beneficial for fundamental analysis as you've got a good grasp of many of the financial reporting and accounting issues?
Accounting background is helpful but can hurt you if you don't understand the difference between accounting standards and economic reality. I got in with my own initiation type reports. tons of detail that demonstrates industry and company specific characteristics along with showing your modeling and writing skills. Don't pitch hot stuff like Apple or tesla that Jim Cramer talks about all day.
Thought I'd post a bit of a progress update:
I have set up my own stock portfolio and invested into a few stocks. I currently have 3 stocks in it and am about to add a 4th. For 3 of these stocks I've built some relatively simple models and come up with my own valuations (however flawed my assumptions may be). I think I've got some alright points as to why I've picked these companies to invest into.
Would this be a good platform off of which to try and sell myself to Equity Research roles?
Its less about talking about your portfolio and more about being able to talk about individual stocks. Having a portfolio helps in that if you pick stocks for your portfolio you have a library of stocks and investing experience to talk about during your interview. E.g. I made X% on this stock last year, i picked it because it was valued at x.x p/e discount to peers despite having x and x. Consesus EPS was x but I thought it would be x. Catalyst for re-rating higher for me was x. Etc., etc. Even if you are wrong having actual experiences to talk about will engage your interviewer in a way that someone that hasn't made or lost money in the market will not be able to. That is the upside to owning real stocks. Plus you will find that you remember the ups and downs of the stock much more and will be much more motivated if your entire savings is riding on it.
Once you mention what stocks you own that will open you up to questions on the specific stocks though. So if you don't know a company really well just don't mention it. If you made 40% profit on a company but can't answer detail questions about it (multiples, why is it cheap?, catalyst, business model vs peers), it won't help you much.
Breaking into ER (Originally Posted: 10/04/2017)
I am a CPA in public practice who is looking to transition to ER. I have a finance degree, am a financial statement expert, have great modeling skills and have lots of experience serving and presenting to clients and prospects. I have written my own research report and have backed it with a model to help show prospective employers what I can do and why I would do great in an entry level position. I have been having trouble getting interviews, what else can I do?
The most important thing to do is to network, network and then network some more. Craft a compelling story about why you want to be in ER and be ready to demonstrate your passion for the markets. Write more reports and build more models.
If you're really set on making a move consider an MBA. This is a higher risk move since ER hiring is not as structured as banking, so timing will make a big difference, but this is how I (also a CPA) and several others I know broke in. The reason why the MBA helps is because it affords you access to a network of people in research who can refer you in. If you don't want to do an MBA, then start your CFA to show you're serious about a career in research.
Thanks for the advice on this. I am really trying to avoid the MBA route if I can get away with it but really like the point about the CFA. Going to have to get myself going on level 1.
Getting in to ER, harder/easier than getting into any other product group? (Originally Posted: 03/09/2015)
I know I want to end up in IB without a single doubt. As of late, I've been liking the idea of ER more than M&A. I had my mind set on M&A, but I feel like I want that work/life balance that you just won't get with M&A.
There seems to be more M&A, DCM/LevFin positions listed than ER...Does this mean it's harder to break in? Any possible recommendations?
Most people on this forum will probably say that breaking into ER is 'easier' than a product group, and also say that sell-side ER people are blowing smoke 95% of the time and don't provide real value. I think the fact that you're finding more roles is just a reflection of need instead of 'prestige'. Both are great FO roles.
Actually, I'd say its harder, but that depends on what stage in your career you are at. If you have experience, my impression is that it is easier. If you're in college, then IB is probably easier because most ER recruiters look for a few years of experience.
Without getting into which is harder, I'll say that breaking into ER is different. There are fewer positions available because ER teams are much smaller. Analysts usually only have 1-2 associates and teams don't need to be much bigger than that for the most part. You also aren't necessarily expected to leave after 2-3 years the way you are in IB so you tend to have lower turnover as well.
Yeah ER is not your typical 2 and out program, it's much more for people who know they are in it for the long haul/ only want to leave for AM or HF. Your exit opps are more limited and can be harder to leave than the established IB recruiting pipelines.
That being said, ER hours are much better, I would argue that the people are more down to earth depending on where you go, and you are going to learn a lot. Some ER analysts may just blow smoke on their investment recommendations, but the level of detail and quality of analysis you do on these businesses really helps you learn more than plugging in random numbers into a model to get a deal where your MD thinks it should be. I felt like I added a lot more value to our work than my peers in IB did, and as a result I was a lot happier.
As for difficulty, an ER as a whole is smaller than IB. Intern classes are generally 15-25 people at BBs, of which very few do not accept full time offers. So if you are trying to break in FT, you are looking at 2-3 spots per BB available, most of which get staffed by internal transfers from other divisions or other firms. However, this doesn't really talk about acceptance rates. The number of people interested in ER is most certainly less than IB, so there's not a definitive answer as if ER is more selective than IB. They certainly have preferences for interns/analysts who have investment backgrounds over FP&A, but plenty of FP&A people work in ER.
Being pedantic, but want to point out that ER =/= IB.
Some fair points above - consensus based on what I've seen and heard indicates that ER is typically less "competitive" than ib because fewer people want er. However there are fewer spots and turnover is much lower (and hiring is often as hoc rather than structured - doesn't really apply to you though as you've already worked so would be as hoc anyway) so that aspect makes it difficult. Bet net hard to say for sure.
Finally, while it's usually true that er is a better lifestyle etc it depends on where you go - I know people in er who worked banking hours - so do your due diligence before picking a place and expecting it to be more cruisy than banking
First of all, if you want to break into ER, I highly suggest you network your way in, just as you would in IB at that point in your game...unless you're considering grad school. Second, I would choose a few focus sectors, so that you can really narrow in on your choices and have a few good pitches and show some enthusiasm around a particular space when you interview...trust me, analysts want to know that you're in love with the space (it helps to know that because during earnings...if you dislike the space, you'll hate your job and your analyst will probably hate you, haha)...lastly, I wanted to say that I think I work pretty close to banking hours as an associate. During regular work weeks, I work typically from 7am to 9pm. During earnings, banking deals, or initiations, imagine days of 6:15am to 1am+
Anyway, that's just some food for thought, hope that helps.
As in, in the office for that whole time frame?
Great info in this thread. Could anyone speak to ER recruiting out of business school for career switchers?
Non Traditional Ways to Get Into ER? (Originally Posted: 05/28/2013)
What are the best non traditional ways to get into ER? How do you get into ER if you can't hack it right out of undergrad?
Try applying to Greene Holcomb Fisher in Minneapolis.
IB and ER are quite different. I'd look into ER positions in Minny given your profile.
