Are my stock pitch ideas acceptable or too lazy? HF interview help

Hey all, I have a HF interview coming up and was wondering if ideas under my sellside coverage are acceptable or would they be considered too lazy?

For context this is a sector analyst role working under the same sector PM I'm currently covering as a sell side associate. 

I've also highlighted some of my past ideas that have worked out in my application, does it help to flag them when giving a background on my self etc or would that be redundant/frowned upon? I'm pretty new to finance (coming from a science background) so appreciate any thoughts. Cheers!

8 Comments
 

Based on the most helpful WSO content, here are some insights regarding your stock pitch ideas and interview preparation:

  1. Using Ideas Under Sell-Side Coverage:

    • Ethical Considerations: It's crucial to understand the ethical implications of pitching stocks that your current firm is invested in or has passed on. According to previous WSO threads, pitching stocks that your firm is currently invested in might be seen as a conflict of interest. If your firm has passed on a stock, it might be more acceptable, but you should still be cautious and transparent about your previous involvement.
    • Perception of Laziness: Using ideas from your sell-side coverage might be perceived as less original. Hedge funds often value unique and independently generated ideas. As noted by @BlackHat, a hedge fund partner, many managers look at the same set of companies, and originality in idea generation is highly valued.
  2. Highlighting Past Successful Ideas:

    • Value in Demonstrating Success: Highlighting past successful ideas can be beneficial. It shows your ability to identify and analyze profitable investments. However, ensure that these examples are relevant to the role you're applying for and demonstrate your analytical skills and understanding of the sector.
    • Presentation: When discussing your background, make sure to present these ideas in a way that showcases your thought process, research methodology, and the outcomes. This can help differentiate you from other candidates.
  3. General Tips for HF Interviews:

    • Originality and Depth: Focus on generating original ideas and conducting thorough research. Avoid common methods like quantitative screening, as they are widely used and may not add much value.
    • Research Process: For buy-side roles, the research process is often more thorough and long-winded compared to investment banking pitches. Candidates may spend weeks or months finding and researching stocks for pitches.

In summary, while using ideas from your sell-side coverage might be acceptable, it's essential to ensure they are presented ethically and demonstrate your unique insights. Highlighting past successful ideas can be beneficial if done correctly. Focus on originality and thorough research to stand out in your HF interview.

Sources: Stock Pitch Sample Template - Proven Examples to Help Ace Your Interview, Stock Pitch Sample Template - Proven Examples to Help Ace Your Interview, Review My Stock Pitch, Stock pitches for experienced hires

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Congrats on biotech HF interview

Pitching something under your coverage is typically fine, as long as there is real meat to the pitch and not just a rehash of whatever your sell-side reports say. Yes, I will go pull the reports if you say it’s something you already work on. Bonus points for adding any color about disagreements you have with your analyst and other buysiders s/he has spoken to. If you can tell me why you think X, Y arguments from investors are unfounded for whatever reasons, then that would make for a very strong pitch. But don’t force it

 
Most Helpful

imo most likely viewed as lazy. your buyside client knows the constraints of sell-side pitches. 

I'd put on my buyside HF analyst/PM hat and rewrite a current one that shows you know how the fund operates (% of book / how to build into the position / how what to hedge / TRS on the equity / Option vol strat for enhancement / add level respect to market / similiar price patterns with a different company / etc). Since you're only sellside I'd explore how you'd take the research further to get legal data or info that isn't mainstream on the catalyst / drug / company.

He already likes you to interview. Show him you're wasted on the sell side. 

 

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