WHAT DOES AN EQUITY ANALYST DO?
Updated: Jun 04, 2025 - The Equity Analyst conducts in-depth market research to track business trends and economic conditions, providing valuable insights for current and potential holdings. Collaborates with Portfolio Managers to identify stocks with strong earnings growth and evaluates business fundamentals through detailed data analysis. Writes reports to communicate key findings, maintains relationships with industry experts, and supports team efforts with ongoing research projects.
A Review of Professional Skills and Functions for Equity Analyst
1. Equity Analyst Duties
- Market Research: Researching, gathering, and exchanging information regarding business trends, company developments, and the economic climate as it relates to the team’s current and potential holdings.
- Data Analysis: Reviewing and analyzing sell-side industry/company contacts, research databases, earnings reports, and media resources.
- Stock Selection: Working with Portfolio Managers to identify stocks with superior and sustainable earnings growth and attractive valuation characteristics.
- Fundamental Analysis: Working to detect any deterioration in business fundamentals for the fund's holdings.
- Data Management: Utilizing financial market databases, software, and other resources to source, manipulate, and organize company/market data.
- Report Writing: Crafting written reports to identify trends and communicate meaningful information used in financial analysis.
- Market Awareness: Maintaining market awareness by continually exchanging information on business trends and company developments with other Analysts, Traders, and Portfolio Managers.
- Relationship Building: Establishing effective relationships with Broker/Dealer Analysts and sales staff to maximize knowledge of industry and company fundamentals.
- Industry Expertise: Developing expertise in assigned company and industry universe.
- Team Support: Serving as a resource to the Investment Services team in the area of expertise.
- Research Projects: Completing special research projects.
2. Equity Analyst Details
- Analytical Skills: Research and analyze industry and company fundamentals with the goal of developing insightful judgments and opinions.
- Strategic Engagement: Identify opportunities for strategic engagement with portfolio companies in key ESG areas.
- Value Creation: Drive value creation through improvements to ESG practices, specific product impacts, and/or capital allocation strategies.
- Valuation Skills: Assess stock attractiveness by translating those insights into valuation estimates using multiple methods to yield stock investment recommendations for the Portfolio Managers’ review that outperform the assigned benchmark.
- Communication Skills: Communicate recommendations to Portfolio Managers verbally and in written reports.
- Research Skills: Conduct high-quality empirical research to generate uncorrelated alpha, utilizing knowledge of equity markets, including drivers of return, risk control, and portfolio construction techniques.
- Technical Proficiency: Utilize computer technology in financial research and data to manage, rebalance, interrogate, and analyze quantitative portfolios and models and ferret out relevant data to construct databases that are useful for validating research results.
- Project Support: Support key investment and technology projects, demonstrating experience and expertise in portfolio construction.
- Knowledge Expansion: Continually expand and deepen investment, portfolio construction, and ETF product knowledge base.
- Partnership Skills: Partner with sales and senior consultants to drive flows into Engine No. 1 products by developing portfolio analyses and solutions, serve as product/investment specialist for client discussions.
3. Growth Equity Analyst Responsibilities
- Networking Skills: Proactively identify, cultivate relationships, and catalyze transactions with the best B2B technology companies in the world.
- Representation Skills: Represent SGE at industry conferences around the United States.
- Leadership Skills: Lead review of potential new investments, including quantitative and qualitative analysis, market and industry research, transaction and returns modeling, and company valuation.
- Material Development: Develop presentation materials for the firm, portfolio companies, and management teams at prospective companies.
- Relationship Building: Build close relationships with portfolio company founders and leadership teams.
- Strategic Development: Proactively find ways to add value to portfolio companies post-investment from surfacing M&A targets to helping with strategic and operational projects at each company.
- Investment Sourcing: Developing relationships with companies to source investments.
- Engagement Skills: Responsible for connecting with entrepreneurs daily (via phone, email, and in-person), learning about businesses, asking them about challenges, and building multi-year relationships.
- Thesis Development: Work within sector teams to develop and prosecute investment theses in the software space.
- Due Diligence Execution: Exposure to executing due diligence (including market, customer, and competitive analysis, financial modeling, and deal structuring).
4. Equity Analyst Accountabilities
- Technical Support: Provides technical assistance to City departments and increases the visibility, involvement, and support of community organizations in equity.
- Collaborative Skills: Collaborates with City departments and community stakeholders to establish equity as a shared value across the organization and the community.
- Data Analysis: Collect, analyze, and present data measuring the City's progress in incorporating equity, diversity, and inclusion throughout the organization.
- Community Engagement: Gathers input from diverse community groups, analyzes data, and identifies emerging trends impacting Dallas residents.
- Meeting Support: Supports Equity Core Team meetings and tracks progress in meeting equity goals.
- Event Facilitation: Develops and facilitates events, meetings, and activities to build dialogue and partnerships on social and economic issues surrounding equity. Participates in the development of grant proposals, reports, presentations, and workshops.
- Diversity Management: Exercises lived and studied experience in managing collaborative relationships and programs with people of various races, ethnicities, gender identities, sexual orientations, and diverse places and organizations.
- Consultative Skills: Consults and participates in solving administrative problems in developing changes in departmental organization, procedures, and policies.
- Program Evaluation: Evaluates the effectiveness of current practices/programs and looks for ways to improve the City’s functions through regular and ongoing qualitative and quantitative data analysis techniques.
5. Equity Financial Analyst Functions
- Financial Analysis: Perform intricate and large-scale financial analysis to support equity planning and execution of physician practice partnerships and other strategic growth initiatives internally.
- Modeling Skills: Build detailed financial models and analysis across multiple aspects of the equity platform.
- Presentation Skills: Develop and present memoranda, presentations, and detailed financial analyses to management and equity holders.
- Communication Skills: Communicate equity information, value, and impact of various financial and strategic analyses to involved individuals, groups, and senior Practice leadership.
- Equity Support: Support all key issues relating to the Practice’s equity structure.
- Data Evaluation: Evaluate, assess, and report on financial data and identify problems and opportunities.
- Financial Reporting: Prepare and/or review financial statements and supporting financial schedules.
- Investor Relations: Responsible for day-to-day communications including Investor Relations and equity requests.