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.
News Roundup – Vanderbilt Investment Advice, and More
Let’s take a look at some of the biggest stories from this week, including Vanderbilt investment advice, plus more.
When It Comes to Investing, Love at First Sight Doesn’t Always Pay Off – Vanderbilt University Owen School of Management News
Steven Posavac, E. Bronson Ingram Professor in Marketing, and Nicolas Bollen, Frank K. Houston Professor in Finance at Vanderbilt University’s Owen School of Business recently wrote an article on a common investment mistake—falling in love at first sight.
“Premature Infatuation and Commitment in Individual Investing Decisions” has been published in a recent issue of the Journal of Economic Psychology. Posavac remarked of the article, “We wanted to understand how internal factors such as top-of-mind awareness or external cues such as media attention can cause investors to become prematurely infatuated with a particular investment.”
The authors performed a series of studies which ultimately proved that individual bias is often a factor in decision making—not the overall soundness and profitability of the investment.
“We found that the infatuation effect persisted clearly across all three experiments, even when the salient option was worse than the others,” says Nick Bollen. “Surprisingly, the effect was even a little bit stronger for those who indicated that they understood how investments worked.”
For more on the authors and their research, read here.
Masters in Supply Chain Management Strengthens Navy Officer’s Expertise – Rutgers School of Business News
Elizabeth Boutin, a student in Rutgers Business School’s Master in Supply Chain Management, has taken her skills to new heights in the U.S. Navy.
Boutin has put her expertise to work at the Naval Nuclear Propulsion Program in Washington DC, where she budgets for the design, construction, and maintenance of nuclear reactors.
“It involves a lot of cost-estimating. You’re planning 50 years in advance, so you have to work backward … I’ve learned about ordering efficiently, reducing costs and shipping times, interacting with buyers, and tracking results,” Boutin explains in a recent interview, all of which are skills for which her RBS program has laid the groundwork.
The online version of the program has allowed Boutin to continue work with the Navy while completing her studies on time.
Read here for more on Boutin and the online Masters in Supply Chain Management at Rutgers.
Professor David Yermack’s Joint Research on Cryptocurrency’s Impact on Monetary Policy is Featured – NYU Stern News
Along with colleagues from NYU Law and McGill University, Professor of Finance and Business Transformation David Yermack of NYU Stern recently published a paper entitled “How Do Private Digital Currencies Affect Government Policy?”
Yermack and his coauthors argue that the mere existence of cryptocurrencies such as Bitcoin have a positive effect on government policy, despite the fact that their use is not yest widespread. Diversification, local investment, and tax revenue generation are three of the main benefits of employing crypto, the authors argue.
By providing an alternative to centralized banking, citizens are given more options for growing wealth, which is especially important in recovering economies like those of Argentina and Turkey.
Read here for more on Yermack and his research.
Guest Lecturer and Business Leader Dispels Culture Myths – London Business School News
London Business School visiting lecturer Kirsty Bashforth, author of Culture Shift: A Practical Guide to Managing Organizational Culture, has spoken extensively on creating and maintaining positive business culture.
She recently shared some wisdom on her experience in how the vague notion of ‘culture’ can actually make or break a business.
“I had a growing awareness of the importance of culture [early in my career] … I became increasingly aware that an intentional focus on culture as part of that is business critical,” she says.
Bashforth is founder of culture advisory agency Quay Five, but she began her career in a vastly different role—as a trader on the floor of global oil company BP. After BP’s tragic Deepwater Horizon disaster in 2010, the company tasked her with rebuilding the company from the inside out.
For more on Bashforth, Quay Five, and her upcoming book, read here.
Gain Insights From Top Leaders Into Their Successful Business Strategies – W.P. Carey News and Events
The W. P. Carey School of Business will host the 35th Annual Economic Club of Phoenix speaker series, beginning September 27, 2019.
It will feature senior executives from such companies as Petsmart, Adidas, and the Carlisle Company, along with leading academics from Harvard and Carey.
The lunch sessions will run 11:30 a.m. to 1:30 p.m. with the exception of December’s session, which is scheduled to run from 11:15 a.m. to 1:15 p.m. Tickets for nonmembers are $85, and funds in excess will support scholarships and research at Carey.
Read here for more on the event, and also for registration information.
Top MBA Recruiters: Fidelity Investments
When deciding to earn an MBA, you may have a lot of expectations. Whether you are more excited to build a professional network, gain industry-specific training, or develop leadership skills that can take your career to the next level, MBAs can certainly all agree on one thing they hope to get from their program: a job.
