As an hedge fund analyst

Feb 07, 2010

What does your job entail?

I am an analyst for a long short equity hedge fund. My main responsibility is to advise my portfolio manager on investment decisions. This involves forecasting earnings and valuing companies based on my primary research.

Do you have any specific areas of focus?

My sector focus is industrials (Capital Goods), which is extremely broad. Within industrials, I am currently focused on aerospace, defense and diversified engineering companies. On my personal interest, I also track technology sector especially internet companies.

Did anything draw you specifically to industrials/tech as a sector?

Being an analyst requires you to stay on your toes and achieve a very comprehensive understanding of industry players and sector dynamics. It is often learning about these companies’ products and the science behind them, not just their financial statements.

What skills are emphasized in the work that you do?

I think it’s very important to be a patient listener and a fast learner when you are picking up new concepts. You have to be methodical as well - sometimes you will spend quite some time learning the ins and outs of a sector or the particulars of a company before you can really get an edge.  Diligence is probably the most important attribute for any analyst. It is very easy to lose the trust of your superior by messing up some minor detail, and once you have lost that trust, it can be hard to move back into a position where you have had the same responsibilities as you had before.