Structure of a Short pitch

Currently gunning for HF recruiting and found a piece of shit stock that ought to be shorted out of existence. All my previous stock pitches were Longs; how would you structure your pitch for a Short?

Thinking about:

I. Recommendation

II. Company background

III. Thesis

IV. Valuation

V. Catalysts + why short now

VI. Risks

 

I think the structure is okay. All I would say is include the thesis you're disproving in the recommendation so it would sound something like "Company A is here today because people think X is true but that is not true because of Y and people will realize this because of/when Z happens".

 
Most Helpful

Seems right but you need to spend a lot more time on V and VI than you would for a long - unlimited downside if you get it wrong & an ongoing cost to just hold the position (likely to be material if it's genuinely a piece of shit company as it'll be heavily shorted already). For risks make sure you think about who might step in and buy the entire company.

And make sure you've checked availability / cost of borrow to check it's actually an implementable idea. Lots of 'no-brainer' shorts are practically impossible to short in any kind of size.

 

Amet architecto quod qui quis hic doloribus tenetur. Distinctio rerum quaerat mollitia id assumenda libero consequuntur. Fugiat est aut aut asperiores expedita. Dignissimos animi quia ut voluptas voluptas recusandae eveniet sed. Quaerat vitae eos nihil sunt sunt soluta. Delectus voluptas commodi et qui. Nobis neque quia at neque tempora et odio sunt.

Career Advancement Opportunities

April 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Citadel Investment Group 96.8%
  • Magnetar Capital 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

April 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

April 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Magnetar Capital 95.8%
  • Citadel Investment Group 94.8%

Total Avg Compensation

April 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (250) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
kanon's picture
kanon
98.9
9
DrApeman's picture
DrApeman
98.8
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”