What do MDs in ER do
As the title says. What does an MD in equity research do - do they have any actual research responsibility or are just bringing in business?
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Kind of depends. It seems like there are two types of MDs those that are client-focused and those that are modeling-focused.
There are generally three types of professionals. 1) Investing/Portfolio Management - as in the name the folks actually making the trades/idea generation. 2) Investment Strategy - pretty wide spectrum, have seen IS folks who exclusively serve as the face of the portfolio management/idea generation side actually getting into the weeds of discussion with clients and nothing more and the other end where the IS folks are very actively involved in the fund creation, top-down analysis in addition to serving as the face of discussion, 3) pure sales folk, know the port and are purely responsible for dollars.
The IS role is very interesting because you have no alpha responsibility, some business development responsibility, but get to get in the weeds.
Thanks man that was really helpful. Also are salaries in ER similar to that in IB?
IS/Sales generally lags a bit but obviously still a great living. My buddy who works on the IS side of things for a big manager makes 150k base plus 30-60k bonus (4 YOE), not bad for a 26-year-old working 8-6ish.
The big money in ER/LO AM is with the PMs. Good PMs generally receive similar base salaries but usually a chunk of the fees on the fund as well as bonus for alpha/general performance. Fairly common to see the top 25 percentile pulling 5-10mm with the top 5 percentile crossing the 10mm+. Of course only the best get paid that not to mention the declining amounts of opening PM seats.
? What port? What fund? OP was asking abt SS ER
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