Buy-Side
Also known as: Institutional Investor, Asset Manager
The buy-side refers to institutions that invest money on behalf of clients, such as mutual funds, hedge funds, and pension funds, in contrast to the research-producing sell-side.
The buy-side is the part of the market that invests capital: mutual funds, hedge funds, pension funds, and other asset managers buying and selling securities to generate returns for their clients.
How it differs from the sell-side
The sell-side publishes research and executes trades. The buy-side makes the actual investment decisions and is the audience a company most wants to win over, because these are the investors who can take meaningful positions in the stock.
Why it is the IR priority
Understanding which buy-side investors own the stock, why they own it, and what would make them buy more is the heart of investor targeting and a well-run IR program.