Thanks for the advice,
I'm leaning more towards ER at this point. There just aren't that many ER positions in Minneapolis, where most of my connections and network are. Would I have any shot at ER outside of Minnesota without extensive networking? Or is my school too non-target? Any tips or advice for a non target trying to break into a new market?
There aren't a ton, but there are more than you probably have considered.
Piper, Craig Hallum, Northland Securities/CM, JMP has an office there... and there are a few others (RBC may have someone, Bernstein has some positions similar to ER, etc.)
Look into Piper Jaffray, I think they're HQed in Minnesota. Look for anybody in your network that currently works there
Yeah, there are a decent number of firms but they just don't hire that many people. I've already been turned down by Piper, GHF, Craig Hallum, Northland, Dougherty. The positions were going to Ivy/Northwestern kids or MBAs. I know RBC has a decent sized research presence in Minneapolis but they only have back office stuff right now. Any thoughts on going back office, getting my CFA and then trying to break in to ER? Or is that a death trap?
Death trap.
Do you have any time to study for the CFA for December? My firm's ER branch (MM) gives preference to applicants who have already completed Level 1 for their entry Associate position. Having Level 1 done would definitely be a HUGE advantage to you when it comes to recruiting.
Yeah, I'm sitting for it in December. I would like to work while I get it. Are there any jobs with a chance of leading to ER?
I got into sellside ER in a non-traditional way. I worked a year and three months in a niche valuation consulting firm out of undergrad, passed my CFA level 1 exam in December, (taking CFA level 2 exam in a few days) and recently began working at a middle-market investment bank in sellside ER. I had an investment banking internship on my resume (reputable boutique) during college though. I had pretty good stats all around though, 3.5 GPA, west coast target, interest in CFA, leadership/community involvement, etc. I would recommend passing at least level 1 of the CFA exam to demonstrate interest. I think during interviews there were definitely candidates who had better resumes than me, some even with sellside ER experience already, but I had "the story" so to speak. My story was about why I didnt want to do IB and wanted sellside ER and why the industry coverage interested me. January-April is the best time to keep an eye out for postings as associates jump ship after getting their bonuses.
Not that I'm the best example, having gone into ER straight out of undergrad, but ER also attracts people from non-finance backgrounds with a deep industry knowledge. For example, many healthcare/medical device/biotech analysts have clinical or academic backgrounds. Even if you put ER on hold for a while and do something else, you can potentially leverage your knowledge of an industry to break in down the line.
PS. Why do you believe you can't "hack it" right out of undergrad? Maybe you should consider doing something to boost your confidence. Your insecurity may be coming through when you're meeting with people.
Personal Portfolio to break into ER? (Originally Posted: 05/18/2012)
After speaking to a number of recruiters one point that came through is the emphasis placed on a genuine passion for investments and a good understanding of a particular group of stocks or markets. A few recruiters mentioned it would be easier to break into ER if you already had a portfolio. It doesn't necessarily need to be successful as long as you can talk intelligently about the companies, and the decisions you made.
So would you guys agree with this advice, and if so how would someone get started in trading and setting up a personal portfolio?
I agree. I am starting to recruit for ER internships now (starting b-school in the fall) and the recruiters/associates i've spoken to always like that I have money in the markets. More then just being something good to tell recruiters, it almost guarantees you will know what is going on in the markets (with your money on the line, you tend to follow the markets much closer).
As far as how to open an account, just pick a discount broker and you can start trading as soon as you fund your account. If you work at a bulge bracket, or any sort of financial services firm currently, you may want to check your firm's employee trading policy. If not, then you can pretty much pick any broker you want. Some brokers have paper trading which allows you to trade with fake money. You may want to do this first just to get a feel for what its like. I know think or swim use to allow paper trading a couple of years ago, but dk if they still do since being bought by TD ameritrade.
Optionshouse is extremely cheap in comparison ($4/trade) and allows for a virtual account FYI.
While this may not exponentially increase your odds of getting recruited, I think it does give you an edge and is a bonus point for recruiters in regards of something to talk about and help legitimize your case.
My ex-firm used to encourage ER interns to use the investopedia simulation. Practical experience is a big plus. A good friend of mine screwed up an interview with CS because her response to what she does in her spare time revolved around hanging with friends and watching TV. Panel was looking for a weekend activity in trading/stock tracking.
Really? Admittedly, I am not in ER, but saying that you invest in your free time strikes me as saying your favorite book is The Intelligent Investor. If that's why they rejected her, that is rough.
No PA (real or paper), is a ding-able offense. Also never say "efficient market hypothesis" in a interview.
Trying to land a job in the equity research or financial analysis field. (Originally Posted: 01/03/2014)
I love the stock market and switched majors to become an econ major my sophomore year because macro and micro were my favorite classes. I really gained interest in the stock market my junior year when I learned about options and because I started watching Jim Cramer. Peter Lynchs' books also sparked my interest in investing. I started my portfolio September 2012 to give myself some hands on experience and I've been teaching myself finance with investopedia, books, and a couple classes; I've also been starting learing more about modeling/valuation through youtube DCF videos. I really want to break into equity research and analysis but my work experience hasn't really helped me achieve this goal. I know a job in this field would be one I truly enjoy going to everyday, as well as one that I will excel at because I am very good at math/statistics and I love reading/learning about the markets and investing.
Any tips as to what sort of roles I should apply to to break into this, and or what companies to be targeting would be greatly appreciated.
Any help is appreciated and if you have any good books that you think I should ready, let me know.
Jon
I'm not a fan of using first person in work experience bullet points:
"Frequently engage my curiosity for the equity markets by starting insightful conversations with clients.."
"Taught myself how to use Fidelity’s Active Trader Pro Platform and gained a comprehensive understanding of the online website, which helped me generate the most leads for my team in November"
I also don't like seeing "CFA level 1 candidate". Everyone and their mother is a CFA level 1 candidate. You haven't accomplished anything until you actually passed the first exam.
Lastly, take out all of your personal information.
As for the rest, hopefully someone else will be more helpful.
Dude, you need to make your resume more anonymous. Get rid your name, school, number, email address and places you worked before and re-up.
Seems a bit cluttered for my test. Use the M&I format Google it. Have you school on top below your name and so forth. Would but all the series you earned in the bottom of the resume.
Also, get rid of "Passed the Series 7 & 63 exams in less than five weeks because of my ability to assimilate new ideas quickly "
Lateraling into Equity Research (Originally Posted: 02/28/2017)
Hi guys,
I have some industry experience in a certain vertical and have been trying to get into equity research. I have a finance degree from an good undergrad and 2.5 years experience in a finance role at my current company.
