Definition
Buy-Side
Investment firms that buy securities for their own portfolios or client accounts, such as hedge funds and asset managers.
The buy-side refers to institutional investors who purchase securities for investment purposes, as opposed to sell-side firms (banks, brokers) that facilitate transactions. Buy-side firms include hedge funds, mutual funds, pension funds, private equity firms, and family offices. These firms conduct extensive research to identify investment opportunities and often use expert networks for primary research. The buy-side is characterized by managing capital on behalf of clients or principals, with performance measured by investment returns.