Looking to Transition into Sell-Side Equity Research
I’m currently seeking to pivot from my investment services/tech role at a major asset manager into sell-side equity research. I graduated less than a year ago from a semi-target school with a degree in Economics and finance, and I’ve come to realize that this isn’t the direction I want to pursue.
Here’s my game plan:
- Network Actively: I’m planning to connect with professionals in the field.
- Conduct Independent Research: I’ve been writing stock research reports in my spare time. I’ve been working part-time as an analyst for a former buy-side portfolio manager, so I believe my reports are well-informed.
- CFA Level 1 Preparation: I’m set to take the CFA Level 1 exam in May, and I plan to start studying for Level 2 immediately if I pass.
I’d appreciate any additional advice or suggestions you might have! I’m aware that this industry is challenging, but I’m dedicated to pursuing my ultimate goal of breaking into the buy-side. I also recognize that this may lead to pursuing an MBA and earning my CFA.
One more note: I’m based in Boston, which is more of a buy-side hub than sell-side. Do major investment banks have significant equity research operations here? I’m open to relocating to NYC if necessary.
Thanks for your help!
One response
Your plan already has a solid foundation, and it’s good to see your commitment and proactive approach. Here are some additional considerations and tips that might help you in your journey to breaking into sell-side equity research:
Tailor Your Networking: When networking, be specific about your goals and interests. Identify professionals in the equity research field and reach out with a personalized message explaining your background, your passion for research, and your interest in their work. Informational interviews can be very valuable.
Leverage LinkedIn and Alumni Networks: Utilize LinkedIn to connect with alumni from your university who are in equity research or related fields. Alumni can provide insights and may be more inclined to help fellow graduates.
Enhance Your Skills: While your analysis and reports are essential, consider developing technical skills that are valuable for equity research, such as proficiency in Excel, financial modeling, and valuation techniques. Being well-versed in these areas will make you more attractive to potential employers.
Consider Internships: Even if they’ve been out of the traditional route, short-term internships or contract roles at smaller investment firms, boutiques, or even within the asset management division of your current employer could provide relevant experience and make you more competitive.
Stay Informed: Keep up with market trends, major news affecting sectors, and specific companies you’re interested in. Being able to discuss timely topics during networking meetings can set you apart.
Explore Remote Opportunities: While Boston may have limited large investment banks with sell-side ER, many firms are open to remote or hybrid roles. Keep an eye out for positions that may allow you to work from Boston while being part of a team based elsewhere.
Get Involved in Research Competitions: Participate in investment competitions or stock pitch contests; they can serve as a great way to showcase your research skills and connect with industry professionals.
Consider a Mentor: Finding a mentor in equity research can provide you with guidance, feedback on your reports, and introductions to others in the field.
Prepare for Technical Interviews: If you secure interviews, be ready to demonstrate your analytical thinking and technical competency. Brush up on common valuation techniques and be prepared to analyze a stock during the interview.
Relocation as a Strategy: If you are willing to relocate, consider looking at opportunities in NYC, as it is the major hub for sell-side research. You might also explore other cities with a strong presence in finance.
Your perseverance and strategic planning are key assets for breaking into equity research. Good luck with your journey!