Meetings with management
I'm interviewing with a HF that asked me to write up a L/S thesis on a company of my choosing. The company I chose had an equity offering a few months ago and I found out that this firm I'm interviewing with attended the roadshow but didn't subscribe. I've also found out that the firm has met with this company's management in 1x1 meetings since then, but still hasn't invested in the company (as far as I know based on public filings). Does this suggest that the PM doesn't feel strongly about this company and so I should pick another company for my thesis? Why does the HF keep meeting with the management team if they're not invested? I've never worked at a HF before so I'd appreciate an insider's perspective!
1) They could be short the company.
2) Sometimes the company can offer read-through into other companies - maybe they are a major customer / supplier / competitor for another company that the fund is more interested in.
3) If you are the analyst and this is a major company in your sector, you need to check in on the company to see if anything has changed that would change your mind about the company.
Thank you for the insight!
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