What are skills set required by Equity Research roles?

[angelina]

I've known many journalists for years. None have a clue about these kinds of things, even a financial journalist I know that is an ex-Goldman Sachs analyst but who is the biggest dope in history.

Of course, if you have a genuine interest in ER and great public speaking skills that's a different matter, and I wouldn't waste time with MFE as it would make it look like you're some time waster that is better suited to a pure quant or risk role.

thanks! this is very helpful!

 

[BenKal]

Assuming sell-side...

When I was in risk management working for a top tier bank I was interested in Equity Research and spoke to over 20 members of the team. Eventually I had to take two internal tests to qualify for the role. I also interviewed extensively at another large bank and had a similar experience.

Education: MFE is not the right fit for ER. Most managers I spoke with were not even familiar with the MFE degree. There will be virtually 0 overlap in skillset.

Required Skills:
1) Soft-skills - You will be on the phone with hedge funds all day. You will be emailing your own feedback/analysis/presentations to clients.
2) Accounting - Understanding the 3 main accounting sheets and how they tie together. This was one of the two tests I had to take. It is far more advanced than accounting 101 though; so be prepared. WallStreetPrep course on this was insufficient.
3) Writing skills - This was test #2. You need to write recommendations on stocks long-hand. Also, when your predications turn out incorrect, you will need to pen explanations on why that occurred.

That is it! As you can see, virtually no overlap with MFE.

Just to close out:

Pay: On par with S&T
Hours: In between S&T and Investment Banking

All in all I think ER is an excellent career choice but the barriers to entry are very high.

HI MRoss,

What would you say prepared you for the accounting test?

 

[WishfulApplicant]

I think you're going to need to give more background info. Do you want to apply to ER from a different country, same country? what's your current work exp?