| Every summer, droves of newly minted
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| | drain and drastically drying up
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| college graduates descend on Wall Street
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| | opportunities for recent graduates.
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| for an annual rite of passage: two-month
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| | "Research has been so tapered in terms of
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| training programs.
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| | regulatory restrictions," said Shahriar
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| Armed with standard signing bonuses and
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| | Shahida, who recruits undergraduates for
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| Hewlett-Packard financial calculators,
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| | Constellation Capital Management, a hedge
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| these junior analysts-to-be are treated
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| | fund in which he is a principal. "The
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| to professional baseball games, cruises
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| | broad appeal for college hires has
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| around Manhattan and meals in the city's
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| | diminished, especially in terms of
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| finest steakhouses. In turn, they
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| | compensation."
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| earnestly listen to speeches from senior
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| | Though most junior analysts, regardless
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| executives whom they will probably never
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| | of division, start at a base salary of
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| see again.
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| | ,000 to ,000, those in mergers and
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| Tim Nguyen, 22, joined Merrill Lynch last
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| | acquisitions and sales and trading are
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| month as a junior analyst with a research
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| | eligible for the highest performance
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| team in San Francisco.
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| | bonuses, which in flush times can surpass
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| But since 2001, in the era after the fall
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| | half their salaries.
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| of the dot-coms and the rise of Eliot
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| | Still, Mr. Nguyen insisted he was not in
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| Spitzer, the financial industry has shed
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| | it for the pay. "I look at it as an
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| some 55,000 jobs, according to the
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| | opportunity to gain a set of core skills
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| Securities Industry Association, and the
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| | to use in the future," he said, adding
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| ranks of Wall Street's equity researchers
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| | that he wanted to burnish his writing,
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| have suffered some of the highest
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| | marketing and quantitative abilities,
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| casualties. The all-expense-paid summer
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| | which he could then parlay into most any
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| training ritual is now largely reserved
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| | career.
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| for investment banking and trading
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| | In addition to immersion in online
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| recruits. College-level research hires
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| | finance and compliance training he is
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| must train on the job.
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| | required to watch best-practices lectures
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| Take Tim Nguyen, 22, who joined Merrill
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| | like "Accounting Issues Related to
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| Lynch last month as a junior analyst with
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| | Mergers and Acquisitions" and
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| a research team in San Francisco that
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| | "Independent Research: What Is It? What
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| covers mortgage and credit card stocks.
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| | Does It Mean?"
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| It was one of the few equity research
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| | "You have to be careful of what you say,
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| openings at the firm. Merrill no longer
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| | and make sure you're not violating laws,"
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| has a summer training program for its
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| | he said. And, he added, "You need to make
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| college research recruits, steepening the
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| | sure that clients and investors get good,
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| learning curve for hires like Mr. Nguyen.
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| | unconflicted research. That's just the
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| Still, Mr. Ngyuen, who graduated in May
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| | bottom line."
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| with an A- average from the undergraduate
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| | Even if he did not have to walk a
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| business program at the University of
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| | regulatory minefield every day, Mr.
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| California, Berkeley, said he turned down
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| | Nguyen's job would be demanding.
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| multiple offers from hedge funds,
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| | He arrives at the office every morning at
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| consulting firms and other Wall Street
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| | 5 (Pacific time) to update models and
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| divisions in favor of the Merrill Lynch
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| | help prepare research updates for
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| opportunity.
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| | Merrill's sales force and its clients.
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| "My family doesn't invest at all," he
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| | Between listening to company conference
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| said. "But I enjoy tracking stocks and
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| | calls and constantly tweaking his
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| making buy and sell recommendations." Mr.
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| | earnings models for American Express,
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| Nguyen's r?sum? notes that he managed two
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| | Fannie Mae and the other 26 companies he
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| stock portfolios for his college
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| | tracks, he updates PowerPoint marketing
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| investment club, "providing returns
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| | presentations for the three senior
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| competitive with the Standard & Poor's
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| | members of his team. Soon, he will be
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| 500 index for the same period," and that
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| | expected to hold his own in the face of
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| he led his team to a second-place showing
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| | irate calls from traders and clients and
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| at the National Equities Cup, an online
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| | unforeseen earnings bombshells.
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| stock-picking tournament.
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| | "A lot of it," he confessed, "is Excel.
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| Mr. Nguyen also said that he wrote a
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| | You start to see it in your sleep and
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| 25-page term paper his final semester,
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| | dream about it. It's kind of scary."
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| complete with discounted cash flows and
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| | If he's lucky, he says, he'll be out of
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| probability-weighted growth estimates,
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| | the office at 5:30 p.m. That gives him
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| which argued that Google shares were
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| | four and a half hours to buy groceries,
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| undervalued at 0 (they now trade at
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| | eat dinner and study for his four coming
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| 3.50).
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| | licensing exams before his 10 p.m.
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| "It was something I put a lot of work
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| | bedtime. He aims to be up by 4 to do it
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| into so I could be able to mention it in
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| | all over again. "I used to have a hard
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| my interviews," he said. "I'd say it was
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| | time waking up for 8 o'clock classes," he
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| a positive return on my time investment."
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| | said.
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| Equity research used to be a popular
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| | All told, Mr. Nguyen expects to average
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| destination for college graduates, who
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| | about 65 hours a week - and as many as 75
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| were drawn to the chance to master an
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| | hours during earnings season - at his
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| industry sector under the tutelage of a
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| | desk.
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| highly paid analyst who was richly
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| | "I have the chance to contribute - not
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| rewarded come bonus time. But regulations
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| | just be that guy who crunches numbers in
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| now prohibit the use of research to win
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| | a cubicle," he said. "I can picture
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| investment-banking business, isolating
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| | myself doing this in 5 or 10 years.
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| equity research departments as a cost
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|
