MBA Job Profile: Equity Research Analyst
Many MBA students interested in a finance career think of working in corporate finance, commercial banking, financial planning, or investment banking. Rarely do they consider the more mathematically-inclined, analytical options. However, a career in equity research can be a top career choice for many finance students. It’s a valid career option for someone who is less interested in sales and communication and more interested in research, analysis, and strategy.
So, what exactly is an equity research analyst?
An equity research analyst helps analyze stocks so that portfolio managers can make better-informed investment decisions. They research companies, look at share prices, and issue recommendations on investments and M&A deals. Sometimes considered the un-glamorous and lower-paid cousin to investment banking, equity researchers are great problem solvers tasked with developing screening tools and investment models to help manage portfolios.
To be a great equity research analyst, you’ll need to be able to:
- Identify patterns in the marketplace.
- Interpret data to understand and predict a security’s behavioral outlook.
- Quantitatively analyze a stock’s statistical data compared to recent market activity.
- Create algorithms that identify stock investment opportunities.
- Understand the differences between international markets to cross-compare domestic and foreign stocks.
Equity research analysts begin their careers with a lot of financial modeling and analysis of a specific sector or group of companies. There is typically limited buy-side client interaction or interaction with top management. However, over time, your responsibilities will evolve to more report writing and formulating investment opinions and theses.
Equity Research Analyst Work/Life Balance
While an equity research analyst works long hours—typically 12-hour days—that’s nothing compared to investment banking. You may have busy seasons and times, but for the most part, your job will be relatively calm and offer some work-life balance.
Equity Research Analyst Career Advancement
However, the equity research analyst career path is less defined. You’ll generally start as an analyst for a few years before moving up to senior analyst, vice president, and then director of research. But that can be a slow process because you’re not considered as essential to the bottom line as the firm’s investment bankers.
Equity Research Analyst Salary Expectations
According to Payscale, the average equity research analyst salary is $77,901 a year with a $19,851 bonus. However, the actual range is between $53K and $143K with the largest and most prominent firms offering the highest salaries. Glassdoor’s average base salary is closer to $94,383 with analysts at J.P. Morgan earning $101,327 and Goldman Sachs analysts earning $99,699.
The majority of equity research analyst jobs are located in major metropolitan areas such as New York City, Chicago, Boston, and San Francisco, which means cost-of-living should be considered. You’ll find the highest-paid positions at private equity firms and other large financial services institutions.
Getting Started
At the minimum, you’ll need a bachelor’s degree to become an equity researcher and typically start out as an associate. Even then, a bachelor’s degree is typically not enough to get you a job at a top investment firm. Instead, you’ll need either a CFA designation or an MBA.
The CFA is mandatory for security analysis and can be earned more quickly and cheaply than an MBA. However, with an MBA you’re more likely to have the professional network you need to earn a position at a top investment firm.
Top MBA Programs for the Job
Since a career as an equity research analyst is closely linked to investment banking, the top MBA programs are fairly similar. A few solid MBA program choices include:
NYU Stern
NYU Stern is a top school for a career in investment banking and equity research. The banking specialization covers risk management and other related topics with classes such as credit risk, valuation, and risk management in financial institutions. There is also a quantitative finance specialization specifically for more mathematically-inclined finance careers. You’ll learn stochastic processes, statistics, and applied economics.
Columbia Business School
At the Columbia Business School, the Investment Banking Club provides an opportunity to learn investment banking and recruiting, helping students develop strong relationships in the industry. There is also a specific Equity Research Club, which is designed to educate, inform, and bring together Columbia MBA students interested in this career field.
University of Chicago Booth
The Investment Banking Group at Chicago Booth is equipped to help MBA students learn about the investment banking industry. The goal is to guide students to landing a successful career at an investment bank. There’s also an Analytical Finance concentration designed for students interested in risk management, equity research, and more. Classes include Advanced Investments and Advanced Models of Option Pricing and Credit Risk.
New Atlanta Jobs Highlight Start of New Year
Atlanta is a city whose growth has been on an upward trajectory for some time now. Since it hosted the 1996 Olympics, Atlanta has become a major business and cultural hub in the American Southeast, becoming a destination for both creatively and business-minded folks. This week’s posting offers just a selection of many opportunities available to MBA graduates.
