Senior Investment Analyst

Morningstar • Chicago, IL

1d • Hybrid

About The Position

This role requires a deep understanding of financial markets to estimate long-term variables and generate expected returns. The candidate will leverage strong knowledge of financial theory, particularly long-run cash flow models and present value relations, to translate stock-based theories and models to broader asset classes. Expertise is needed in estimating equity expected returns using a supply-side framework, with a proven track record in this area. The position involves knowledge of fundamental demand-side equity models and the ability to use present value relations to decompose risk premiums into supply-side estimations of equity risk premiums. A key responsibility is expert knowledge in equity index aggregation methodologies, including constructing fundamentals based on unique Morningstar data and variables, adhering to industry best practices for producing robust aggregate data for investment processes. The role also demands expert knowledge in econometrics techniques and the ability to develop complex models, including multivariate unit roots, structural breaks, Markov regime switching models, trend and cycle decomposition, and estimation of latent variables, with an expectation of proven contributions. Expertise in time series, cross-sectional, and panel methodologies for back-testing studies and research is required. Strong knowledge of structural macroeconomics, including identifying and analyzing the effects of economic shocks using SVAR models, is necessary. The position requires strong knowledge of fixed income models and term structure models, with the ability to apply these to equities and other asset classes. Familiarity with foreign exchange models, including purchasing power parity models, is also needed. Understanding of cross-asset class interactions and the ability to model joint events using multivariate distributions, including simulations with copulas and marginal distributions, is essential. Finally, a strong understanding of portfolio variance decomposition and the ability to impose diagonal restrictions to capture bottom-up risk information from Morningstar equity analysts is required. Remote work requests will be considered consistent with company policy.

Requirements

• Bachelor's degree in Business Analytics, Finance, Economics, Mathematics, or a related analytical field, or foreign equivalent.
• 3 years of relevant investment experience in Associate Analyst (Multi Asset Research), Financial Product Specialist, or related position.
• Chartered Financial Analyst (CFA) credential.
• Experience with investments, especially expertise in and knowledge of financial theory and the ability to link this to empirical and practical applications, including estimating expected returns and asset allocation.
• Experience with advanced return and fundamental decompositions using knowledge of asset pricing theory.
• Experience with advanced econometrics and use in daily work flow.
• Experience using Python, R, Matlab, Morningstar Direct, Morningstar Direct API in Python, Pitchbook, Office 365 tools relevant to industry database.
• Experience in creating expected return models and estimates for public markets.
• Experience in creating expected return models for assets with non-observable returns.
• Experience in estimating latent variables, including but not limited to state space models and Bayesain Markov Chain Monte Carlo methods.
• Expertise in creating fundamental equity indices and fundamental ratios.
• Expertise in asset class and security level risk estimates and decompositions using eigenvalues and eigenvectors.
• Experience and understanding of economic competitive forces, especially quantitative measurement and modelling dynamics and fade rates of competitive advantages.
• Must possess unrestricted right to work in the U.S.

Nice To Haves

• Proven contributions to the area of estimating equity expected returns using supply side framework.
• Proven contribution to the body of knowledge in econometrics techniques, including multivariate unit roots and structural breaks.
• Remote work requests will be considered consistent with company policy.

Responsibilities

• Estimate long-term variables to generate expected returns using a deep understanding of financial markets.
• Translate stock-based theories and models to broader asset classes using knowledge of financial theory, especially long-run cash flow models and present value relations.
• Estimate equity expected returns using a supply-side framework, with proven contributions to this area.
• Utilize fundamental demand-side equity models and present value relations to decompose risk premiums into supply-side estimations of equity risk premiums.
• Apply expert knowledge in equity index aggregation methodologies, including constructing fundamentals based on unique Morningstar data and variables, and producing robust aggregate data for investment processes.
• Develop complex econometrics models, including multivariate unit roots, structural breaks, Markov regime switching models, trend and cycle decomposition, and estimation of latent variables, with proven contributions.
• Conduct back-test studies and research using time series, cross-sectional, and panel methodologies.
• Analyze the effects of different types of economic shocks, such as supply and demand shocks, using SVAR models.
• Apply knowledge of fixed income models and term structure models to equities and other asset classes.
• Apply knowledge of foreign exchange models, including purchasing power parity models.
• Model cross-asset class interactions and joint events using multivariate distributions, including simulations with copulas and marginal distributions.
• Decompose portfolio variance and impose diagonal restrictions to capture bottom-up risk information from Morningstar equity analysts.
• Communicate business goals and functional requirements effectively to any audience within the enterprise.

Benefits

• 100% 401k match up to 6% of salary
• Stock Ownership Potential
• Company provided life insurance - 1x salary + commission
• Comprehensive health benefits (medical/dental/vision) including potential premium discounts and company-provided HSA contributions (up to $500-$2,000 annually) for specific plans and coverages
• Additional medical Wellness Incentives - up to $300-$600 annual
• Company-provided long- and short-term disability insurance
• Trust-Based Time Off
• 6-week Paid Sabbatical Program
• 6-Week Paid Family Caregiving Leave
• Competitive 8-24 Week Paid Parental Leave
• Adoption Assistance
• Leadership Coaching & Formal Mentorship Opportunities
• Annual Flex Stipend - $1000 annually to cover personal education & well-being expenses
• Tuition Reimbursement
• Charitable Matching Gifts program
• Dollars for Doers volunteer program
• Paid volunteering days
• 15+ Employee Resource & Affinity Groups

What This Job Offers

• Job Type: Full-time
• Career Level: Senior