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sell Side_Buy Side

Date post: 08-Apr-2018
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  • 8/7/2019 sell Side_Buy Side

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    Sell Side

    Buy Side

    Up Side

    Down Side

    Learning to Speak

    InvestmentManagement

    Joan Williams

    March 6, 2002

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    Sell Side

    Buy Side

    PART ONE

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    Industry Organization

    Sell Side Buy Side

    analyst analyst

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    Industry Organization

    Sell Side Buy Side

    analyst analyst

    Company Industry

    Economy

    Recommendations

    & Analysis

    Sell Side Company

    Technical

    Analysis &

    Investment Decision= =

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    The World of the

    Sell-SideAnalyst

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    Sell Side:M

    ajorP

    layers Investment Banks

    CSFB, Morgan Stanley, Merril Lynch, JP

    Morgan, Bank ofAmerica, Deutsche Banc,

    Bear Stearns, CIBC

    Company and Industry Reports

    Regional / Industry Ex. Simmons in Energy

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    Sell Side:G

    oals Produce and sell research

    Call It

    Reputation / Credibility

    Go-to analyst

    Expert status / air-time

    Funny Titles

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    Sell Side:R

    esearch

    Interfacing with Company Management

    Conference Calls

    Company

    Conferences (ex.- Extreme Networks) Robertson Stephens Technology Conference -- San Francisco, CA Wednesday,

    February 27, 2002 Time: 3:00 p.m. PT (6:00 p.m. ET) Presenter: Gordon Stitt, ChiefExecutive Officer

    Merrill Lynch Global Communications Conference -- New York, NY Wednesday, March

    13, 2002 Time: 12:00 p.m. PT (3:00 p.m. ET) Presenter: Gordon Stitt, Chief ExecutiveOfficer

    Economic and Industry Data

    Credit Ratings

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    Sell Side:R

    eports Company / Industry (Sector, SubSector,

    Commodity)/ Economy / Theory

    Report team

    Earnings models

    Supporting analysis

    Expectations EPS and CFPS (First Call / consensus)

    Investment Recommendation

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    Sell Side: Clients Internal and External Buy Side

    Investment Management

    Intermediaries Investment banking analysts

    Chinese wall / conflict of interest

    Bias Buy doesnt mean buy

    Dropping coverage

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    The World of the

    Buy-SideAnalyst

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    Buy Side:M

    ajorP

    layers Investment banks

    Institutional and Private Wealth

    Mutual Funds

    Portfolio Managers

    Institutional and Private Wealth

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    Buy-side: Sell-side relationships

    Buy-side pays for sell-side relationship

    Go-to people

    Often share models or background

    information

    Daily conference calls

    Road shows (usually following report)

    Often internal (I-banks)

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    Buy-Side:R

    esearch

    Build own earnings models

    Utilize Conference Calls

    Daily sell-side calls

    Company earnings

    Company guidance

    Conf. Calls and Road Shows Real-time market trends

    Technical analysis (shhhh.)

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    Buy Side: Flow of information Flow up to PMs and Fund Managers

    Sometimes same people

    Assigned to S&P sector and strategy

    group

    Internal meetings and reports

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    Buy Side: Brokers and traders Access and timing

    Two-way information flow

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    Buy Side:P

    erformanceM

    easures Fund & Portfolio marketing results

    Benchmarking

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    Up SidePARTTWO

    Down Side


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