So, you’ve had your head down, working away anxiety through models and management meetings.  Yet, you can’t ignore the conversations happening all around you.

The future of many Equity Analysts is at risk.  

An independent research firm states the total annual budget for analyst research is about $16B.  The media reports that asset managers plan to slash budgets by about 30%.

But, there are deeper issues that people are not talking about.

 

  1. Equity Analysts are being treated as ‘just another number’

An Equity Analyst is a respectable role.  Many of my friends – and possibly yours – are in this space.  This shakeup will affect lives, yet no one appears to be taking the time to explore this human element.

 

  1. There is a number that has not yet been publicized. What is it?

 58,500.

 

The media has gone from publicizing a potential 30% –  50% cut in analyst jobs.  There are over 117,000 equity analysts on LinkedIn.  Using that as a base, there are roughly 58,500 jobs that could be lost in the shakeup.  And, we haven’t taken sales coverage into account.

 

  1. This shakeup is not to be ignored, we need to offer help

With such a high number, a job loss could hit closer to home than you think.  We can reach out to equity analysts and see if there is anything we can do to help them in the event of a transition.

As for me, I want to prompt you, my equity analyst friends, to create your own survival tactics.

 

Build a portfolio of your stats

  • Who is consuming your research?
  • What’s your following?
  • What feedback have you received from your clients?
  • How many times did you win a call?
  • How have you collaborated within your firm? Across regions? In the same geography?
  • The stakes are high – pull up complimentary emails, II rankings, broker vote stats, etc.

 

Sharpen your profile

  • What sets you apart from other analysts?
  • How long have you been in the industry?
  • What industries have you covered?
  • Get recommendation letters; call on your industry connections to vouch for you.

 

You’ve created hundreds of models – now do one for yourself!

  • How can your unique capabilities be tied to your compensation?
  • Build a service model for yourself.

 

Design your future

  • Keep in mind, your firm might be scrambling to make sense of all the noise and may not be focused on your career path.
  • Present your ideas and get conversations started now. Worse case, you are equipped to job search.

 

These next few months might be rough.  However, I see a new breed of analysts emerging – the adaptable ones that will take this opportunity to become more marketable both in and out of their firms.

 

Here’s to your continued success.

Differentiated Research

 

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