Stock Pitch Question
For most HF internships and full time jobs, I know that they almost always ask for a stock pitch write-up. Is it okay to write up a pitch that was previously discussed in an interview with a fund manager? I've added a good amount of my own analysis and perspective, and have different assumptions on some aspects of the company, but the overall gist of the pitch is about the same. How would that be viewed if they recognized it? Any insight would be greatly appreciated.
Yes, but you need to know the business and the thesis as well as the writer who pitched it in the newsletter. You don't even need to have your own assumptions as long as you understand the writer's variant view.
Obviously original ideas are great, but you sourced it from ValueInvestorClub or SumZero or any other credible blogs, it's fine. Also, that particular idea should align with your philosophy so that it's easier for your to internalize the story.
There are very few original ideas on Wall Street and for you at this stage in your career to come up with something truly differentiated is way more work / probably wrong about something. If you see an idea that resonates with you and you do the work yourself, should be fine. I’d just caution not to pick the most popular ideas out there (I.e recent big spin offs are popular at lots of shops) because the PM probably has a strong view on it
If you think it's still a good idea today vs. a year ago, then should be perfectly OK. I would caution against pitching popular hedge fund names though.
Thanks everyone for the great insight. It's definitely not a popular name - the market cap of the company is under $1bn. It's more of a value idea (conservative sum of various assets and segments of the business is much greater than what the current price suggests) with not much emphasis on growth characteristics, but since I'll be applying to a broad range of funds on the public side (internship not FT), will the pitch do the job for more GARP / Tiger Cub-style funds?
Better have a hot take on what will unlock that value, SOTP theses can be graveyards
Why would you pitch something that is the opposite of a fund's known investment style? If that isn't a sure way to get rejected, I'm not sure what is...
Would it be ok to PM you? I couldn't find any info online on the investment philosophies of a few funds I'm applying to, and their holdings don't suggest much either.
Sure.
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