Hi AF Community, I’m trying to learn more about potential careers in the investment/financial services industry, and I wanted to learn more about equity research. I currently work for a mid-size Investment Brokerage firm (in a non-research position) in MA, graduated from Boston College with a degree in Finance in 2008, and am registered for Level I this June. Aside from the obvious, what are some of the day-to-day responsibilities of an entry-level equity research analyst? What is a typical career progression of someone in Equity Research? Thanks for your help, K
The diary entry below represents a typical day for an associate biotechnology equity analyst on the traditional sell-side, whether you are working for a bulge-bracket investment bank or a mid-tier boutique. What I hope you gain from reading it is an appreciation for the responsibilities you will have, the interesting discussions that will take place, as well as the realities that you will experience on the job. The benefits (salary, lunches at fine restaurants, etc) may sound nice, but it requires you to make life adjustments that may make the career choice not an ideal one for you. 5:00AM: Snooze alarm clock once again…no time for a run today…too exhausted need more sleep, since I was at the office until 11:00PM working on a research note on Company X going out this morning. 5:15AM: Alarm clock sounds again…(I think to myself) Do I get up???..yeah, better get going need to prep for the morning meeting. The morning meeting is where analysts discuss the morning note with the sales and trading teams. 5:20AM: Finally get out of bed…shower…dress…and get ready for the day. 6:00AM: Out the door…off to the subway…the morning commute. 6:30AM: Make it to the office…put my bag down…start my computer and check for any morning news…Yes, nothing major reported…now I focus on the morning meeting…need to make hard copies of the report for distribution at the morning meeting…reread the note and prepare for possible questions from sales and trading. 7:00AM: Check again for any breaking news. Nothing…YES!!! Companies usually report news either before the markets open (9:30AM) or when the markets close (4:00PM). 7:30AM: Morning meeting…Pass out hard copies of the note on Company X…Boss (Senior Biotechnology Analyst) introduces the note, relays its significance and fields questions from the sales and trading teams. 8:00AM: Morning meeting is over…but before heading back to my desk to begin the day, I make a quick dash downstairs to Starbucks to grab a coffee and some breakfast (will need a Venti today…still feeling the effects of only 5 hours of sleep). 8:15AM: Back at my desk…check for news again…nothing…check email for any additional questions from research note published today…nothing…guess note was clearly written and understandable. 8:20AM: Check calendar for any meetings…Meeting with top management of small-cap biotech Company Y at 11:00AM…Lunch with analyst of hedge fund at 12:30PM…Conference call with lung cancer specialist at 3:00PM to discuss recent clinical trial results. 9:00AM: Call from California sales person who had one quick question with the morning note…question answered. 9:30AM: Markets open…check early morning trading…Company X trading up…our note must have been well received. 10:00AM: Phone starts ringing…clients are interested in discussing our note on Company X… questions answered. 10:30AM: Prep for management meeting. 11:00AM: Company Y management meeting…interesting developmental stage company with a product in Phase 2 development for Glioblastoma multiforme…make note to self need to build market model for Gliobastoma multiforme. 12:30AM: Meet with analyst from hedge fund at restaurant…ah lunch at La Cirque…should be good…discussions ensue…I eat only a portion of my grilled salmon with pumpkin risotto because I spend the whole time talking…what a waste…off to the office 2:00 PM: Search the web for information of Glioblastoma multiforme…download a few articles to read tonight. 2:45 PM: Put some questions together for the lung cancer specialist. 3:00 PM: Call doc…have a great conversation regarding the current treatments for small cell lung cancer…discuss a few of the recent clinical trial results on new products in the pipeline for both small cell and non-small cell lung cancer. 4:00 PM: Markets close down 2.0%…all stocks were hit…now the wait begins…will there be an announcement from one of my sectors companies??? I wait as I review my notes from the doc call…need to put together a summary for my boss… 4:20 PM: Looking good no news yet….maybe I’ll get to go out with my buddies tonight 4:40 PM: Start putting my bag together…OH @#$%^&!!! (I’ll leave out the profanity)…Company ABC has halted their Phase III trial…conference call at 5PM…ughhh…no mention of whether it is positive or negative news…gonna be a long night… 4:45 PM: Call my buddies to let them know it’ll have to be another time… Remember, this account represents a typical, though long, day in the life of an associate analyst (the entry level position). An average work week might be 55 to 70 hours, with a half day in on the weekend. As you move up the ladder to Analyst and Senior Analyst, the stress and responsibilities may increase but as you build a strong team and have more years of experience under your belt, managing the work-life balance become easier and you’ll be able to pursue outside interests again.
http://webuser.bus.umich.edu/Organizations/FinanceClub/resources/Equity_Research_Ins_Outs.ppt#268,12,Equity Research – Typical Career Path Try that PP.
I did some entry-level stuff during an internship. It seemed like you spend most of the time reading 10Ks and 10Qs, taking note of important numbers, and updating spreadsheet models. Most of the time, nothing special happens in the earnings reports so you don’t change the recommendation. If something materially affects certain important ratios, an analyst (or sometimes associate) might decide to revise the rating. Sometimes, you listen in to earnings calls, though the information can normally be found in the reports as well. It’s relatively labor-intensive because they need people to read all the reports. Some people like it a lot. I found it to be tedious - but then again, I’m a very lazy person. Also, I only did this for a few months, so someone with more experience might be able to provide you with more useful info.
