what would be the reasons for people moving from buy-side to sell-side considering the opposite is the norm? imagine this were an interview question.
High demand, low supply, higher price.
Level I Econ.
work life balance messed up
level 1 life
No seriously i need some inputs here. I am working for a small cap hedge fund and will have a couple of interviews from some bulge bracket sell side in the coming days/weeks. I know roughly what to say but im just wondering what are the reasons people move to sell side from buy side. And if it’s actually a good idea at all. I have never experienced sell side first hand (so I am curious as well), only know the working hour is crazy, pay is high and you’ll be doing a lot of client-based servicings. But I also understand the sell side analysts also develop stronger expertise on a particular sector (i am a generalist in my fund) and the competitive and challenging environment may actually motivate you.
you are kidding right? that’s like saying “oh the stock is down because there are more sellers than buyers”. No.
The real reasons are: 1) made bad decisions on the buyside and got fired, or firm was dismantled 2) don’t want to take the investment risks anymore, as SS does not make/lose money 3) more money? maybe. but very rare to have an analyst on the buyside suddenly get recuited as a senior covering sell side analyst. once ppl go buyside,they tend to NOT want to go back
a well established sell side senior def makes more than a buyside guy of a few years at the top hedge funds (e.g. not PM level obv)
sell side isn’t a terrible job, even a relatively new senior analyst starts around 300k annually at a decent shop, and that’s without taking any buy/sell stock risks. after several years, it can go to 500k. which is again pretty awesome considering what you do.
Not in the least. Just taking OP at his word.
He said that everyone moves in the other direction. That suggests that:
- There are vacancies on the sell side
- There are few people who want to be on the sell side
The conclusion, therefore, is just Level I Econ.
I have no first-hand experience on either side; as I say, I was just taking OP at his word.
There are advantages to driving against the traffic.
I assume you mean AM vs ER.
Less stress, more soft skills, publish your work, less responsibility, more stable, better hours, more research, creativity, character.
sell side has better hours? really?
You’ve never worked in buyside or sellside have you
I’m in ER, besides earnings season, I don’t see how buyside has less hours. Especially PE.
ouch
Positives: better learning opportunities, sector specialization, writing skills, earning a name in industry, less stress and definitely more bank
Negatives: long working hours, convincing someone is a tough job
Have you ever thought of just telling them the reasons you applied in the first place? Seems strange to try to let us tell you why you are making the switch
i’m moving out because
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the hedge fund im working with is a small cap hedge fund, i would like to earn a name for myself by working for bigger funds or bulge bracket sell side,
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im deeply underpaid in the industry and
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i’m interested in sell side because i would like to experience working in it, since i have already got a good understanding of buy side but not really sell side, i also think sell side may be more challenging and stimulating as you will develop an expertise within a particular sector and talk to clients more frequently.
why are you saying that it’s less stress even though working hour is longer? in buy side you will need to convince your PM as well and it’s usually harder to sell idea to them…
also i dont think ER has better hours than buy side, at least in my fund, my working hour is actually pretty good…
In sell side, you are having to still convince the PMs either directly or through proxy, which adds another level of having to sell it
And your stuck with your sector, whether things are going well or not so well for it