SUMMER 2026 BUY-SIDE INTERNSHIP

Buy Side

firms that invest money on behalf of clients or investors to generate returns

Types of buy side firms

• asset managers

• hedge funds

• pension funds

• mutual funds

• endowments

• wealth managers

Asset Manager

a firm that manages investments on behalf of clients or institutions to help grow their money and generate returns

clients: individuals, pension funds, endowments, corporations

investments: stocks, bonds, alternative assets

Hedge Fund

an investment firm that manages money for wealthy individuals or institutions and often uses more aggressive or complex investment strategies to generate high returns

strategies: short selling, leverage, derivatives, concentrated positions

All hedge funds are asset managers, but not all asset managers are hedge funds

hedge funds are a particular kind of asset manager (with more aggressive strategies, more flexibility, fewer regulations, wealthier clients)

Pension Fund

an investment fund that manages retirement money for workers and invests long term to ensure future retirement benefits can be paid

focuses heavily on long term growth, stability, and risk management

Mutual Fund

a professionally managed investment fund where many investors pool their money together to invest in a diversified portfolio of securities

common for everyday investors

can invest in stocks, bonds, both

Endowment

an investment fund owned by a university, nonprofit, or institution that invests money long term to help fund operations, scholarships, research, or other institutional goals

Wealth Manager

a firm or advisor that helps high net-worth individuals / families manage their money and financial goals

Retail Investor

an individual person investing their own money

Sell Side

firms that provide services to investors (investment bankers, brokers, and research firms)

Asset Allocation

how an investor divides money across different investments to balance risk and return

Portfolios are often allocated across

• asset classes

• geographies

• sectors

• investment styles

• risk levels

• currencies

• strategies

learn more about this

AUM (Assets Under Management)

the total value of assets a firm manages for clients

Benchmark

a standard used to compare investment performance (S&P 500)

Alpha

the extra return earned above a benchmark

Beta

a measure of how sensitive an investment is to the market

Volatility

how much an investment’s price moves up and down

Diversification

spreading investments across different assets to reduce risk

Liquidity

how easily an investment can be bought or sold without affecting its price

Bull Market

a market where prices are generally rising

Bear Market

a market where prices are generally falling

Rally

a strong upward move in stock prices

Correction

a market decline of roughly 10% from recent highs

Market Cap (Market Capitalization)

the total value of a company’s shares outstanding

= share price x shares outstanding

(large cap means they are a large company by market value)

Growth Stock

a company expected to grow earnings quickly

Value Stock

a company considered undervalued relative to fundamentals

Dividend

Cash paid by a company to shareholders

Yield

the income return on an investment, usually expressed as a %

learn more about this

Excess Return

return earned above a benchmark or required return

Risk-Adjusted Return

return measured relative to the amount of risk taken

Sharpe Ratio

measures return earned per unit of risk

= return - rf rate / standard deviation

= excess return / standard deviation

higher sharpe ratio is better

Attribution Analysis

breaking down why a portfolio outperformed or underperformed

Active Management

trying to beak the market through investment decisions

Passive Management

tracking an index instead of trying to outperform it

Over / Underweight

holding more / less of an asset or sector than the benchmark

Equity

ownership in a company through stock

EPS (Earnings Per Share)

company’s profit / shares outstanding

you want a high EPS

PE Ratio (Price to Earnings Ratio)

stock price divided by earnings per share

used to value companies

Net Income

total revenue - total expenses

Valuation

determining what a company or investment is worth

Bond

a loan made by investors to a company or government

Coupon Rate

the fixed interest payment the investor receives

YTM

the bond’s market interest rate

Interest Rates

the cost of borrowing money

Discount Bond

coupon rate < YTM

Premium Bond

coupon rate > YTM

Duration

a measure of how sensitive a bond is to interest changes

(review notes of this)

The Fed

the U.S. central bank that controls monetary policy

Monetary Policy

actions taken by central banks to manage the economy

GDP

the total value of goods and services produced in an economy

KPI (Key Performance Indicator)

a metric used to measure success or performance