Working in SS Equity Research is hands down the worst job in finance; the hours and work-life balance are horrific and you are easily replaceable as most view your skill set as a cost ctr Really think twice before going into SS Equity Research - i know many ppl that regret making that move
heres what I posted in the level 1 forum a typical day I usually wake up and eat breakfast, three fried-egg sandwiches with cheese, lettuce, tomatoes, fried onions and mayonnaise, omelette – containing five eggs, bowl of grits, three slices of French toast, with powdered sugar on top, three chocolate chip pancakes., and two cups of coffee. Right after breakfast I usually partake in a triathlon with a 4 mile sprint, 2 mile swim and 10 miles for bike. I immediately take a full CFAI mock exam afterwards usually scoring 99.5% - 100%. Then for lunch I have a pound of enriched pasta, two large ham and cheese sandwiches on white bread with mayo, and 3-4 can of energy drinks. After lunch, I will go compete in a iron man competition usually finishing 1st or 2nd place. I will do strong man competition sometimes, pulling a three car train, pushing an 19 wheeler, lifting a big ball of cement etc. After that, I fully recite ethics and quant entirely by memory which includes the complete t and z tables. For dinner I will eat another two pounds of enriched pasta, a whole pizza, and 3-4 more cans of energy drinks. After dinner I will wrestle a bear into submission beat a gang of local criminals with my pinkie then have sex with a dozen beautiful models until I fall asleep
cfagoal2 Wrote: ------------------------------------------------------- > heres what I posted in the level 1 forum a typical > day > > I usually wake up and eat breakfast, three > fried-egg sandwiches with cheese, lettuce, > tomatoes, fried onions and mayonnaise, omelette – > containing five eggs, bowl of grits, three slices > of French toast, with powdered sugar on top, three > chocolate chip pancakes., and two cups of coffee. > Right after breakfast I usually partake in a > triathlon with a 4 mile sprint, 2 mile swim and 10 > miles for bike. I immediately take a full CFAI > mock exam afterwards usually scoring 99.5% - 100%. > > > Then for lunch I have a pound of enriched pasta, > two large ham and cheese sandwiches on white bread > with mayo, and 3-4 can of energy drinks. After > lunch, I will go compete in a iron man competition > usually finishing 1st or 2nd place. I will do > strong man competition sometimes, pulling a three > car train, pushing an 19 wheeler, lifting a big > ball of cement etc. > After that, I fully recite ethics and quant > entirely by memory which includes the complete t > and z tables. > > For dinner I will eat another two pounds of > enriched pasta, a whole pizza, and 3-4 more cans > of energy drinks. After dinner I will wrestle a > bear into submission beat a gang of local > criminals with my pinkie then have sex with a > dozen beautiful models until I fall asleep Sleep is for the weak, no wonder you sometimes get less than 100% and finish 2nd. What a loser.
I tried the Michael Phelps diet for one day just to see what it was like. I had to get my stomach pumped at the hospital that night. You win Michael Phelps, you win.
TheAliMan Wrote: ------------------------------------------------------- > I tried the Michael Phelps diet for one day just > to see what it was like. I had to get my stomach > pumped at the hospital that night. You win Michael > Phelps, you win. You also have to swim for like 6 hours that day in order to burn those 10K calories.
TheAliMan Wrote: ------------------------------------------------------- > I tried the Michael Phelps diet for one day just > to see what it was like. I had to get my stomach > pumped at the hospital that night. You win Michael > Phelps, you win. Did you smoke a bowl to work up the appetite?
SS research hours are worse than SS sales and BS research but nowhere near as bad as IB. SS research analysts have to be in early for the R&S statements that some sadist decided should be released at 7am. If I were you, I’d aim for a BS research role. A lot more satisfying than SS in my opinion. On BS, you make money by making the best investment decisions for your funds. On the SS, money comes from commissions and payments for research. You are not actively involved in making investment decisions yourself.
I think general consensus is; the closer you are to the movement of money, the more money you make.
I disagree with the view that IB is worse than SS research. Yes, if the deal is closing tomorrow - sure, long hours to get everything together BUT overall the 7am-10pm SS research gig is all the time; typical IB hours are 8-7 - you only close so many deals in a year so literally we’re talking about 20 days worth of craziness versus everyday horrible hours in SS research
I should add however that if you are doing pitchbook IB then yes your hours are horrible and Carson has a point
^ So that is VP/MD level. Analyst/Associate is pitchbook/modeling. You’re just a monkey.
“7am-10pm SS research gig is all the time” Really? Even for old people?
“7am-10pm SS research gig is all the time” BS. It was more like 7-7.
IB also pays much, much more than ER.
Hello Mister Walrus Wrote: ------------------------------------------------------- > IB also pays much, much more than ER. not per hour
Seems like there a lot of opinions out there, and understandably so – obviously not all jobs/careers even within the same industry are appropriate for all people. That said, thank you all for your insights, both positive and negative. Just out of curiosity - nuppal, dmnyc, and cfagoal2: What are your job titles, and do you like what you do? Have you ever been in ER, whether it is SS or BS? Thanks, K