Buy Side Equity Analyst job............................?
I asked this a while back but couldn't get a decent answer.
Could you please give me a step-by-step overview of what a equity buy side analyst does?
1. Meet the sell-side analysts
2. Ask them what to buy
3. Copy their reports
- Barry789Lv 49 years agoFavorite Answer
You've described one type of buy analyst, the one who is just providing cover for the PM who wants to do something and needs a paper trail to cover his read.
A good buy-side analyst, however, provides the PM and the investment committee with independent investment ideas. A really good analyst will work closely with the PM to formulate an investment program and monitor the results.
I've had all sorts of analysts working for me, some good, some bad. The best ones were the ones who could take the investment guidelines as given and formulate ideas within the strictures imposed on us. These people would frequently come up with surprising things, things that no one else was pushing.
The worst would just take what the Street was saying and never subject it to independent appraisal.
The buy analyst will track an industry within a sector. He will be responsible for keeping abreast of the stocks in the portfolio -- "Every stock that will hurt you is already in your portfolio" -- in terms of earnings projections, actual earnings, business prospects, competition. He will also have a list of companies that are rising in his estimation, ones that could challenge the current holding.
He will also review the asset allocation and act as an advocate for his industry in investment meetings. The really good ones will not hesitate to recommend a reduction in portfolio weighting for their industry, the idiots will push for greater allocation regardless of what the real prospects are.
He will also monitor the national and international conditions for his industry and make recommendations accordingly.
He will also participate in the portfolio review process. Each portfolio will be reviewed periodically for performance and adherence to guidelines and whether the guidelines are still appropriate or should be changed.
He may participate iin client meetings and in new business presentations.
There may be some things I've forgotten; it's been a long time since I did this stuff. This will get you started.
- schnecklothLv 43 years ago
relies upon on the enterprise. in many situations doing study on particularly some companies. think ofyou've have been given to look on the conventional, financial, political, and industry components as a manner to recommend securities to commerce. perhaps financial diagnosis, due diligence, container study. Scanning company filings, financial modeling, and different such issues. additionally, speaking to the investors family departments of public companies and being a liaison with sell part analysts. it rather is an entire myriad of issues as a manner to verify the main suitable issues to commerce. Ask the enterprise you're employing to to tell you what they anticipate. lots of buzzwords.