Buy-side analysts ("buy-siders") work for

buy side Buy-side is a term used in investment banking to refer to advising institutions concerned with buying investment services. Private equity funds, mutual funds, life insurance companies, unit trusts, hedge funds, and pension funds are the most c ...

money management firms such as

mutual fund A mutual fund is an investment fund that pools money from many investors to purchase Security (finance), securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in ...

pension fund A pension fund, also known as a superannuation fund in some countries, is any program, fund, or scheme which provides pension, retirement income. The U.S. Government's Social Security Trust Fund, which oversees $2.57 trillion in assets, is the ...

trusts A trust is a legal relationship in which the owner of property, or any transferable right, gives it to another to manage and use solely for the benefit of a designated person. In the English common law, the party who entrusts the property is k ...

family office A family office is a privately held company that handles investment management and wealth management for a wealthy family, generally one with at least $50–100 million in investable assets, with the goal being to effectively grow and transfer ...

s, and

hedge fund A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...

s. They are tasked with identifying investment opportunities that will improve the net worth of the portfolio for which they work by recommending which securities to buy, hold, or sell. 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. One key difference between buy-side and sell-side analysts lies in their compensation structures. While buy-side analysts are primarily rewarded based on performance, sell-side analysts are typically compensated for their research. Buy-side analysts employ a number of research methodologies, including

fundamental analysis Fundamental analysis, in accounting and finance, is the analysis of a business's financial statements (usually to analyze the business's assets, Liability (financial accounting), liabilities, and earnings); health; Competition, competitors and Ma ...

, portfolio analysis, and both quantitative and qualitative analysis. Fundamental analysis involves valuing securities in accordance with a firm's investment strategies, financial performance, industry conditions, and broader economic factors to determine their intrinsic value. Portfolio analysis refers to the assessment of portfolio risks, asset allocation, and the potential impact of market conditions and macroeconomic events on a given firm's overall portfolio.

References

External links

* Groysberg, Boris, Healy, Paul M., Chapman, Craig J. and Gui, Yang (August 2005), ''Do Buy-Side Analysts Out-Perform the Sell-Side?'', AAA 2006 Financial Accounting and Reporting Section (FARS),
Buy Side at Investopedia.com's dictionary
Financial analysts {{finance-stub

See also

References

External links