Buy-side analyst
Encyclopedia
Buy-side analysts work for buy side
money management firms such as mutual funds, pension funds
, trusts
, and hedge funds. They are incentivised to identify investment opportunities that will improve the net worth of the portfolio they work for.
A buy-side analyst typically works in a mutual fund, pension fund, or other non-brokerage firm, and provides research and recommendations exclusively for the benefit of the company's own money managers (as opposed to individual investors). Unlike sell-side
recommendations and reports—which are meant for the analyst's brokerage firm's clients, and the broad outlines of which the press often widely disseminates—buy-side recommendations are not available to anyone outside the firm. If the buy-side analyst stumbles upon a formula, vision, or approach that proves effective, it is kept secret.
Buy side
Buy-side is a term used in investment banking to refer to advising institutions concerned with buying, rather than selling, assets or securities...
money management firms such as mutual funds, pension funds
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
, trusts
Trust law
In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another...
, and hedge funds. They are incentivised to identify investment opportunities that will improve the net worth of the portfolio they work for.
A buy-side analyst typically works in a mutual fund, pension fund, or other non-brokerage firm, and provides research and recommendations exclusively for the benefit of the company's own money managers (as opposed to individual investors). Unlike sell-side
Sell-side analyst
A sell-side analyst works for a brokerage firm and evaluates companies for future earnings growth and other investment criteria. They sometimes place recommendations on stocks or other securities, typically phrased as "buy", "sell", or "hold." They are incentivised by offering their recommendations...
recommendations and reports—which are meant for the analyst's brokerage firm's clients, and the broad outlines of which the press often widely disseminates—buy-side recommendations are not available to anyone outside the firm. If the buy-side analyst stumbles upon a formula, vision, or approach that proves effective, it is kept secret.