Seems like a lot of people on this forum are interested in Equity (mostly) and Fixed Income Research and not a lot of talk about Investment Manager Research (i.e. being an Investment Analyst for Pension funds, Endowments etc). While this path might not be as ‘Sexy’ as individual security analysis, its a way to get into the industry and has the potential to open doors to Hedge Funds (FoF ofcourse), PE Firms and buy side shops (e.g Fidelity Strategic Advisers)… Just wondering what everyone’s thoughts are on IM research vs. Individual security analysis?
OP- I’ve looked at the path very, very hard. While the day-to-day work seems similar, it seems that in the field, the two are not viewed as comparable. I think it’s largely because with FoF research, you’re doing a lot of qualitative analysis and portfolio management and you really aren’t expected to be looking at balance sheets, income statements, and industry comparables, etc. Perhaps it’s possible to make the switch, but the best advice I recieved from a small fund manager was: "If you want to work in securities analysis, find a company that will put you to work ANALYZING SECURITIES or on a lower rung of the ladder that will eventually put you in a job where you’re ANALYZING SECURITIES. "If you want to work at a hospital as a surgeon, do not take the following jobs: -Cleaning the operating room floor -Secretary at the desk in the E.R. -parking valet for the current resident surgeon “While jobs like these *seem* like they’re close enough that maybe you could make the leap, remember that every time you take a job that’s not-quite-your-eventual-goal, you’re getting experience doing the thing you don’t want to do, and eating up precious time that you could use trying to find a company that might give you a shot hiring you for what you *do* want to do.” This is INCREDIBLY DEPRESSING ADVICE to someone like me (or you) trying to make a switch, but I took it to heart. There have been a few interviews or even job offers that would put me in the wrong career path; it takes a lot of self control to be able to hold these offers at arms length, evaluate them objectively, and then say, “Thank you, but that’s not quite the direction I am looking to move in.” That said, if you’re out of work and starving, then you need to adjust your standards accordingly. FoF research might be a great gig, and there is always the chance that you could parlay it into equity/fixed income research down the line.
Good response Supersadface. The thing is the Investment Management world is changing… Years back, Equity Research was ALL the rage…then fundamental fixed income research started becoming sexy… Note: this was back in the days when capital availabe to invest was millions vs. trillions today. I guess I’m questioning the value of equity research in an efficient market (arguably strong form efficient [thanks Raj] market). Its relatively easy to go from equity research to FoF research but going the other way around is quite daunting…
If you think the markets are strong form efficient you have no business being in equity research. If you think the markets are semi-strong form efficient you have no business being in equity research. ER analysts do what they do because they truly believe they can exploit an edge. You have to believe it with every fiber of your being.
@SSF, I beg to differ. I am working in Corporate Finance and we have hired folks from Private Equity to manage treasury, senior bankers to do Fund Raising, a Portfolio Manager to do Investor Relations and some folks who were in Audit who do Mergers and Acquisitions. Perhaps you are right that a Heart Specialist can’t treat kidneys, however, that is Medical science. In Finance, that does not seem to be the case. My advise is, get a job, keep getting experience and keep applying. Keep talking to the people under whom you’d like to work. They will notice your perseverance and will give you a call once a suitable opportunity arises. Meanwhile, keep adding the letters after your name.
anupamjain008 Wrote: ------------------------------------------------------- > @SSF, > > I beg to differ. I am working in Corporate Finance > and we have hired folks from Private Equity to > manage treasury, senior bankers to do Fund > Raising, a Portfolio Manager to do Investor > Relations and some folks who were in Audit who do > Mergers and Acquisitions. > > Perhaps you are right that a Heart Specialist > can’t treat kidneys, however, that is Medical > science. In Finance, that does not seem to be the > case. > > My advise is, get a job, keep getting experience > and keep applying. Keep talking to the people > under whom you’d like to work. They will notice > your perseverance and will give you a call once a > suitable opportunity arises. Meanwhile, keep > adding the letters after your name. Great advice 