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drs

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I've got a meeting set up next month with the Global Head of Equity Research for a major BB firm. We are acquainted through a mutual friend.

Here's my dillema. I currently work as an Investment Banking analyst at a small boutique here in NYC focusing on the small-cap sector. My major passion is picking stocks though - so either equity research or buy-side long/short HF, or Mutual fund.

What position would be best long term for my career? What are the pros and con's of each. But most of all, what should I talk to him about? Should I try to position myself for a job in Equity Research?

I feel like I have a golden opportunity!! I want to make the best of it!!

Thanks
 
<<Here's my dillema. I currently work as an Investment Banking analyst at a small boutique here in NYC focusing on the small-cap sector. My major passion is picking stocks though - so either equity research or buy-side long/short HF, or Mutual fund. >>

This is not a "dilemma." If your passion is in the equities market and not in banking, then you might consider making a move. That's the normal thing to do. People switch jobs all the time.

<<What position would be best long term for my career? What are the pros and con's of each. But most of all, what should I talk to him about? Should I try to position myself for a job in Equity Research? >>

Hedge funds, mutual funds and sell-side research are all very different...this is such a broad question. In addition, we know absolutely nothing about who you are, your qualifications, or your long term goals. Why don't you start by telling us specifically about what interests you about each field? (if you can't, then you are not ready to make a career switch.)

Also, if you were interviewing with the Global Head of Equity Research, isn't it obvious that you should position yourself for a job in Equity Research?

I guess I don't really understand the point of this post.



Edited 2 time(s). Last edit at Thursday, November 16, 2006 at 07:42PM by numi.
 
there are no absolute pros and cons...it's all relative to what you want to do. talk to him about exactly what you said...picking stocks. be able to provide evidence of this via a personal brokerage account, and try to approach the interview from a research analyst's perspective. good luck though...if you have a genuine interest and some degree of acumen in stock picking the interview should go well
 
I like banking right now because I get to talk with many CEO's and CFO's about their companies, and the money is great. What I like about banking is in my specific role, it is very people oriented. I am only a Level 1 candidate right now as I am only a few years out of undergrad.

Equity research is appealing because I would get the skills necessary to become marketable to a hedge fund or mutual fund. As I said, my main passion is picking stocks- being part of a team that picks stocks. So would it be a big advantage to move to sell-side research with the end goal of moving to a buy side shop picking stocks? Or am I better or staying in banking, and making contacts with the buy side shops that invest in our offerings?

So this really comes down to what is the best route to a job with a long/short HF or equity mutual fund - my current role in Banking or sell-side research?
 
If I recall correctly, you work for a pretty small bank doing private placements (though I could be thinking of someone else...this was a few months ago). Anyway, as far as client connections, you're not going to have visibility building networks with the major players, so the quality of networks probably won't be very deep at your current firm. Same thing can be said regarding the quality of training, deal flow, etc. Of course, I don't know exactly what firm you work at so I could be off the mark, but this is general advice I'd hand out to most people.

What are you expecting to make for base + bonus this year? Not knowing what your comp is (for now), I'm also willing to bet that you'd make more as a BB research associate than as an analyst at a small boutique bank.

If you were at bulge bracket bank doing IBD (like M&A, leveraged finance, structured products, or a leading industry group) then I would say you'd have a great shot at getting into a hedge fund anyway. However, circumstances being different, you'd probably be better off in terms of feeder opportunities if you get a position as a BB associate than where you are now.

Good luck.



Edited 1 time(s). Last edit at Thursday, November 16, 2006 at 08:20PM by numi.
 
I guessing this year, total comp should be around 90-100... Thanks for the advice Numi
 
Do you think a BB research associate would make more than that?
 
Yeah. a BB research associate could potentially make about 20-50% more than that total comp.
 
drs -- depends on your level of experience. If you are hired into research a couple years out of college, then yes, I would say that your comp as a BB research associate would be close to what you are making at your current role (especially because your banking comp is low compared with the major banks and most mid-market banks). It depends what bank you would be working for, but I would say that given that you're early in your career and don't have an MBA, your total comp could be anywhere from 5% lower than your expected range to 10% higher. Won't be much different because your skill set is still elementary.

However, you should be focusing a lot more on having experience at a BB firm early in your career...definitely pays dividends down the line. If you've seen any of my posts, you should already know what I think about BB's and my natural bias towards them as a place to start your career out of undergrad.

If you get an offer in research, you should definitely inquire about what the estimated bonus range was for last year's associates.
 
I am a sell side associate (pre-mba) at a BB.

I can tell you for sure that comp is above that range, even for a first year (atleast at my bank).
 
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Edited 1 time(s). Last edit at Friday, November 17, 2006 at 11:59AM by numi.
 
Numi, should I tell him I have a preference for certain sectors? Or should I say I am willing to do any?
 
If you have no real industry experience in a specific sector, I would not express a preference since you'll have a harder time expressing why you're good for a particular sector, and it'll leave your options a lot wider.

Most associates don't really have practicable experience in the sectors they join anyway, but they pick it up really quickly.
 
drs, feel free to indicate preference if you already know a lot or have experience in a particular sector. otherwise i agree with funnymoney for the most part...you've never been in research before so you probably won't have a compelling reason to pick one sector over another (unless you really think certain areas are boring)
 
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