I got accepted into my b school investment management class. We manage a $2m MCB fund. We get to select an industry of interest to cover. Since I’ve never worked in ER or the like, I’m curious as to which industries AFers feel would be worthwhile, cool, etc. I’m leaning on financials since that is a ‘tough’ industry as reported by the current fund managers. I feel if mistakes are to be made, make them in this class versus the job after this class.
QuantJock_MBA Wrote: ------------------------------------------------------- > I got accepted into my b school investment > management class. We manage a $2m MCB fund. > > We get to select an industry of interest to cover. > Since I’ve never worked in ER or the like, I’m > curious as to which industries AFers feel would be > worthwhile, cool, etc. I’m leaning on financials > since that is a ‘tough’ industry as reported by > the current fund managers. I feel if mistakes are > to be made, make them in this class versus the job > after this class. I did something like that in undergrad at my school. My sector was basic materials & capital goods, which in retrospect I would have chosen something like energy or health care. Basic materials & capital goods had so much overlap with other sectors it was nice working with analysts covering other sectors, but difficult to focus on companies other than conglomerates. Either way, it is a great way to work on your research skills as well as communication since you will probably be doing presentations and buy/sell recommendations to the group. Good luck.
This is kind of lame but: Do whatever sector interests you the most. You will probably have to speak about your research in job interviews. I think your enthusiasm will shine thru during interviews or mock pitches if you really enjoy the subject matter.
In my IM seminar I covered consumer staples (Walmart, Kraft, and another). It was really boring. This was spring 2008, so while everyone else had industries that were losing money, ours stayed almost equal. If you have a hobby, go with that industry. I would have done tech stuff. Overall the experience was something I talked about on interviews and was a great experience. Make sure you can stomach reading about their business structures for a few months.
joemontana Wrote: ------------------------------------------------------- > This is kind of lame but: > > Do whatever sector interests you the most. You > will probably have to speak about your research in > job interviews. I think your enthusiasm will > shine thru during interviews or mock pitches if > you really enjoy the subject matter. Thanks Joe. Overall I’m looking for a great experience. I would enjoy the challenge of any industry, and financials intrigue me. I was warned that financials cause the most distress in the class, which leads me to want to take on the challenge since now is the time for mistakes.
adult entertainment
You should probably look over this, which gives a basic overview of valuing a financial institution: http://www.bvappraisersconference.net/userfiles/files/Website_Conference_Papers/Valuing_Financial_Institutions.pdf
Pick the industry in which you feel you have the most edge. If nothing stands out, go with what you like.
BValGuy Wrote: ------------------------------------------------------- > adult entertainment Sin stocks in general.
higgmond Wrote: ------------------------------------------------------- > BValGuy Wrote: > -------------------------------------------------- > ----- > > adult entertainment > > > Sin stocks in general. The IPS forbids sin stocks…sigh…
Technology/Gaming. If not that then Hotels/Leisure. I think part of my “coverage” would be based on my first person experience at the establishments.
Hey dude, congrats on getting into the fund. I’m sure you’ll learn a lot about ER regardless of the industry you choose. If I were you, I would choose an industry I had a sincere interest in as other people have noted. Too bad they forbid sin stocks. I’d love to see the look on the prof’s face after a line like “With the recent additon of Peter North as head of the booty division, the executive management team has the industry experience to take Doggie-Style Industries to the next level”
Thanks DC. They are very strict on sin stocks. ANF was a holding at one point, but later deemed a sin stock and sold. Financials is my industry of interest, I should give that a shot.
Thanks DC. They are very strict on sin stocks. ANF was a holding at one point, but later deemed a sin stock and sold. Financials is my industry of interest, I should give that a shot.
QJ, have you ever heard of the Vice fund? Ticker: VICEX http://www.usamutuals.com/vicefund/abt.aspx It’s pretty awesome.
Only problem with bank stocks is that most of the analysis covers areas that is pretty unrelated to most other industries. Read a bank research report and then read one for say Wal-Mart or even a mining company - the bank reports are way more complex and pretty damn boring. Another thing to think about is this, if the future is all about a world with less emphasis on financial services, then getting into bank sector research will suffer too. The hottest demand I’ve seen is for resource analysts, but of course it’s fairly cyclical. IMO financial sector research is just too quantitative - immediate snooze-fest once I start reading an in-depth research report. Energy or tech may be more interesting.
1st choice: Pharma, TMT, energy 2nd: financials, healthcare 3rd: consumer goods and services I currently focus on financials
Banks considering my work experience. I’d also be interested in airlines, hardline retailers, and technology (hardware firms such as NVDA and AMD).
newsuper Wrote: ------------------------------------------------------- > Only problem with bank stocks is that most of the > analysis covers areas that is pretty unrelated to > most other industries. > > Read a bank research report and then read one for > say Wal-Mart or even a mining company - the bank > reports are way more complex and pretty damn > boring. > > Another thing to think about is this, if the > future is all about a world with less emphasis on > financial services, then getting into bank sector > research will suffer too. > > The hottest demand I’ve seen is for resource > analysts, but of course it’s fairly cyclical. > > IMO financial sector research is just too > quantitative - immediate snooze-fest once I start > reading an in-depth research report. > > Energy or tech may be more interesting. Thanks for this. I was under the impression that if you could cover financials, you could cover anything. Many say it is the most challenging industry.
TMT. Have always had a natural interest in that stuff, so its the obvious choice.