Day in the Life of an Equity Researcher

As a retail investor, I wanted to get more insight into what a day in the life looks like in a professional setting. Here are my notes from my research.

Objective

  • Combination of technical, fundamental, quantitative analysis to support a strategy with an objective to outperform the market

Responsibilities

  • Sourcing: responsible for building and maintaining a pipeline of opportunities
  • Investment Analysis / Underwriting: Summary “one pager” of companies, analysis at various prices
  • Portfolio company monitoring: a) type of transaction; b) size and life-cycle of the investment; c) management teams’ capabilities; and d) financial and operational performance

Typical Day

  • 8am: Check for breaking news
  • 8:30am: Morning meeting
  • 8:45am: Check emails
  • 9am: Early morning trading
  • 10am: Discussion with clients
  • 10:30am: Management meeting
  • 12:30pm: Meeting with analyst
  • 2pm: Research
  • 4pm: Market Close
  • 5pm: Conference call

5 Types of Investment Jobs:

  1. Investment Banking: Focus on raising capital for companies
  2. Investment Analyst: Analyze data, track trends, research companies and formulate opinions to help drive decisions for others
  3. Trader: Those who are actively buying and selling securities
  4. Financial Advisor: Client facing to help individuals invest and covers other things like retirement, mortgages. Helps clients stay invested.
  5. Portfolio Manager: Managers a set of securities or equities. Decision maker of an investment firm.

Other Notes

  • Work about 7:30am to 7:30pm, earning season extends to 10pm
  • Start from sell side to buy side (sell side is to analyze companies to promote for brokers, buy side is to buy good companies)
  • Buy side is more performance driven
  • Sell side is to analyze a set of companies, or a particular industry
  • Equity research reports: Equity researchers conduct thorough analysis and research of companies and their share price to issue investment recommendations.
  • Education of the opportunity of the industry, company and how to invest in it