NEW: Top HF Analyst - Financial Model and Idea Generation
How to go from 0 to 1 on a stock. Please share your stock preferences and questions.
Ever wondered what it takes to cover a stock like a top-ranked hedge fund analyst from 0 to 1?
You can read about a stock all you want, but…
How do the best analysts actually think about it behind closed doors?
What is it that they do and look at daily to generate high-quality ideas?
What are the latest analyses and data they rely on?
I will be picking a stock and walking you step-by-step through the process to understand the sector and the specific company inside and out. We will also build the financial model, learn how to generate a truly variant view and how to pitch/communicate the thesis in the most effective way.
With this post, I’m hoping to get your feedback. Please reply to this email and let me know:
if you prefer a specific sector / subsector / stock
any questions / topics you want covered - it can be anything
So far I’ve heard from some of you that you want either a consumer or a TMT name. Please bear in mind I will only be able to choose one. The level of granularity and insights we want to go into here is only possible with a single stock example.
But while the specific example will include a single stock, the general process will be applicable across any name.
Single-manager vs multi-manager
This goal for this is to be relevant both for multi-manager hedge funds and single-manager ones. I will discuss some of the differences in the investment process for each, especially as it relates to the idea generation process, time horizon, modeling and use of data. We love multi-managers at Phoenix, so we'll certainly cover that in depth. As you know, analysts at these hedge funds have more tools in their repertoire.
Only publicly available data
Everything, including the model, will be done without any use of non-public resources for 2 reasons:
You should be able to replicate it, regardless of how large your investment firm is and the resources you have access to.
If you are preparing for a case study now or in the future, you can see in real time how to build a 3-statement model, form a differentiated view, effectively communicate a thesis and analyze a company. Just like you would preparing for an interview or a pitch competition.
However, we will still cover how analysts who have access to the best available tools and data actually model and generate ideas, so you can apply that if you are in the seat.
Materials
Most of the process and information will be documented here on the Substack as we go along. But the more in-depth insights, idea generation, the full model, deep dives, along with any relevant accompanying videos, will be made available only on phoenixlearning.io.
Join now!
If you haven’t joined Phoenix yet, do it now: phoenixlearning.io.
Lindt/Skechers: how to generate idea on the stock that does not have significant market debate, more on differentiated views on EPS growth?
Or NKE: how to generate idea on the company has clear market debate but has been heavily exploited by investors
It would be greatly helpful if the research (referred materials) and idea generation/thinking process could also be documented to understand what’s the most efficient & productive way to generate idea.