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sell_side.ppt sell_side.ppt Presentation Transcript

  • Sell Side Buy Side Learning to Speak Investment Management Joan Williams March 6, 2002 Up Side Down Side
  • Sell Side Buy Side PART ONE
  • Industry Organization Sell Side Buy Side analyst analyst View slide
  • Industry Organization Sell Side Buy Side analyst analyst Company Industry Economy Recommendations & Analysis Sell Side Company Technical Analysis & Investment Decision = = View slide
  • The World of the Sell-Side Analyst
  • Sell Side: Major Players
    • Investment Banks
      • CSFB, Morgan Stanley, Merril Lynch, JP Morgan, Bank of America, Deutsche Banc, Bear Stearns, CIBC
      • Company and Industry Reports
    • Regional / Industry
      • Ex. – Simmons in Energy
  • Sell Side: Goals
    • Produce and sell research
    • “Call It”
    • Reputation / Credibility
      • Go-to analyst
      • Expert status / air-time
    • Funny Titles
  • Sell Side: Research
    • 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, Chief Executive 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 Executive Officer
    • Economic and Industry Data
    • Credit Ratings
  • Sell Side: Reports
    • Company / Industry (Sector, SubSector, Commodity)/ Economy / Theory
    • Report team
    • Earnings models
    • Supporting analysis
    • Expectations
      • EPS and CFPS (First Call / consensus)
    • Investment Recommendation
  • Sell Side: Clients
    • Internal and External Buy Side
      • Investment Management
    • Intermediaries
      • Investment banking analysts
    • Chinese wall / conflict of interest
    • Bias
      • “Buy doesn’t mean buy”
      • Dropping coverage
  • The World of the Buy-Side Analyst
  • Buy Side: Major Players
    • Investment banks
      • Institutional and Private Wealth
    • Mutual Funds
    • Portfolio Managers
      • Institutional and Private Wealth
  • 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)
  • Buy-Side: Research
    • 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….)
  • Buy Side: Flow of information
    • Flow up to PM’s and Fund Managers
      • Sometimes same people
    • Assigned to S&P sector and strategy group
    • Internal meetings and reports
  • Buy Side: Brokers and traders
    • Access and timing
    • Two-way information flow
  • Buy Side: Performance Measures
    • Fund & Portfolio marketing results
    • Benchmarking
  • Up Side PART TWO Down Side