Buy-side analysts ("buy-siders") work for
buy side money management firms such as
mutual funds,
pension fund
A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income.
Pension funds typically have large amounts of money to invest and are the major investors in listed and priva ...
s,
trusts, and
hedge funds. They are tasked with identifying investment opportunities that will improve the net worth of the portfolio for which they work.
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.
See also
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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." T ...
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Securities research
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Quantitative analysis (finance)
Quantitative analysis is the use of mathematical and statistical methods in finance and investment management. Those working in the field are quantitative analysts (quants). Quants tend to specialize in specific areas which may include derivative s ...
References
* 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
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