MBA graduates can feel more confident entering the job market knowing that top companies throughout the world are looking to recruit talent like them. To help find the perfect fit, MBAs might consider looking at employment reports from their school and other MBA programs around the world. This can help reveal some of the top companies in the country that are actively looking to recruit MBA talent to join the company.
One familiar company is Fidelity Investments, a multinational financial services with its headquarters in Boston, Massachusetts. Fidelity consistently makes the list of companies hiring MBA grads from some of the best business schools in the country, such as MIT’s Sloan School of Management. Originally founded in 1946, Fidelity today is the fourth largest asset manager in the world, with $2.4 trillion in assets.
Knowing that, how can you find Fidelity jobs that are right for you?
What is a Fidelity Career Like for MBAs?
Fidelity’s slogan is ‘blaze your own trail’, which probably explains why ambitious MBAs fit in well at the company. The company offers a number of ways for MBA grads to do so, whether through internships or full-time development programs. Whether graduates are interested technology, finance, investment, or business strategy, there are a variety of Fidelity jobs open for MBAs and MBA graduates.
Fidelity not only encourages their employees to blaze their “own trail,” but aims to create the perfect environment in which to do so. MBAs might be pleased to know the company has been recognized among the “50 Happiest Companies” by Career Bliss in 2018, and in 2017 it was recognized by the National Business Group on Health as one of the “Best Employers for Healthy Lifestyles,” and a “Best of the Best” by the National Business Inclusion Consortium.
Among the other benefits of working in a diverse and happy workplace like Fidelity, the average salary for employees with an MBA degree is $89,271, according to Payscale data. This can vary depending on the specific career path of each MBA, the highest being MBAs in Global Business Management, who make an average salary of $93,000 per year.
Several of the most prominent business schools in the country offer valuable Global Business Management MBA degree. Of which, include:
- The McDonough School of Business at Georgetown University
- The Fox School of Business at Temple University
- The Foster School of Business at the University of Washington (EMBA)
Starting the Fidelity Jobs Search
Fidelity demonstrates a commitment to hiring MBAs through an active recruitment program. The program includes Coffee Chats and Campus Presentations at business schools throughout the country. These visits give current students the chance to meet those currently doing the work that MBAs would likely do at the company, including Research Analysts, Directors of Research, and Portfolio Managers.
MBAs starting at Fidelity typically have two main career paths they will follow. Some may develop into a Portfolio Manager. Others may become a Career Sector Analyst. First round interviews typically occur on-campus, but special arrangements are made for students not on Fidelity’s campus recruitment schedule.
At Fidelity International, the company’s international investment subsidiary, there are additional opportunities for current MBAs to join the company as summer interns. The Equity Research Analyst Summer Internship is an 8-12 week global internship with opportunities in the UK, Hong Kong, Australia, Japan, Korea, Singapore, India, and China.
What Does Fidelity Look For in MBA Candidates?
When hiring MBAs for internships and development programs, Fidelity may have different needs and requirements for applicants depending on the specific field and career they seek. Hard skills tailored to your field of interest are necessary, however. Fidelity also looks for candidates with important soft skills like initiative, ambition, the ability to think independently, and keep cool under pressure.
Interested students can begin searching for Fidelity jobs on the official company website. Applicants should keep in mind the different opportunities available for those currently in an MBA program, near completion, and post-graduation.
Financial Times Reveals Top Finance MBAs for 2017
The business end of business school has become a great cause of concern, particularly since the bubble burst in ‘08. MBAs need to be more technically adept and more comprehensively schooled to remain competitive in the financial services industry. As is the case with any major investment, the question is always how to get the most bang for one’s buck from whatever opportunity’s in play.
The Best San Diego Finance MBA Programs
The finance industry has always gone hand-in-hand in the MBA. Even as MBAs are becoming increasingly popular in other industries, finance is still the biggest MBA job sector and accounts for 22 percent of all MBA jobs, according to the 2014/15 QS TopMBA.com Jobs and Salary Trends Report.
The San Diego Metro is yet another business school destination chock full of MBA programs with finance concentrations. Here are a few of the top San Diego finance MBA programs: Continue reading…
Georgetown Advances to Venture Capital Investment Competition Finals
The Georgetown Venture Capital Investment Competition (VCIC) team won the South Region VCIC in Houston on Friday, Feb. 10. This win advances the McDonough School of Business team to the competition’s Global Finals in April. Continue reading…