I have reached out to analysts in my industry and have gotten about a 50% reply rate. At this point ive talked to 5 of the 12 or so analysts that cover my sector and they have been receptive to my background, a couple even said they would love to refer me if they hear of any openings not at their shop and to stay in close contact.
At this point im not sure what else I can do in order to increase my chances, how do I go about maintaining and strengthening my chances of getting interviews with these analysts and others? Not sure what to do besides annoy them every month or so and ask if they heard about anything.
Ive tried reaching out to analysts in other sectors and havent got much in the way of replys.
Bumping this for advice.
Apply to any ER position you see and as many as possible.
Thanks
One more bump on this.
Lateraling into ER (Originally Posted: 01/21/2013)
Do you see this very often? Obviously not from anything IB-related, but what about people lateraling to ER from industry-specific commercial or corporate banking after a couple years? Thoughts?
I lateraled from IB, so did everyone in my office. It's pretty common bro. Similar pay, better hours, closer to the market.
You occasionally see people come from the industry they cover. For instance, Mike Mayo was a bank examiner before he went into ER, covering banks. Actuaries might cover insurers, biomedical engineers and doctors might cover pharma/biotech, etc.
I think this is more common in more esoteric industries - you don't need to have experience in a consumer goods company to be a good consumer analyst.
Same here, or rather IB SA w/ return offer to ER FT
I see it happen more from the corporate finance side rather than the IBD side, but this is from my experience. I don't doubt though that you can lateral from IBD. I think if you work in an investor relations department for a F500, you have a fairly good chance of moving to ER if you play the right cards.
I know people lateral from IB, I'm sure it's a popular move. I just meant that my question was targeting experiences and thoughts about people lateraling from other industries like commercial banking or corporate finance.
I know a couple people who lateraled from a F100 corporate finance and BB corporate banking into ER... note that these people were constantly plugged into the markets, gained a lot of in-depth industry specific knowledge after 2+ years in their previous jobs, polished up their modeling skills, and then networked their way in.
Appreciate all the insight, sounds like in order to be competitive one needs to be very active on their own while not at work. Staying as close as you can to the markets, staying up to date on news affecting your industry, working on modeling skills, and networking. Any ideas on how to polish up on modeling skills on my own time? Thanks
Well it depends on your current excel and modeling skills/experience ... but Wall Street Prep (WSO) and Breaking into Wall Street (M&I) both offer self study valuation and modeling courses. They can add up to a few hundred dollars so I would do some research before purchasing them. Also, you should definitely be cognizant of the differences between standard banking modeling (firm valuation from the target's/acquirer's point of view) and ER modeling (focuses on equity valuation from the investor's point of view)
I work within a Credit Risk at a BB – not IB; we travel around and audit third party vendors for compliance with state, fed (Dodd Frank), investor, etc. guidelines and analyze their policies, procedures and systems/software for gaps and weaknesses via interviews with execs, management, staff, etc. writing summary reports for our execs to determine future work allocations.. Our annual book of work is valued at over 1B or so. My boss asked that I write up a statement describing my career aspirations and what kind of projects, responsibilities, and competencies/skills I should undertake and/or polish in my current role that would aid in transitioning to a different dept./role (trying to get into research). So with that, any suggestions? I have a writing background and really do enjoy peeling back the ‘hood’ to look at how a company operates but just not on the same level as a research analyst would, with the financials being one of the larger puzzle pieces of the companies we don’t normally review..
Also (as part of my career development – my boss is the $hit), I just moved to NYC to be closer to the ‘action,’ business schools, The Street, and wondered if any of you guys get up for dranks outside of the scheduled WO Happy Hour sessions? I’m working in Downtown Brooklyn, Metrotech.
I'm not in ER but know a handful of people that are. They all came in from industry, but I'm in an O&G city, and oil is one of those industries where first hand experience will teach you more than an MBA, so I wouldn't automatically assume that's normal.
How to get an offer in Equity Research(sell and buy side) (Originally Posted: 07/10/2013)
Hi everyone,
I earned my bachelor's degree overseas and graduated from a master's program of a target US school half year ago. Since this January, I interned part-time(15 to 20 hours per week) for a very small hedge fund(less than three people) doing equity research. I quit this one month ago because they don't have headcount for full-time job and it's unpaid. I am looking for a full-time or internship that may lead to full-time in either buy or sell-side.
I am looking for jobs full-time and planning to give myself two or three months. As I have been out of school for half year, doing part-time internship and preparing my CFA II, I am wondering are there some companies would mind that I didn't really work(full-time) for half year or more? ? I'm not sure how to positioning and sell myself. Any firm I should look into that hiring people like my background?
All comments are greatly appreciated!
You quit your job without having another one lined up?
I was preparing for the CFA II this June and quit the part-time internship. It was at a small town and unpaid. Then I moved to NYC and trying to find a full-time or internship here.
Dumbest mistake prospective ER candidates make is just applying to the BBs, e.g. Barclays, Credit Suisse, etc.
They aren't going to hire you until you have a few years of experience. You need to go small to a boutique, independent research shop, or something along those lines. There really are A LOT of opportunities out there yet candidates lack the ability to find them.
Ergo, my advice - look harder.
Online you need scrutinize every posting on efinancialcareers, recruiting firms, monster, indeed, linkedin, etc. The more time you put in it, the more likely you will find some of the lesser known openings out there.
There's a big need in the ER industry for people who can crunch some numbers and do some research, things you don't need years of experience to do.
Even if you can't find ER any sort of research position is a good experience. There are multitudes of market research firms that can give you some good skills and something to put on your resume. You can even try consulting or capital markets research and put yourself in a good place.
At this pt it's all a numbers game, keep chugging.
I think anyone who quits a job (paid or not) to study for the CFA is making a huge mistake. I've read people doing that on anaylst forum... lol
Swiss student trying to break into ER- advice needed! (Originally Posted: 08/17/2013)
I posted this originally in another Forum on WSO....Unfortunately, nobody had an awnser, so I am posting this here. Thank you in advance for ANY tips, advice, or whatever....
I recently finished swiss high School (top 10% of my region) and now I am beginning a Bachelor in Banking&Finance (expecting to graduate in 2016). I speak German (native), English, Spanish and French (all of these fluently).
My target is to break into S&T or ER. To reach this goal. I am conscious that I must have completed at least one or two internships in a related field....
I dont have any experince in finance expect that I am trading since a year and doing market research for it...
Here in Switzerland it is impossible to get an internship as a first year student even in other fields in finance (also in Back Office). As I have read in various Posts here at WSO, it seems to be extremely normal that you ve done internships during your first two years of your undergraduate degree....so I assume it may be quite easier to get internsips in the US compared to Switzerland or Mainland Europe....
