“Our research team works extremely closely with the investment team,
and is central to the decision-making process” Jim Gerber, AllianceBernstein
they have to stick their necks out from to write. Personally, if I hire someone, I would start off with a honeymoon
time to time. “You can’t be a buy-side period before making the position permanent, to see how the person operates in
analyst and make hold recommendations terms of deadlines, and how they operate when they make a mistake. Everyone
all the time,” explains Jonathan Evans, makes mistakes, and if their response is to bluff their way through it, then that’s
ASIP, partner at family offi ce the Hanseatic a bad sign, especially when you’re dealing with large sums of money,” explains
Group, and head of research. Hilary Till, founder of Premia Capital, the Chicago-based CTA.
Stéphane Monier, CFA, global head of Analysts can choose to focus on a variety of diff erent asset classes or sectors
fi xed income and currencies at Fortis across the industry. But one thing is clear. Expectations are rising, and more is
Investments, agrees. “In the past the being demanded of them. On the sell-side, research analysts have had to
buy-side copied the sell-side research re-think their value propositions, and demonstrate better due diligence
model. We created large pools of analysts, transparency. Issues of transparency will inevitably aff ect the buy-side as well.
all applied by sectors. Th en we put them Analysts need to be able to justify, and, in some cases, defend the decisions
in a central pool and they would write very they make. Th ey will have to be adaptable as the investment industry changes
nice studies that probably did not get read and evolves, as greater regulation comes which will inevitably aff ect their
much by the portfolio managers. Th is businesses, and as more and more information is thrown at them.
model is failing, it has clearly not worked.” “You have to be able to throw out the noise,” said one head of research.
He also thinks analysts have to be Considering how noisy the investment industry is becoming, that is a
taken out of their comfort zone. “You challenge indeed.
Cg
have to have the ability to make a
decision when you’re 51% convinced;
when you’re not 100% sure of what
JANE SOMERVILLE
you’re doing but you have a gut feeling.
Title: Investment Analyst/Trainee Fund
Formerly analysts didn’t need this,
Manager – Asia Japan Desk
because they were publishing nice 100
Current employer:
page glossy reports. Th ey didn’t have to Standard Life Investments
stick their necks out or put their money Previous employers:
where their mouth was. Analysts now
Bloomberg
need to be able to deal with ambiguity,
University: University of Edinburgh;
rather than pure facts.”
University of Sheffi eld; University of
Stirling
Degrees: Masters in Economic History;
COMMON APPROACH
Masters in Advanced Japanese Studies;
Arun Muralidhar, chairman of Mcube
Masters in Investment Analysis –
Investment Technologies, believes that
recipient of the Karen Napier
Scholarship
the way analysts should approach research
Professional qualifi cations:
remains the same, regardless of the asset
CFA Level III candidate; IMC
class they are involved with. “Whether its
stocks or bonds, or dollars or yen, you
What attracted you to this career path?
have to start off with a basic hypothesis.
I developed an interest in the stock market when I was young and
You gather the data, and determine when
was an avid reader of The Economist and the Financial Times early
you do what the implications are. Th en
on. The job is intellectually challenging. I enjoy picking apart
you test your model. Th e process is the
analysts’ fi nancial models and questioning the assumptions behind
same across all asset classes, whether you
forecasts. It is also immensely rewarding being able to meet with
are buying or when you are selling.”
senior management of some of the world’s largest companies.
Another thing that remains the same is
the necessity for strong communication
What are the major challenges you face in your position?
skills in the role. “You need to be very
Combining work and studying for a professional qualifi cation can
numerate, and you need to have an ability
48
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