Continue reading…Where Should I Work? Bain or Boston Consulting Group
When it comes to the consulting industry, there are three top dogs: McKinsey, Bain, and Boston Consulting Group (BCG). These three elite firms offer a unique blend of prestige, expertise, and history, which make them highly sought-after employers, particularly for MBA grads. But since they’re all part of the same exclusive club, how do you know where to accept a job offer: Bain or BCG or McKinsey?
Continue reading…UVA Students Share MBA Application Advice
Current MBA students are one of the best resources for learning what it takes to get accepted into your target business school. They are recent applicants themselves and, therefore, know what it takes to stand out in the process.
At UVA Darden, rising Second Year students shared a blog filled with MBA application advice for full-time MBA applicants. Here’s what they had to say.
Apply Early
According to Allie Medack, the last thing you should do is wait until the last minute to start the application process. She found business school applications to be highly introspective, and so felt that she needed time to reflect on her experiences and who she was as a multi-dimensional person. “Your genuine excitement will catch the Admissions Committee’s attention and help you shine through the pack.”
Reflect on Your Story
“Let [your story] shine and recognize that it’s all new to anyone who doesn’t know you,” says Max Linden. He believes that every applicant already has many defining moments that to use to demonstrate character, so take advantage of that.
For Christina Wong-Namura that meant not being afraid to dig deep. “For me, I made sure that my highest and lowest points were transparent on my application—and I tried to make my personality shine through despite the word limit.”
Link Yourself to the Program
The question of “Why this school” and “Why me” are intertwined. You can’t explain one without the other, according to Bingjing “Krystal” Yao. You have to talk about your future career in terms of how this particular MBA program will help you. Look at your passions and contributions in terms of how they’ll impact the business school community.
“For me, I made sure that my highest and lowest points were transparent on my application—and I tried to make my personality shine through despite the word limit.”
Ask for Help
You don’t have to go through the application process by yourself. Jordan Hart advises to ask for help, get diverse perspectives, and talk to anyone you can. “There are many people who would be happy to help you as you take this exciting next step in your life—let them,” he says.
At the same time, you still need to make sure that you are self-aware and honest with yourself. While advice is good, be true to who you are and follow your own instincts.
Frame Your Narrative
A well-framed narrative is critical to differentiating yourself from every other applicant. That means it’s vital to showcase your unique experiences based on your early life, education, and career. “Consider of how these experiences play a role in your resolve to apply for an MBA program and to then transition to a successful business role after graduation,” explains Clement Le Royer.
More MBA Application Advice from Students
Five more UVA Darden MBA students offered advice in the original blog. Here’s just a quick overview.
- Connect with friends and family during your application process, says Chloe Stegeman.
- Craft a personal positioning or brand statement, advises Pierce Lee.
- Don’t obsess over online forums. Instead, focus on running your own race, recommends Temi Adekanbi.
- Take time to step away from your essays after you write them to gauge the clarity of your response, says Teresa “Tess” Engebretson.
- Choose an MBA program where you are celebrated, not just tolerated, says AJ Amankwaa.
This article has been edited and republished with permissions from its original source, Clear Admit.
What Do You Do If You Can’t Afford an MBA?
An MBA is expensive. There’s no doubt about it. So, how do you afford one?
According to U.S. News & World Report, the average cost of an two year, full-time MBA from one of the top business schools in the U.S. is over $130,000. That number doesn’t include the cost of boarding and books ($40,000), peripheral expenditures ($20,000), and the cost of lost income ($120,000). Altogether, your total opportunity cost could come to around $300,000 for a two-year MBA.
If that number sounds astronomical, you’re not alone. While earning an MBA can advance your career path and greatly enhance your future earnings, few people feel blasé about the upfront cost. However, with a little bit of research, insight, and know-how, paying for your MBA doesn’t have to be out of your reach.
If you’re a prospective MBA student worried that you can’t afford an MBA, here are a few ideas to help you pay.
MIT Sloan Experts Talk Business in 2019
What can you expect from the business world in 2019? Professors and lecturers from MIT Sloan discuss seven businesses to keep an eye on in the New Year. Here’s what they had to say.