That is why I am pursuing to find a summer internship for 2014 in the U.S, hoping to learn a lot and getting an experience (even if it would be a bad one). I am eager to intern in a random field of finance, as long as it maximizes my chances getting into S&T or ER after graduation...I would also be interning for free...
I dont have any contacts in the States, where should I start? Should I cold-emailing random dudes working in Finance? Or may it be a good idea to fly to the U.S. for a few days, just for Networking purposes?
Would it be considered rather negative or positive if I would cold-email a random dude working in S&T/ER in the U.S?
And where should I apply? Which places are the most receptive to a swiss guy, willing to breaking into Finance? Small boutiques? Or even local BB places like in Texas?
Which S&T and ER-related fields are a good starting point for a career?
==> Do I have a chance as a swiss guy (due to the negative Image of my country in the U.S) getting a summer internship in 2014 (I would even work for 0.0$, just for gaining experience, knowledge and a name on my CV)?
==> When should I start networking? In September, October? Should I even do a trip to the U.S. to get in touch with guys working in those fields?
==> Do you consider me naive because I am willing to intern in the U.S?
I would be extremely grateful for any responses or advices!!!
Greetings from the swiss alps.
have a good day,
SwissChocolate
Being European, maybe I'll be able to share some experiences with you: - go for rather big firms only. Boutiques and the like won't even bother caring about visas, even if student visas are (basically) free and super flexible - sign up for linkedin and xing, get a premium account for the latter - reach out to Swiss/German/Austrian or maybe other European guys working in the US - reach out to guys in Switzerland/Germany/etc. who have worked in that field in the US, they might have contacts - reach out to guys in Switzerland/Germany/Austria currently working in the field for general networking and future opportunities in Europe. You'll a) need a back-up plan in general and b) assume that you won't be able to make it to the US anytime soon, so even an internship in Zurich or Frankfurt in one, two, three years might be a start - don't even bother contacting anyone in HR in the US. They are useless as sh*t over there. Way way more so than in Europe. - don't make a quick trip to the US. It won't pay. You won't be able to make as many contacts to justify the effort/cost. Don't even think about it - also consider the Big4 for non-ER internships immediately in Switzerland, ideally their advisory stuff. They do international internship programs, allowing you to maybe do an internship (even if it's nothing related to ER) in the US at some point down the road; this way you'll be able to say "hey, I already worked in the US" und might be able to meet some people while you're there, even if it's not until two or three years from now.
Thanks for your response! I always considered Big4 as a good starting Point, because they are offering internship to freshmen/first year which Banks dont... So I will apply for various internships at Big4 firms in Germany, because they have more opportunities than in CH...The most interesting internship I ve found is in forensic service (advisory). Do you consider this internship as a good starting point for getting into ER/S&T or should I am in another direction within the advisory stuff? Btw., did you go to WHU? Thx
I am not really sure, but I thought banks like socgen have programs for EU students only. I don't know how they work, but maybe you can look outside of switzerland for an internship.
I don't know what exactly they do in forensics, but while I guess it's better than no internship at all (forget about finishing your bachelor's as quick as possible - many internships are way better than a quick degree, I didn't realize that until later myself), it doesn't look like it would translate into too much useful for your ER plans. I'd rather get into Valuation & Strategy (or Valuation & Economics, if that's how they call it in Switzerland. I once interned in that team myself in Germany), since you get quite a bunch of modeling and accounting experience there. In general, in Germany (and probably the rest of Europe) valuation is waaaayyy more detailed/sophisticated than in the US.
I didn't go to WHU, but I know a bunch of guys who went there, and they were all happy. My guess would be that WHU and EBS (but please, don't go to EBS) are the top feeders for anythin relating to I-Banking in Germany.
I didn't know Switzerland had a negative image in any country. Certainly not in the US and certainly not in the finance world. Not sure where you get this idea, or that it's easy to find a freshman or sophomore finance internship as an American student.
Don't know what it's like in EU but in the US having any serious office type work experience as a Freshman puts you way ahead so you should not be as concerned as your post makes you sound. Any internship at a professional firm will be great for you and you should feel good about doing any work that's above call center as a Freshman.
Concerning the Image of Switzerland, see my other post...
That it is easy to find a freshmen internship, I deduce that from several Posts of Monkeys here @WSO. They are saying that they got a PWM internship at this BB, another one there and so on....Maybe I am judging wrong, but I just had the impression that you guys in the U.S have quite more experience in an early level that we got in Switerland....
My concern is just that without any suitable internship after my first year at University I will be down and out to get a FToffer in ER. I am afraid that recruiters are telling me: "well, Mr.Swisschocolate, you ve done a freshmen internship at FirmXY but not related to ER...Therefore, we cant accept you...."
Let me give you a direct tip. Email [email protected] and convince him why you would be a good candidate. They are known to hire freshmen and sophomores as interns. They may have something for you, but you may have to consider the cost of coming to the US as I am not sure if this would be paid or not.
I do not know him personally, or have any connections. I know as much as anyone who would visit their Web site.
http://www.grandeurpeakglobal.com/eric-huefner.php
@all: Thanks for those Responses and advices! I am glad you had some tips for me!
Concerning the image of Switzerland in the U.S.: it isn`t about the quality of the academical institutions (swiss universities etc...), it is about the politics, the "war" in the tax affair between CH and USA...If you follow swiss medias which are often interviewing american politicians, you will see that the majority of them is quite aggressive towards CH, especially the democrats...They are saying that Switzerland is one of the guilty ones of the financial crisis....
Me neither, I am also not going to WHU...I just had the Intention that you re studying there.... How hard was it for you to get into that Valuation&Strategy type of internship? Did you have any previous internships on your CV or not? And do you think that a Student with only 2 Semesters can compete against other applicants with more experience?
