Considering a career in finance: Should you go buy-side or sell-side?

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Buy side includes pension funds and hedge funds while investment banks are on the sell side.

SINGAPORE: Two high-profile bankers in Asia recently made the switch from sell-side to buy-side, which leads to the question: which is the better choice for a career in finance?

Joel Wee, who was a director at Deutsche Bank for six years, left last month to join Singapore-based hedge fund Pilgrim Partners Asia as a portfolio manager. Mamiko Kamimura, who had been with Goldman Sachs since 2008 and served as an executive director since 2020, also left in September and is now with private equity fund HIG Capital in Hong Kong.

First of all, what is a buy-side? It’s the part of financial markets composed of investing institutions that buy securities for money-management purposes. As its name suggests, the sell-side is on the opposite end, offering investment banking, sales, and trading services to institutional and individual clients.The buy-side includes investment managers, pension funds, and hedge funds and the sell-side comprises investment banks, advisory firms, and corporations, among others.

“It might not be that surprising that top bankers are leaving for the buy-side. Hedge funds and private equity funds offerthan banks do – and what’s more, they tend to pay a lot better on account of PnL sharing andSo which side is the better one? The answer may depend on one’s skills and interests, after all. First, someone looking at a career on either side must have some skills in the following areas: industry research, financial modelling, Excel skills, and research report generation.

 

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