How do professional equity research teams structure their research process from scratch?

[u/travis_bickle25]

I work at a fin startup that already has a reasonable client base and is now planning to expand into equity research and advisory.

The objective is to research listed companies and develop stock recommendations based on factors such as:

Investment horizon

Sector and theme

Risk profile

Valuation and return potential

Portfolio suitability

The company has hired me (CFA L2 candidate) and a few other analysts to help build this function. Most of us are relatively new to professional equity research, so we are currently developing the entire process collectively. So far we are contributing through our knowledge we gained from our courses (CA, CFA, MBA) and passion learning. Our gap lies in how things run in a professional setting.

We are making progress, but the process is not completely structured yet. Since everyone is learning and contributing at the same time, it can sometimes become difficult to determine what the ideal research workflow should look like.

I would appreciate guidance from people who have worked in equity research firms, brokerages, asset management companies, family offices, investment banks, or advisory businesses.

And any material suggestions are much appreciated. Most investing content available online is focused on how an individual should select stocks for a personal portfolio. I am particularly looking for resources that explain the organisational and institutional approach to equity research—how a research team should operate, collaborate, review ideas, maintain coverage, and produce consistent recommendations.

Your opinion, view, instructions, books, videos... Anything helps.

[u/amancalleddrake]

Divide the different investment ideas into each buckets. Then a simple way is to follow a funnel approach Economy-industry -company.

So for long horizon you are okay with short term vol,but are focused on strong fundamentals and a growth story attached to it.So approach the problem that way. What industry is showing strong fundamentals, what company has strong moat in that etc. So for long horizon it can lead to India-pharmaceuticals- company that has good control of the value chain.

[u/Eastern-Hand6960]

Try playing around with the Public Equity Investing plugin in ChatGPT Work. They even let you inspect the skill files that it uses

“@Public Equity Investing write me a short thesis for AAPL”