First-year Training in Investment Research
We offer a variety of training programs in investment research for first-year students. Please see below for all program details. If you have any questions, please reach out to the Parker Center.
Materials provided upon request during the summer prior to the start of graduate studies
The Parker Center offers two different prep programs for students interested in equity research to pursue during the summer. Most of the program is self-study, but feedback on deliverables is provided.
- SHORT: learn about the fundamental equity research process. This program explains the industry review and stock report processes and provides sufficient background to interpret Street research reports. It is appropriate for students who want to learn about equity research but not conduct their own research at this time. It is very helpful for the interview process but may not be sufficient for all interviews. Membership in the Investment Management Club will help you advance further. TIME: 30+ hours
- TRAINED: learn the fundamental research process AND conduct own work. This program is more time consuming but guides students to pursue their own research using primary sources. It is appropriate for students who have time to learn how to conduct fundamental research, want to develop their own insights and recommendations, and be fully prepared to conduct new research on their own or in a new job. Students can continue their training in the fall in the Investment Management Club. While time consuming, students who have completed this process have used it to land summer internships. TIME: 70+ hours
Most of this material was sourced from a course in equity research taught by faculty. As a result, reference will be made to features/assignments that aren’t part of this Prep program. Several of the tools mentioned in his lectures, such as Capital IQ, will be made available when students arrive on campus.
As a supplement, a reading list was prepared by Johnson School 2nd year MBA students.
Evening Fundamental Investment Research Seminar
Annual seminar hosted end of August in Sage Hall.
Goals
- Learn basics of fundamental research
- Begin to prepare a draft one-page report
- Discuss next steps for learning more about fundamental research and careers in investment management
- Instructor leads a discussion on key steps for conducting proprietary, fundamental research using primary sources and preparing written recommendations
- Students spend much of the evening session conducting research using online sources under the guidance of the instructor
- Organized jointly by the Parker Center for Investment Research, the Investment Management Club, and the Investing@Cornell interdisciplinary theme
- Led by Scott Stewart, a member of the Johnson Finance and Accounting faculties
Content
- Finding an interesting stock to study
- Primary sources
- Industry analysis
- Valuation basics
- Buy/Sell/Hold recommendations
- Next steps: The One-Pager
Annual webinar hosted on the first Friday in September.
Knowing how to use best-in-class software tools can provide a competitive advantage to students in the investment management job search process. Johnson students have a unique advantage in that they have access to a range of analytical tools, including FactSet, Capital IQ, Bloomberg, Morningstar, Zacks Investment Research, and Advantage Data, that rival the best of what investment professionals use, in the state-of-the-art Parker Center trading room.
Students are encouraged to sign up for the training series on the use of these tools. Additional training sessions can be arranged upon request. For more information, contact Emily Ravet.
Annual event hosted mid-September in Sage Hall.
Investment research analysts study company financial statements to understand how businesses generate earnings, and they model earnings into the future to understand how their assumptions could impact stock prices.
This workshop provides an introduction to financial accounting and earnings modeling to students interested in preparing stock reports and pitches. It is designed to help students learn key components of income statements, how earnings are impacted by sales revenues and margins, and how to use financial modeling skills in stock research. It will also introduce basic techniques for valuing stocks, including a discussion of direct and relative valuation methods.
No prerequisites. The session includes hands-on activities so participants should bring laptop computers.
“The Pitch”
The Stock Pitch/Mentor Weekend
Annual event hosted end of September in Sage Hall.
The Stock Pitch/Mentor Weekend, held in late September, is designed to support MBA students in developing 5-minute stock pitches and detailed one-pagers. Students conduct preliminary research before the weekend, drawing on what they learned from working with their alumni mentors, the June-August summer prep program, and the September stock pitch camp.
Friday:
11:59 p.m – Stock Pitch/Bond Pitch due
Saturday:
9:00 a.m.-12:00 p.m. – Coaches conduct one-on-one sessions with students to review draft
12:00-4:00 p.m. – Students work on revisions
4:00-6:00 p.m. – Students meet with their mentor/coach for a final pitch discussion
Sunday:
9:00 a.m.-12:00 p.m. – First-round stock pitch competition
12:00-1:00 p.m. – Final round stock pitch competition
NBA 5250 Syllabus: Cayuga Fund Equity Analyst course
Instructor: Scott Stewart, Clinical Professor of Finance and Accounting
Pre-requisites: Successfully participate in summer research prep program, Stock Pitch Camp, The Pitch weekend or prospectus test; and application process
Course Description:
First year students interested in fundamental research begin their training in the summer and fall of their first year by pursuing the summer prep program, one-day Stock Camp, the September Pitch weekend, participating in the Investment Management Club and working on their own, in addition to completing coursework in finance, accounting and management. In early October they apply for participation as First Year Cayuga Fund Analysts. They are only accepted after demonstrating strong interest in investment management and commitment to supporting the Fund.
Students must complete several assignments to earn course credit. Note that students who wish to pursue training in quantitative or other techniques may complete different assignments. Students may work in teams of two or three (two or three per sector).
- Prepare a draft industry review
- Participate in at least one sector team or portfolio team meeting
- Participate in at least one Fund call
- Attend Fund annual review meeting
- Review 2nd years’ fundamental stock picks and assume responsibility for monitoring 2-4 over the summer
Learning objectives:
Students who successfully complete the course will learn
- From the industry review experience, to 1) develop a business analysis of an industry using primary sources such as 10-K reports, 2) explore how stocks within an industry are valued, 3) define an investment thesis and 4) present and defend a thesis.
- From other activities, learn to be part of an investment team and share investment ideas.
Evaluation methods and plan for grading:
- Class participation (50%): students will be assigned to a sector team.Sector team leaders will monitor participation and report observations to faculty.
- Final presentation (50%): students will prepare a summary of their industry review, present it to the Cayuga Fund class and successfully respond to questions.This will be evaluated by faculty.
Note: This course will generate a pass-fail grade.
Planned final deliverables and timing:
- Attendance at 4-5 classes, time to be set in January
- Submission of a draft industry presentation document by the end of March
- Participate in team meeting and/or Fund call by end of April
- Complete the industry review presentation and submit a list of 2nd year stocks to monitor by semester-end Sector Assignments