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Investment Professionals: Job Opportunities and Client Expectations

Explore the various job opportunities in the investment industry and understand the preferences of sell-side and buy-side clients. Discover what it takes to succeed as a sell-side analyst and how to get paid for your research. Learn about the life of a sell-side analyst and get interview advice to help you land your dream job.

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Investment Professionals: Job Opportunities and Client Expectations

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  1. Types of Investment Professionals(What Are The Different Job Opportunities?) • Sell Side Firm (Creates And Sells Proprietary/Primary Research) • Clients are institutional investors (Hedge fund, Mutual funds, Pension funds) • What are the different job opportunities? • Research • Sales • Trading • Investment Banking • Corporate Finance • Compliance • Back office/Other

  2. Types of Investment Professionals(What Are The Different Job Opportunities?) • Buy Side Firm (Buys And Uses Primary Research To Manage Investments) • Research analyst clients are internal PM, Private/High net worth managers, and Brokers • Portfolio manager clients are usually individual investors in mutual funds, corporate accounts or high net worth individuals • What are the different job opportunities? • Research • Trading • Portfolio Manager • Sales • Compliance • Back office/Other

  3. Who Are Your Clients As A Sell Side Analyst?(What Are They Like?) • Mutual Funds (Pain In Butt On Payment And Feedback) • Concerned about consultants, compliance, etc. • Long only • Closet indexers • Must own something • Herd mentality • Slow investment process with multiple committees • Pension Funds (Limited Dealings With) • Liability matching • Asset allocation • Hedge Funds (Quick Feedback And Payment Or Termination) • How do I make money, period • Timeframe • Types

  4. What Do Clients Want From Sell Side Research? (What Will Get You Paid?) • Highly Valued • Independent survey/research • Independent thought • Unique company or industry insights • Access to management/ Industry conferences • Knowledge of individual companies and industries • Responsive to clients needs • Medium Value • Specific investment idea • Quality of earnings estimates • Low Value • Sales Coverage • Portfolio Advice • Ratings/Stock opinion • Valuation

  5. Skill Sets Of A Sell Side Analyst(What Do I Need To Be Able To Do To Succeed?) • Quantitative (Bernstein) • Financial • Accounting • Technical • Qualitative (Alethia) • Ability to change on the fly (My first meeting) • Detective (Mosaic Theory) • Problem Solving • Time Management • Presentation/Marketing • Industry Knowledge • Personable • Psych

  6. What Is The Life Of A Sell Side Analyst Like (It Revolves Around Earnings Season) • 30 -50% Travel/Client Calls • On the road 8+ days a month • Comes in bunches • Research travel • Customer meetings • 20-40% Writing/Models • Maintenance research (Useless! Everyone does it. No one pays for it) • Initiation reports (What gets you in the door) • Actionable research • 20-40% Research (What You Get Paid For) • Actionable research (Find a Change) • Stock Picking (Why ratings are garbage) • Modeling • Valuation • 10-20% Management, Compliance, etc.

  7. How Do You Succeed As A Sell Side analyst(You Must Add Value) • Be Right On Your Research • 50% is considered good • Be Early/First With Your Research • Have 100’s of people calling on them • Only pay top 3 (60% to 1st, 30% to 2nd, 10% to rest) • Be Actionable And Make Them Money Based On Your Research • Find confirm Success/Failure with strategic roadmap or strategic initiatives • Independent Thought - Staying Away From The Herd And Group Think • Presenting the contra case.  • Taking a stand/being accountable • Things to remember at clients • They can’t trail for long. People will pull money • Outside influences (issue with Ivy league fund and Enron) • They are swamped with research • A large percentage of them are inexperienced

  8. How Do You Get Paid?(Both The Company And The Individual) • Sell Side • Firm • Research • Sales • Trading • Buy Side • Research • Portfolio manager • Sales • Trading

  9. Why Do Clients Pay Me? • Information based on fundamental research • Find the change to with strategic roadmap or strategic initiatives • Customer, Competitor and end market surveys • Contacts in industry • Why is this important?

  10. How Did You Get Involved In This Field (High Risk. High Reward) • Sell Side • Wall Street • Regional • Non traditional • Buy Side • Research • Trading • Portfolio management

  11. Interview Advice(What You Need To Do At A Minimum) • Know something about the company you are interviewing with • Show that you can add value. • Show that you can think on your feet. • Show that you can solve problems. • Convince me that I want to work with you in a high stress, high pressure situation for an extended period of time. • Don’t lie (especially on something I can check on)

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