Starting as an associate position, particular, industry, learning, history

gjcxc

Looking to make the move from current position to an associate type position, but just a little curious on exactly how much you have to know about a particular industry that you may be working in. I feel comfortable talking about certain sectors in general terms, but when it starts getting into the details about them, I am not very informed on what certain sectors look at. I know Analysts have been covering their sectors for a while, so have a lot of history of learning what to look for, but when you start as an associate, how much detail are you really supposed to know?

Also some job listings do not even give a sector that you will work with, so it is difficult to know going in. Since associates are at the bottom, I would figure that you do not have to be an expert, but just wanted to hear opinions on how well versed you need to be if interviewing for a particular associate position in a certain sector.

CPATrader

It will depend on the company. Some companies have extensive training programs for associates and therefore just want high quality employees, regardless of how much they know about the sector or even finance at all. Other firms want their associates to be able to hit the ground running and would therefore expect them to already have experience in their sector. It will also depend on what the senior analyst wants. Some like to teach, others don't want to be bothered. But in general, I'd say you don't have to be an expert on a sector to become an associate. However, you still should be able to speak intelligently about it in an interview through a little bit of research (if you can figure out what sector it is in advance).

This is what I've experienced on the buy-side, I don't know anything about the sell-side.



Edited 1 time(s). Last edit at Wednesday, June 29, 2011 at 05:18PM by FIresearch.

KungFuPanda

In terms of sell-side, it heavily depends on the analyst. In equity research, it's pretty much 2 people a team, sometimes 3, and very rarely 4. So, each ER team's culture is heavily dependent on how the senior decides to run the show.

I know a senior who choose a stylish,chesty girl even though she had 0 experience, because he covers women's fashion and wanted someone who could help identify what's hot in fashion.

Another senior wanted someone who already knew his sector with 1-2 years experience and in the interview process heavily grilled on technicals and valuation.

Another senior wanted a cute young asian girl, and didn't care about experience.

Since most people won't go the sex-change + implants route, get an interview first, and try to learn about that industry as best you can. Be prepared to pitch a company or two (DON'T USE A COMPANY the analyst covers, or be prepared to get ripped apart)

ohai

iteracom Wrote:
> prepared to pitch a company or two (DON'T USE A
> COMPANY the analyst covers, or be prepared to get
> ripped apart)

+100000000000000000000000000000000

laurab

When looking for candidates, we've always preferred the following:

1st choice - ER experience + sector knowledge
Generally, most analysts like to hire an associate that is a good fit with experience having covered their sector at another ER shop, so they can hit the ground running on day 1.

2nd choice - ER experience less sector knowledge or sector knowledge less ER experience
Next preference is usually to hire associates with research experience from another sector since there's a level of comfort knowing that the candidate probably knows how to write/model and has a decent understanding of the research business. Or, if you're an industry expert in the sector under coverage but has no research experience.

3rd choice - no ER or sector knowledge
It sounds like you fit in this bucket and I would say knowing the sector is not important. Focus will be on bigger picture things/skillsets such as 1) fit, 2) writing skills, 3) modelling skills, 4) ability to happily work long hours, 5) etc.

That said, I wouldn't focus on sector knowledge but instead would focus on your writing/modelling skills. Also, the one thing all three buckets have in common is fit and is probably the most important attribute.

Good luck.