Didn't have any previous internships before (save for meaningless pre-university stuff), but one of the senior managers was a lecturer at my university, so he knew me a bit from class already. Apart from that, I had largely a near-perfect GPA and some experience as a student research assistant going for me. In the phone interview they still grilled me on the technicals, 'though. Also, the other interns in the two teams (they are set up in multiple teams) I was working for seemed to have heavy credentials as well, with 1.x GPAs at their universities. Of the three I met, one now works as an analyst for GS, the other is still in school but afterwards starting with McK, and the third one I don't know what he's doing or going to do, but he got a 790 on the GMAT.
best role to jump from in order to break into ER? (Originally Posted: 01/20/2015)
as the title says, which one would be? I am based in EUROPE. here's my reasoning and why i ask:
given: virtually every opportunity (not straight from grad) demands 1-2y of previous Equity Research sell/buy side experience
1) as a salesman you are close to the markets but, even if you are doing plain equities, the skillset is not that transferrable 2) M&A: deal based, you get the general business sense but, unlike the US, it's not that magical door that gets to every magical place on earth 3) small private equity shops: basically same reasoning above (i am mentioning this because i might have some opportunities but are really small shops) 4) ECM/DCM: again skillset is not really transferrable.
so i was a bit unsure as to which road to choose (assume they are all equally walkable). also, from experience, would you say that "skillset proximity" is more important than the brand of the shop?
i am aware this sort of reasoning might raise many eyebrows but please remember that here in Europe things work a little differently (at least according to what i read and the people i talked to)
I would say a markets role would be preferable as long as it has some fundamental approach. The equity sales option makes the most sense imo. However, have you applied for SA positions? I can confirm BB in London hire most of their ER 1st year analysts from their SA class.
Yes i did. I got to to go some assessment days even with important names (not that really mattered Since what i am interested in is the role) but eventually turned down. Fact is the number of incoming interns is low (which i knew) and probably it also weighted the fact that i had a not too important previous work experience (at least compared with some of the guys that were at the assessment day with me) [won't comment on education because we all had top grades from top universities].
Breaking into ER or AM from Non-target (Originally Posted: 11/02/2016)
Some background: I am coming from a very non-target, small private university wanting to break into ER or AM initially, and eventually move to HF. I enjoy researching, analyzing, and modeling companies; basically want to be a traditional "stock picker" trying to beat the market, so to speak. I have very little internship experience except for a semester at a non-profit consulting firm sponsored by my University and the state, and I'm currently interning at a small fund management/advisory firm (only 7 employees but 1bn+ AUM). I'm trying to think of ways to differentiate myself and stand out. Throughout the past couple semesters I took initiative and taught myself financial statement modeling and DCF analysis using Wall Street Prep and Udemy. I'm thinking of (and briefly started) creating my own financial statement model and DCF analysis to package with my resume. Do you think this initiative and genuine interest in the industry will really separate myself from other candidates given my non-target university and somewhat lack of internship experience. Of course I will be networking along with creating my model, but do you think it's worth the effort. Any help would be greatly appreciated.
You've got to focus on networking or transfer. There's no real way around it. I'm from another very non-target school, and I've been trying to network like crazy in order to get an IB SA offer. I've been focusing on a few select groups and banks, got a couple of cold-emailed/cold-called contacts to recommend me, and have landed interviews as a result. The advice I've heard over and over is that the best way to differentiate yourself is to have enough contacts at a firm that'll say, "Yeah, I've talked to him/her and he's cool, we should give him a first round."
I don't think building the model is as important, except for maybe teaching yourself the real details of a model outside of the interview guides. Plus, if your model isn't perfect, and anyone bothers to look at it when reviewing your application, they'll have something else to pick apart.
Chances of getting into ER? (Originally Posted: 11/16/2016)
Looking to potentially try to break into equity research. My background is:
1) bachelor in finance; 2) master in accounting 3) few years in audit; 4) another few years in Transaction Services / Financial and Commercial Due Diligence, currently a manager, in a big4; 5) ~1 year in Corporate M&A (very focused on valuation/modeling); 6) CPA; 7) CFA charterholder; 8) Significant international experience (if that matters).
What is everyone's opinion of my chances to "break in" and any suggestions on what I should focus on to further strengthen my profile? Any suggestions on banks I should target (small boutiques, mid-market, large or everything!?). I am not in NYC but in large metropolitan area.
Thanks in advance!
While I'm not everyone, I'd say you have a solid chance to break in. Based solely on the information provided, it appears you hit all the major requirements of doing sell-side associate monkey work (i.e. modelling, understanding accounting, etc.). The only things not directly touched on by your listed experiences are (1) a passion for the markets and (2) writing skills. The latter is fairly technical, so just get good at it. The former however is very much a real thing that you need to structure your story around. In the event you get an interview or even an informational interview, be ready to talk about why public markets and how everything you've done to date helps you in this respect. It also wouldn't hurt to have a few stocks you're ready to pitch even if it's just an informational interview (and this will be absolutely necessary if you get an actual interview)
Depends how much you make (I can hazard a guess because I also come from Big4), but you might actually be a bit 'expensive' for the much smaller shops. If you're willing to take a bit of a cut to break in though, then apply for everything would be my advice. Otherwise, I think you should have a decent chance of breaking into a mid market firm or even a bulge bracket to be honest.
Best of luck on your search!
Thanks for your quick reply.
You say you come from big4 as well. Are you currently in ER and if so do you mind sharing your background and how you made the transition?
Any recommendation on how to improve your technical writing?
If I apply, should I go for an entry level position or do you think I may be able to get in at a more experienced level (still associate of course)?
I had a far inferior background when I broke into ER (BB no less, though i've since moved to buyside ER). My situation isn't terribly applicable to most people's as I was at the right time, right place, and lady luck decided to smile on me at that exact moment.
Having said that, the fundamental reasons I broke in were that I had the raw skill set as demonstrated by a CPA, excellent writing samples (not stock write ups), high levels of comfort with Excel, and an extreme go-getter attitude. Normally, this would be woefully insufficient, but again, right time right place. In reflecting on my lucky break, the only other piece of advice that comes to mind is that you should not overestimate the competition. Yes, the world is filled with unbelievably talented people who are younger, cheaper, and probably better suited than you for any given role, but if you're willing to put in the leg work to network and demonstrate sincerity, I believe your time will come.
As for technical writing, just write up a few stock reports. If you can get your hands on a few initiation pieces, you'll see the nuts and bolts of how sell side analysts build up an investment thesis. The problem is that those pieces tend to be 20-100+ pages long (yes I've seen initiations that are over 100 pages) and you'll need to fit it in
This is great info. The only thing I would emphasize is showing great interest in the market by means of doing your own write-up/building model. If you haven't already start sending out emails now. Your background is solid and I've definitely seen associate positions on LinkedIn where they prefer 2+ years of experience in FO jobs (ie consulting, ER, ib, big4, etc.)
Your profile is competitive enough. You didn't mention the caliber of schools you attended. It would be a lot easier to break in, fair or not, if you went to a well regarded program for either BBA or MS.
As mentioned above, demonstrate an interest in markets, ideally by running either an actual or paper portfolio. At least follow a few stocks that you have high conviction on, either long or short. Also read investing books and attend local CFA society events and network.
Apply to everything but your chances are best at smaller shop. Cruise the CFA institute job board for opportunities. As I mentioned, your local CFA society might also have networking events which can be helpful at finding opportunities.
