Examples of SM/MM L/S Ideas

I am looking for examples of short-term L/S pitches to improve pattern recognition. 

There's plenty of material/examples online of long-term pitches in the growth/value/quality camps, but quarterly (3-9m) L/S pitches are very rare and few of high quality. 

Please link to any examples or provide advice on how to approach short-term SM/MM L/S idea generation. It would be greatly appreciated.

79 Comments
 

Thanks for the detailed response

You said forming views on key KPIs can be pretty tricky to do consistently and is basically a coin flip. How do investors consistently generate alpha from variant perceptions of key KPIs?

In addition, does your comment mainly refer to MM model? If so how different do SM think and is it still revolving around key KPIs?

 

World-class! 

(A) Getting reps at PEAD and revision based ideas in a smaller sector/sub-sector of interest (providing room for cross-sector/value-chain/logical-chain analysis). Similarly getting reps at quickly sifting through 10-k/10-q drops, finding what matters and where you are different seems doable. Great. 

(Q) You touch on talent. As an outsider, it's hard to exactly nail why there is a talent shortfall and why churn is so high (except for the obvious factors and analysts not adding enough P&L through the approach you mention). As such, what does the talent pool lack that can be prepared ahead of time? (i.e. what are the nuances ER/AM/IB analysts should learn and focus on that you have perhaps not mentioned). 

All incredibly insightful, thank you!
 

 

Great question. Being a star analyst requires creative thinking, concise writing, and understanding your PMs framework. Great pods function like highly knit sports teams — where you have great chemistry, skill, and the willingness to innovate/adapt strategy. Why there’s a lot of turnover is because there’s not a great process for match-making. At larger MMs there is a bit more structure (analysts go into a pool and then interview with PMs), but it’s still not super, and a part of that is just a fact of life (example: how many people do you date before you get committed?).

 

Not sure why everyone's simping over that comment. It was just about focusing on key factors and front-running PEADS / analyst revisions. Plenty of academic papers on that for you to digest.

 

Short Tesla vs buy all other car manufacturers in the world proportionate to their current market value.

Is Tesla really worth more than all other car manufacturers in the world combined? Hard to believe that should be the case.

 

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