Your Critique Appreciated - Equity Research Application Strategy

<p>For years I have been aspiring towards equity research, not in it for the money but the opportunity to become fully diversified in business analysis skills, intellectually challenged and immersed in market events from my standpoint of speciality. </p>

<p>I recently completed my Masters degree in Finance at Tulane University and previously my BA in Business Management degree from a mid tier school in the United Kingdom (I'm American though). My grad school GPA is mediocre, standing at a 3.4. I have 2 non-banking internships and have generally been very active in student societies etc. I am going to sit my level one CFA in June which I should invetably pass as the sample exams were a walk in the park. </p>

<p>I'm very young (only 21) and have had significant trouble landing a position in equity research this summer (big surprise huh?). Consequentially I am contemplating an offer from Morgan Stanley as a Financial Analyst in Derivatives which ultimately reports to operations. </p>

<p>So my question is do I stand a good chance at applying to an entry level equity research position whilst working in a completely unrelated field? Will they look down at my career choice or appreciate the fact that I've been tried and tested by a renowned institution? Will the CFA help?</p>

<p>Your comments are much appreciated, the more objective the better.</p>

<p>Kind Regards,</p>

<p>Another Schmuk Trying to Beat the Street</p>

<p>"Another Schmuk Trying to Beat the Street"</p>

<p>Sorry, but it probably won't happen. Bad timing on top of other things.</p>

<p>what is your rationale besides bad timing? And your background would also be helpful as it would substantiate your response</p>

<p>if i'm not mistaken, wildflower works for a PE fund. is that correct?</p>

<p>Yeah; M&A IB before that. </p>

<p>To the OP:</p>

<p>It's just bad timing (I would hope you've been following the markets and, inevitably, the crisis). The very few jobs that may be available are going to go to target kids (primarily Harvard/Wharton) being recruited through the internship pipeline. </p>

<p>That said, if you have an offer, by all means hold on to it. Good luck.</p>

<p>Ps. A self-deprecating attitude won't get you far as a junior-level staff. Maybe as an MD, but not quite yet.</p>

<p>Equity research is an area where it is very tough to get a position, perhaps even harder than investment banking. There are fewer positions in ER and there is no structured exits like IB where a lot of people leave after 2 years thus creating some vacancies. People can stay forever in ER if they are competent and there are movements laterally between buy side, sell side and portfolio managements but the entry positions are often filled through MBA recruitment.</p>

<p>Passing the CFA can help but there are tons of people who passed all 3 levels and yet cannot find employment because they have no experience. I caution you not to take a cavalier attitude about the CFA exams as this year's passing rate for level I is only 35%.</p>

<p>Your opportunity of breaking into ER may be within MS after a few years. Do a lot of networking and try to transfer into areas where you can acquire some skill sets important to achieve your goals.</p>

<p>"there is no structured exits like IB where a lot of people leave after 2 years thus creating some vacancies."</p>

<p>That said, quite a few ER people tried and got positions with PE shops and hedge funds during the market boom. </p>

<p>"Your opportunity of breaking into ER may be within MS after a few years. Do a lot of networking and try to transfer into areas where you can acquire some skill sets important to achieve your goals."</p>

<p>True. A word of caution, however: moving from within can sometimes even be harder than getting the job in the first place. If you're good, your team won't want to lose you; if you suck, no one will take you (no one will recommend you, either). And once people associate you with a specific role, it may be hard to break their perception ... and, as much as I hate to repeat this: perception is reality.</p>

<p>For ER they look at kids who have done extremely well in grad programs. The skill set necessary will most likely be found in a highly organized, buttoned down critical thinker, the type that gets a very high GPA. To be frank, given the current market, I just can't see a mediocre GPA from Tulane translating into a job. The exception would be if you had demonstrated depth of knowledge in a key industry.</p>