Equity Research - Plausible to get into ER? (Originally Posted: 09/05/2006)
Is it plausible to get into equity research as an undergrad? Is it no different than getting into other areas of I-banking and just less talked about because its smaller?
PLENTY of ugrads go straight into ER at the bulge-brackets, etc. Ever heard of Lucy Gao?
What are the possible exit options for someone in equity research?
It has been widely discussed that for IB, exit options are PE, HF, or just staying on in IB. What about exit options for equity research?
is equity research going downhill? are they hiring large number of people in junior researcher roles or has the hiring in these departments stopped?
sell side ER seems to be a dying industry. trading commissions are getting squeezed and more and more buyside firms are building up their own research teams. less money than IB
best soph year summer internship to land ER @ bb junior year? (Originally Posted: 06/05/2008)
I'm a >3.5 FordhamU in NYC for business. Obviously not a target school but has decent name recognition especially in NYC. I want to get into ER full time, preferably with a BB internship in ER after junior year that I can convert to FT. Currently this is my freshman year summer where I've been working on completing online DealMaven Certification Level 1 and relaxing due to some health problems from a recent accident. I won't be able most likely to intern during the school year because of necessary time obligations, so what is the best internship I can hope for after soph year to put me in a good position for a BB ER department after junior year??
During my sophomore summer I interned at an extremely reputable DJIA corporation in their financial services arm. Some of my peers in my SA class worked in PWM, ER at a smaller shop, accounting firms, one was in a software company and there was one guy who was a bartender during their sophomore summer. So there really is no set "best internship" out there to land a SA spot in ER.
Getting an ER job (Originally Posted: 09/03/2009)
Hey guys. Here's my situation. I'm really interested in working in ER. I'm a college senior about to graduate in December. There are no ER firms or positions at my school (from what I've seen in the past few years). Should I go ahead and cold call boutique investment banks and research companies for full time positions? I've searched my alumni network and I've reached those who work in ER but nothing. What else can I do?
I'm making it up as I go along.
Due to your lack of network and non-target status there is nothing much else you can do. I would interview with F500 as a back up.
How to Get an ER Intership at BB? (Originally Posted: 09/02/2010)
I am a junior at a target (top 10 school). However, all of the big banks that come to recruit at our school do so for only banking and trading. I am not too interested in that and find equity research much more interesting.
I don't want to simply apply for an ER internship on the company website.
Do you guys suggest any other ways I can apply for an ER internship? Should I try to contact alumni from my school who work in ER?
For those who have successfully gotten ER internships at BB's after their junior year, can you please share how you did it and any advice?
buyside or sellside er?
sellside er, as in ER at banks like Goldman, Morgan Stanley, JP Morgan, Citigroup, Barclays
Also interested in this, in addition to sellside MM/boutique firms internship practices. All deference to the OP of course.
I'm in research but work a lot with those guys. Typically, at least at ours, banks don't have research intern programs. I'm fairly certain GS does but don't quote me on that. However, I would say either work for IB or S&T the bank you'd like to do research for and parlay that into an ER job. Also a lot of asset managers have summer analysts.
If they come to your school just talk to hr and say your interested in ER. All BB have ER internship programs and I am sure if they come to your school for banking/s&t they recruit there for research as well. You may not have noticed it because ER intern programs are so small (mine was ~8 in ER and ~20 in research overall).
I interviewed for ER summer analyst gigs (I didn't get the gig which blew big time). Anyway, I got the interview (I came from a non-target) through a contact, so I would definitely recommend reaching out to an alumni network because they will be able to help you get an interview.
talk to HR, and network network network; I think buyside ER at my BB was 4 interns this year. don't know about the sellside guys
could someone clarify what buyside ER at a BB is? I just assumed that ER at a BB was automatically sell-side ER.
yeah I am curious too.
this happens at my target school too. At my school, all the BB recruited for research except UBS, MS (they have an intern program but just doesn't recruit at my school), BARCAP (they only had an intern program for credit research), DB, and Citi. The best thing to do is definitely talk to research or network with people in ST and ask if they have any contacts for research analysts since research works a lot with ST.
But yeah, research is not as big on recruiting because the turnover is not as high as IBD (most people will stay on past 2-3 years), and teams are also not as big (a typical industry team is around 3-4 people; for credit research it's even less with 2 people). Some companies like GS and JP only take 2-3 interns for the whole summer.
Anyways, good luck. and like mentioned before, if you really love research and still can't get in, do IBD in the industry you like and transfer to research after a couple of years. A lot of people in research come from IB backgrounds...
my bank does not have a formal ER program for undergrad, although they did take thee undergrads this year (but zero the prior year). i don't know how those kids got the jobs, but i think it was some type of special case type thing (ie. there's some kid who shows an exceptional amount of interest in the firm or possibly the relative of an employee).
there was also an intern who started in s&t and then moved into research after talking to the recruiter after his first rotation. he was the only one out of a humungous pool of s&t undergrad interns to do this though.
Getting in to ER (Originally Posted: 09/09/2010)
I am a current Junior at a top-ten target school and have recently decided that I would like to do ER out of undergrad. From what I hear, the culture and work will fit me better than S&T or IB. I feel I might be a little behind in the experience department, so I want to get started early with my internship search for next summer. Over the last two summers I have had an internship in real estate consulting focusing on PPP's and spent two months in London studying/partying/avoiding the real world. I know this really isn't much to work with, but I hope it won't put me too far behind as long as I can get something for this summer.
Any opinions on what I should do over the next six months or so to make me as employable as possible?
Also, I have spent quite a lot of time searching for an list of where I should be applying for ER out of undergrad and haven't been able to find one. Does anyone have some suggestions that might save me a little time? I don't personally care that much if it is BB, MM, boutique, etc. Or if there are other areas other than ER that might have a similar culture, I would be open to those as well. I really just want the experience and the chance to get something going. I can take care of the rest on my own.
Let me know if you want any more info about me that might help you give me some suggestions.
1 thing: CFA level 1--at least sign up. Everyone else applying will prob have that if not level II knocked out.
Schools have this nice scholarship that is easy to get too that makes it liek $500. All you need is a CFA teacher to sign a letter. After you get that, you can get schweser notes, the $999 package for $250. or the $499 package for like $125 or something.
Best Way to Network Into ER (Originally Posted: 01/27/2011)
I am a senior in the honors program at a non-target top 20 undergrad b-school who is looking to get his career started in equity research. I had interviews in the fall with a few buy-side shops such as AB and Fidelity but those didn't end up panning out for me. So I am exploring my options. I know I have missed the FT analyst cycle for most BB's but I believe it would be to my advantage to apply for internships to get my foot in the door.
