The bottom line: if you want a hedge fund career, or a career in closely related fields, you’ll need some solid stock pitches to interview successfully for Hedge Fund Analyst roles.Īnd if you want to start a hedge fund, you’ll need to generate a steady stream of stock pitches. On the Job: Finally, if you’re working at a hedge fund or other investment firm, you’ll research and pitch stocks on the job regularly.Personal Investing: If you have a personal trading account and you invest in individual stocks, you can use stock pitches to hone your reasoning and make better picks.Investment Clubs and Competitions: You’ll have to present your views, argue why a security is mis-priced, and then convince others that you’re right.Interviews: You’ll be asked to pitch a stock all the time in hedge fund and asset management interviews.Networking: For example, you could look up contact information for hedge fund professionals and include your pitch in your introductory email to them.You use a stock pitch in the following ways: What is a Stock Pitch?ĭefinition: A stock pitch is a short write-up or presentation that argues for or against investing in a public company’s stock, and which is backed by a strong investment thesis, data, valuation metrics, catalysts, and an assessment of the risk factors. I’m not going to share the full financial models, but you can get a sense of the AVB valuation by looking at our tutorials on REIT NAV Models and REIT Valuation.įor the Jazz model, there’s a whole treasure trove of DCF modeling tutorials on our YouTube channel. The AvalonBay stock pitch turned out to be correct, with the company returning over 25% (including dividends) compared with an overall S&P gain of ~10% in that time frame. The Jazz stock pitch turned out to be incorrect over a 12-month time frame, but it was correct over a ~6-month time frame when the stock price fell. Jazz Pharmaceuticals – – Word | PowerPoint.I’ll share two below from our financial modeling courses: Let’s start with the most important part: stock pitch examples for real companies. Stock Pitch Section 6: Risk Factors and Mitigating Factors.Stock Pitch Section 3: Investment Thesis.Stock Pitch Section 2: Company Background.Stock Pitch Research and Valuation Process.Step 6: Favor Companies with Clear Catalysts.Step 5: Eliminate Companies with Messy Financial Statements.Step 4: Find Companies with 3-4 Key Drivers, At Most, and Relatively Pure-Play Businesses.Step 3: Screen for Mid-Sized Companies in the Industry.Step 2: Start with an Industry You Know Something About, or That Lends Itself to the Fund’s Strategy.How to Find a Company to Pitch, Step-By-Step.Building an Investment Thesis: Stock Pitch Idea Generation.
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