A Short Stock Pitch Guide

I've gotten over 2 dozen PMs requesting the stock pitch guide I had, so I finally decided to share it...

Hopefully this helps.

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19 Comments
 

Awesome. This will definitely come in handy, I have an ER superday coming up and all of my experience is in S&T.

-- I have deleted this account (or tried). If there is somehow posts still occuring, it is not from the original account holder.
 
Best Response

I'm not sure pitching a short in an interview in the midst of a bull market is a "bold move". In every HF interview I had, I was asked to pitch 1-2 longs and 1-2 shorts... so there was at least 1 short per interview. Obviously the goal is to make absolute returns on your shorts but if SPY is up +40% and your short is +5%, you're PM will take that every day since you're still generating significant alpha relative to an index short. He will love you more if you make absolute returns.

My point is that it's not a "bold move". I would expect you to have a short and frankly, short pitches are much more interesting in a bull market.

 

When given a company to research for an ER associate position, I put a sell on the stock. I held strong to my catalysts and the analyst respected my contrarian viewpoint although i was going against the majority of the street. It's good to differentiate yourself and prove you can add value, whatever way that may be.

 

Absolutely, but you need to keep into mind the following factors - Are the catalysts for a short strong enough? Crunch the numbers - Is this the correct place to short it? Or do you think there will be a rally post which the short story become stronger. Timing is key - How crowded are the shorts? Check short interest? Check liquidity? You need to see how whether you will get squeezed out - Does the borrow on the stock have onerous terms? Any dividend yield? + points for bringing these up

Again the main story comes down to how strong the catalysts actually are and how well you can defend them

 

Both Links don't work anymore, any chance you could update?

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