• Sharebar

Hey Guys,

I'm an undergrad looking for summer internships and I've been lucky enough to get in contact with a few fund managers. A common theme after talking on the phone with them is that they want to see some of my "work" or something in writing.

I was wondering if those that work in the industry could provide some direction on how a junior analysts report would look like. I think just going over the major sections would be very helpful. Thank you.

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Comments (6)

  • BigHedgeHog's picture

    Recommendation
    Thesis
    Background Summary
    Valuation
    Other considerations
    Risks

  • jankynoname's picture

    It's always a good idea to have one or two stock pitches ready and written up. Doesn't need to be long (they aren't gonna read more than a page or two), but summarizing the key points in your investment thesis. The actual categories you discuss will vary depending on the sector, but something like this would be a good start:

    Tables at top of report: Summary metrics / Stock price chart (5 yr or similar) / Target price, mkt cap, multiples (PE, EV/EBITDA), margins

    Investment thesis: highlight two or three key bullets that you think will drive the stock. At least one of these should be differentiated (i.e. the sell-side isn't talking about it). Highlight any competitive advantages, and particularly SUSTAINABLE comp adv. that the company has.

    Company Overview: Brief (1 para.)

    Growth trends - What's driving revenues, margins, etc? Any emerging mkts exposure? Cyclical vs. secular growth?

    Risks - only need a couple. Everyone already knows that economic downturn is a risk, highlight unique ones for this company if you can.

    Valuation - brief. What multiples are relevant? What's your DCF target price? Upside/downside. It helps if you have a reasonably well formatted model to show them, but they probably won't want to get into a ton of detail.

    If you do this out of undergrad, you should do very well. This is really an MBA level template, and I doubt if most funds expect this from research associates. Good luck, and have fun!

  • New Yorker's picture

    Great, thank you!

    All in all, it seems I shouldn't go over about 2 pages single-spaced?

  • APAE's picture

    +1 to jank for comprehensive breakdown.

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  • kraken's picture

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  • in_the_money23's picture