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starleague

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Hi all,

Was wondering what was it like when you started and how things work at your firm (I'm in sell-side research/working at a local investment bank in South East Asia).

The environment is great so far (6 months). Do you guys spend alot of time looking at your spreadsheets/models (30%).

Was looking to get some further insight into how your research runs. Thanks in advance guys. Its a great forum here! cheers
 
....I would also like to add a question to the post: For those analysts---sell or buy. How long did it take to move to an associate position?
 
Why would someone want to move to an Associate Position if one is already an Analyst? Associate is an entry level position.


Zforce12000 Wrote:
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> ....I would also like to add a question to the
> post: For those analysts---sell or buy. How
> long did it take to move to an associate position?
 
Obelix: it goes analyst - associate - VP - MD in investment banks. You meant analyst who is a researcher, he may easily be a VP, it is not his official title, analyst is just a way it is described in press. You can even understand it by looking at graduate programs: analyst for BA, associate for MBA.
 
I agree with you but my reply was related with equity research (original poster). In sell Side equity research, associates are entry level. Analysts are almost equivalent to VP.

What you are saying is investment banking hierarcy not research hierarchy. In equity research Analyst>Research Associate> Research Assistant. In most case, associate & assitant are same so it is entry level.

Time gap may be huge, may be around 5-7yrs. to be an analyst havin own coverage in a particular industry.


Luchano Wrote:
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> Obelix: it goes analyst - associate - VP - MD in
> investment banks. You meant analyst who is a
> researcher, he may easily be a VP, it is not his
> official title, analyst is just a way it is
> described in press. You can even understand it by
> looking at graduate programs: analyst for BA,
> associate for MBA.
 
thanks obelix--would the time gap shorten if you have both an MBA and CFA, or not really?
 
I have a disclaimer to state. I am not working as an analyst or associate and even I am looking for an opportunity to get into. So, I would personally refrain from commenting on your question. I would request others who are working as researcher to help us out here.

Zforce12000 Wrote:
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> thanks obelix--would the time gap shorten if you
> have both an MBA and CFA, or not really?
 
obelix - yeah, now it is clearer since I remember one interview in Fidelity for the "Research Associate" position who was supposed to help analysts. In the job spec, they stated - Whilst there may be an opportunity to become an analyst over time, there should be no assumption that this role will automatically lead to the offer of an analyst position.

In IB it is vice versa.

The person whom I talked to was a Senior Research Analyst, Head of Research. May be it is equal to a director in the IB system.

They did not take me since they thought I would be less suitable to sell research to external fund managers. I have never supposed that such a role includes an element of sales.
 
Hrm, back to the original question -

How does your sell-side research firm run? I'm currently a junior analyst looking to get more insight how your respective firm runs. I.e. Are the analysts very accounting focused? Is industry experience a must? Hours?

Things in South East Asia work very differently from Europe and N. America.
 
Average 12 hours per day, occasional weekend, reporting season 15+ hours per day. For a junior role accounting knowledge is important. The higher up you are the less you deal with actual financial statements and the models. Industry experience is not a must but recommended; if you don't have the experience you will likely work for a 'less important' analyst (ie, small cap/special situations) or take longer to move up.
 
At the sell-side firm I worked at we had associates who had worked there 4-5 years with a MBA who had yet to even approach the associate anlayst level. Most of the associate anlayst had been associates for anywhere between 3-7 years and had MBA and CFAs. Associate analysts had their own coverage but all over their work was subject to the review and edit of a senior analyst who name went on the reports ahead of the associate analysts even though they literally did almost no work on the names and rarely spoke to clients about the names.

The truth is tyring to go the associate to analyst role in a big sell-side shop is incredibly difficult. Partly because people still remember 5-7 years later back to when you were a no nothing associate. Also, with the contraction of a lot of sell-side research there has been a move to hire analysts with at least 5 but more likely 10 years experience as an ANALYST covering the same names.

IMO the smart route is do a tour of 1-2 years as an associate at a big firm (hopefully with a good and well respected anlayst). During that time complete your CFA. Then you can either make the jump to the buyside as an analyst (Buyside guys like to hire ER guys from BB firms but they usually like you to have your CFA). You also can go the route I went and go to a botique sell-side firm and likely get an analyst role with your own coverage. Yet another route is to go back to school and get a quality MBA and then you can maybe get a job as an associate anlyst at a BB sell-side firm or an associate position at a IB or analyst position at a hedge fund, mutual fund, PE firm ect.

I was fortune enough to do my ER associate tour in 1 year with a well respected analyst and finish the level 3 at the same time. If I ever meet someone and they question my credibility I can simply name drop the fact I was an associate for this analyst and I get instant credibility even more so than I get from having the CFA or showing someone my research or performance record.

But I would STRONGLY advise against trying to go the associate to analyst role at the same firm. Your career will get weight down in mud and so will your salary. My salary and bonus double my first year out of my associate role and within 2 years had quadrupled.
 
great post RA.

questions... 1 year as an ER associate was enough for you to get a role as lead analyst at a smaller shop? (im sure lvl 3 helped).

and do people really go to do their MBAs only to come back to SS research slightly higher up on the ladder? MBAs w/ out prev research experience come in as associates, so it just seems weird for someone who is already an associate to go back to b-school. but i guess if i was guaranteed coverage as an associate analyst upon returning it might make it worth it.
 
Well there is a shortage of SS analyst in SE Asia, esp in Hong Kong and Singapore where the hedge funds and PE is taking off.

Just out of B-school and I'm at a research assistant at a smaller local investment bank (covering one small cap and one mid cap stock) while assisting other senior analysts.

It is indeed surprising how SS runs in Asia vs. Europe & N. America - I really love it despite the extremely long hours. The learning curve is indeed extremely steep.

I'm abit worried about results season though, I can see why most SS firms should not take in fresh graduates (accounting issues, industry experience, way too many ideals, writing and technical skills are all at zero). Not to mention all corporates will not take you seriously...

Definitely not looking forward to results season though...oh yeah - be prepared to meet some Gecko's along way too!

May I ask how much quants do you use at your firm and how much quant stuff do you use?
 
starleague, what do you mean by how much quants does your firm use?

i don't consider modeling "quant"... and that's the bulk of what associates do here.
 
stylemog Wrote:
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> and do people really go to do their MBAs only to
> come back to SS research slightly higher up on the
> ladder?

They do now. A few years ago they wouldn't and I'm sure there are some people who might be able to parlay b-school into a straight up analyst role but it will all depend on your previous work experience and connections.

1 year was enough for me but again I had buy-side experience a MBA, and finished the level 3 during that year. When I took the job it was agreed that it would only be a 1 year thing. I would say at the firm I worked for 40% of associates left after 1 year, 80% after 2 years, and 95% after 3 years. Anyone who stayed longer than 3 years either didn't have much upside potential or had just enjoyed their job and current living situation (i.e. they had a family ect.). Women associates seem to be more likely to stay in the role especially if they get married or have a kid because they don't like uprooting them but younger men who are more mobile tend to jump ship sooner.
 
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