What would be the best way to network with ER professionals at BB's? Should I cold-call or cold-email? I have a general idea of what I should say/ ask about but I don't want to come across as desperate. Alum network is limited in ER, I have reached out to those I could find but all of them are at boutiques and don't typically hire right out of undergrad. So any input would be greatly appreciated.
I would just type in: BB/ER networking in search. There is a wealth of info about networking on this site.
Ways to spin bakckground for ER (Originally Posted: 07/14/2011)
Hi all,
I was looking for some quick advice as to how to spin my background to make me an attractive candidate for equity research, buy or sell-side.
Some brief background: I currently work as a Credit Risk Analyst on MBS in Florida; however, my passion has always been equity research. I just sat for Level II CFA in June and was president of my college's student run equity fund in 2010 (graduated last May, passed level I senior year). The school I went to was a non-target in Arizona.
I see people posting on this forum about covering a sector they already have experience in. My question is, can I spin my MBS experience into financial services experience and reach out to Analysts in that sector? Does one need professional experience to get into ER? i.e. Can I get into oil and gas if I have no experience in oil and gas?
I dont care about the prestige or size of the firm I work for, or what sector I cover, or how many hours I work. I just want to learn, be challenged and pursue my passion for investing and research.
Thank all you monkeys in advance for your insight and advice.
PM
Best way to do it is to talk about experiences working as a lifeguard and responding to medical emergencies. (Sorry, couldn't resist the funny acronym in the title)
In all seriousness, there may be a place for you to go into something like portfolio research if you have a strong math background, which I assume you do since you probably needed it to work in risk management- especially on a very complicated derivative. You'd be looking at sharpe ratios, risk measures, both on the fixed income and equities side and doing some direct work with banks' institutional clients and portfolio managers. There's obviously an intellectual challenge there that would appeal to someone with an interest in equities, but it's not quite equity research. That said, you'd probably have some opportunities to transfer into equity research if some spots opened up. It's a tough job market in finance right now, but it's significantly less difficult to land a more quantitative job. That's where I'd be look.
I don't think you need to do anything to "spin" your background since it's pretty good for an entry-level sell side or buy side analyst role.
Just get aggressive looking for jobs and networking. Start with your local CFA society.
I mean I got an internship with a large buy side firm on a $10B+ fund and they have me covering 3 sectors (all related under a larger sector umbrella) when I had zero experience in the field or in the sectors. You just learn as you go.
I think it helps in some ways if you are technically proficient in the field (we have doctors and biomedical engineering PhDs on our healthcare teams and that seems useful in questioning firms - but we also have competent directors and MDs on the same teams with zero healthcare background).
You have credit analyst experience so you're already accustomed to researching a firm, even if from a different angle. The CFA society is a good idea, although every meeting I've ever been to is LOADED with ops guys and very few Portfolio Management-types (none of the CFAs at my firm who I speak to regularly ever go to them).
Just make sure, if you do land an interview, to have a stock pitch or two in your back pocket (with accompanying write up/report) and be prepared to have it ripped apart.
Thank you all for the responses. It seems being aggressive is the best advise one can give a job seeker in this industry.
Regarding this comment by NEIdiot: "Just make sure, if you do land an interview, to have a stock pitch or two in your back pocket (with accompanying write up/report) and be prepared to have it ripped apart."
I have always been interested in how people handle situations when their ideas get torn apart when networking or interviewing. I think we can all learn from others experiences in these situations. I think I will start a new thread on this topic.
Thanks again for all the good advise.
Thank you all for the responses. It seems being aggressive is the best advise one can give a job seeker in this industry.
Regarding this comment by NEIdiot: "Just make sure, if you do land an interview, to have a stock pitch or two in your back pocket (with accompanying write up/report) and be prepared to have it ripped apart."
I have always been interested in how people handle situations when their ideas get torn apart when networking or interviewing. I think we can all learn from others experiences in these situations. I think I will start a new thread on this topic.
Thanks again for all the good advise.
Landing ER (Originally Posted: 08/10/2011)
How difficult is it landing ER relative to IB? Can anybody comment on the number of positions available relative to IB? I am from Toronto by the way, but looking for US info as well!
Been answered a million times, its about the same
There are fewer applicants but that is offset by fewer positions. Most desks hire based on need so you won't see massive junior classes.
There is ER OCR at all the usual schools. Interviews are a little different from a technical standpoint than IB. The analyst classes are much smaller than IBD for BB, but there are also dedicated ER firms which have larger classes.
Some hires have F500 industry experience in the spaces they are covering i.e. semiconductors, industrials, etc. I've found that they typically make for the best analysts.
Non-Target Wanting to do ER, Help (Cliffs included!) (Originally Posted: 08/18/2011)
Sparknotes Version: 1. Go to non-target with finance major. Have decent GPA, weak ECs, no networking, and OK work experience. Want to get into ER, preferably in Asia 2. Plan on starting a valuation/market commentary blog and joining toastmasters/the investment group at my school to show interest. Potentially will start a club and study for CFA if I fail to get into investment group 3. Want to know if: -It's too late to do ECs or if owning up to the mistake + doing something about it can offset some of the bad. -How much majoring in fin vs a quanty subject will affect me
-If anyone can help me with my resume via PM (worried about friends IDing me and then blabbering about who I am in real life). If you can, please PM or post in this thread so I can PM you.
longer blah blah blah but more detailed version
Hi guys,
So basically, I'm at a non-target right now and I eventually want to break into Equity Research with the long term goal of either being the top researcher in the firm. The other potential route I'd explore is doing a value or long/short equity hedge fund and working in a research capacity there. I would also prefer to work in Asia, more specifically Singapore, Hong Kong, or India.
First things first though, I need to break in, which will not be an easy task from a non-target. Although I have a decent GPA (3.7+), I do NOT have a major in engineering/quanty subjects, which I have heard is a big deal in ER. Additionally, my ECs in college have been very weak (I was involved in HS though, in case that helps at all) and my work experience is not the greatest. To make matters worse, I'm about to be a senior and did not score an internship this summer.
But enough bitching about the past, let's focus on what I can change. I know my ECs are weak and this year, I hope to join the research club at my school (assuming I get in), get involved with Toastmasters or other speaking club (honestly, my social skills are a bit lacking), and I am going to start a value investing/market commentary blog and reading more value investing books. If I don't get into the research club I'll try and found a consulting group and study for the CFA.
My questions to you guys are: 1. Even though I screwed up by not getting involved earlier, can owning up to this and changing it this year mitigate things? 2. Will having a major in finance be too soft and put me at a disadvantage to engineering/math majors or can I still make it? 3. If I PM someone, can they help me with my resume and point out glaring weaknesses? I want to do it through PM because my friends stalk each other on WSO and I don't want them IDing me and then blabbering about who I am in real life. If you are interested in helping me review my resume, please send me a PM or post in this thread.
