Buy side stock coverage depth

[kh.asif]

I have read in many places that buy side analysts are expected to cover around 30-40 stocks. The question I have is regarding the depth of the coverage. Obviously, you cannot cover 30-40 stocks very closely (with as much dedication as a sell side analyst does). Would love to hear some views from buy siders as well as anybody who has knowledge on this subject.

 

[MustardAndFries]

I have worked on the buy-side (at a Canadian pension fund) and can say that most analysts were covering around 20 companies each.

 

[MustardAndFries]

To answer your question about depth -
I found that the buy-side analysts spend far less time developing complex financial models, and usually stick to simplified models, but create value through alot of experience and industry knowledge developed through time on the sell side.

 

[kh.asif]

Thanks for your answer. This is helpful.