Thanks
Take CFA level 1 in December.
Where is your school? Can you get a part time internship during the school year? Literally anything finance related.
If you want to practice equity research, instead of doing a blog I think you should focus hard on 2 or 3 companies. Get sample reports from a friend with access (or your school library) and model reports off of that. They will probably be terrible but it will show some initiative and you will learn a lot. Don't choose widely held companies and don't talk about a company you researched in interviews if it may be covered by the people you are interviewing with.
Do you have any technical skills/can you learn any technical skills during your senior year? VBA may be useful. Others would need to chime in here for more suggestions.
Full disclaimer: I am not in ER and am simply regurgitating recommendations I have seen repeatedly on the internetz that seem reasonable to me.
P.S. If your "social skills are a bit lacking" this is probably your biggest impediment to getting any type of job. I don't know you personally but it sounds like maybe you need to branch out a bit more. It's your senior year of college- don't waste it by not partying like a rock star. Joining clubs and stuff like that will help you meet people, but it's up to you to get them to like you. Same thing goes for finding a job.
Take CFA level 1 in December.
^^^^
You will not get anywhere in ER from a non-target (or most of the time, target) w/o this. I was in a "research club" and while probably the best EC you can do, the CFA is waayyyy more important. You at least need to say you have signed up -- passing is a whole different story. BTW, there is a scholariship where the exam and study materials altogther will cost you CFA from your school to sign a paper and fax it in.
Need the link?
On top of that, taking the CFA really forces you to learn a lot of the material you will be using as an ER associate. Even if it didn't have an effect on your job, it would be a good idea to take it so that you're already getting into the swing of things and the mindset you need to be successful.
I'm a student, that's just the way I look at it.
Agree with above.
Also, I don't know where you heard you should have econ/quant background. For ER, finance/accounting background is usually king unless you are trying to join a more esoteric team (e.g., life science will typically want to see degree in that field).
And finance degree is probably your best major from a non-target, shows interest in the subject. However, you should take as many acct classes as possible.
youre a bum you bum
^Is this really necessary? This was a dead topic and you just randomly bump it to insult the OP (I'm guessing because he has non-target in the title). Idiotic posts like this is ruining this forum. I really hope that you're a troll or else I must say that you sir are a tool.
And finance degree is probably your best major from a non-target, shows interest in the subject. However, you should take as many acct classes as possible.
Get me hooked on ER (Originally Posted: 11/07/2011)
I am really interested in Equity Research and thought that some people in the industry could help me out on a couple of questions. I recognize that these are a shitload of questions, but if you could just answer one or two I would also be more than happy.
b) What are the chances of getting a FTO from the internship? How are the offer rates lately. Is ER holding up better than S&T? How much ppt is involved in the job?
b) How independently do you guys work? I am afraid that I would tend to put more sell ratings out there than acceptable.
b) What do you make as a top analyst?
b) How common is it for a good analyst at a top BB to make it to a hedge fund after 2-3 years?
Best banks How is the hierarchy in terms of banks. The GS broker reports I read were not that great or detailed. Are they the Nr. 1 and who is up next?
People What kind of people work in this industry?
ER vs. Management Consulting I could probably also get an internship at a MBB. But pay there is significantly lower and at least to me seems less interesting. Am I right that pay is better at ER and how do you see the tradeoff?
TLDR http://www.wallstreetoasis.com/search/apachesolr_search/Equity%20resear… http://www.wallstreetoasis.com/frequently-asked-questions#ERIS
Go read this book right now:
Exile on Wall Street: One Analyst's Fight to Save the Big Banks from Themselves
Mike Mayo is one of the best ER guys the street has ever seen. If you can get through his book and still want to work in ER, then it's definitely for you. It's a great read, but ER is a pretty thankless (if you do it right) or skeevy (if you do it wrong) line of work.
I actually followed your advice and just finished the book. It's a good read, although a lot of the good parts were covered in the recent WSJ front-page article. I can recommend the book to anybody inteested in the industry, especially the first part. The second part is a lot about the causes of the financial crisis, which we have heard before, but he offers his own take. Star ER analysts seem to be motherfuckin ballers! All the bank CEOs know Mike by name (though they fear him). And he is on all the major networks and newspapers. All Paulson wanted for his birthday is a conversation with Mike,... Do associates get ranked in these Ii rankings as well. How long do you have to be in the industry to get ranked?
On the general state of ER...
ER in general is getting hammered. Middle market firms are being forced to either close down or scale back coverage (Gleacher closed down their entire equity department this summer) and a lot of BB are cutting heads because the revenues for research just aren't there. In my opinion its always been more of a necessity to have research as a complement to other services such as IB, restructuring etc. which is a shame. It's not getting hit as hard as S&T but i would argue that under major banking divisions its certainly #2 or #3 in terms of on the chopping block.
I can help with question 2 and 6. The others I have a clue, but not the whole picture.
I really love my job. I just got home after working 15 hours and I am thinking of calling a cab and going back. I need to keep energy drinks at the office.
b) How independently do you guys work? I am afraid that I would tend to put more sell ratings out there than acceptable.
As an analyst, VERY independently. As an associate, totally depends on your analyst. From associates I have met though, pretty independently. You know what needs to get done, you do it, and your boss will give you extra projects to do as well.
Everyone has their quirks, but they are all cool and down to earth. Not as flashy as the Ibankers or traders for sure. Most people love it so they are happy. There is a nerdish social awkward side to most, but many transition to sales. A more logical less emotional bunch.
^^^ ehhhh sort of. ER is mostly based on soft dollar compensation. I would guess that lower and lower transaction fees over the past decade would play a larger part in diminishing head count
Edmundo, this is like saying to someone who wants to do trading despite watching Wall Street, that he missed the point. It just means that I found the industry quite fascinating. Mike Mayo clearly loves his job. Sure he got humiliated by Jamie, but Jamie later apologized. The CEO of Citi said in a conference call, that they regret not hiring him. He draws respects from a lot of CEOs. These guys fear him and the investors on the sell-side loved him.
Is it possible to break into ER with a business background ? (Originally Posted: 11/16/2011)
Hi primates ,
Just wanted to know if it was possible ? From what i've read , it appears to require some quantitative stuff ... Is it the case ? Is it all about companies or about capital markets ? Since some banks put Equity Research within S&T division , i'm really confused ..
Thanks a lot !
bookmarking, this should be good...
What? Business background...?
Can you transform your post into something coherent please?
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