WALL STREET TRAINING
Global Investment analysis
Introduction
Top-tier private equity firms and hedge funds expect high quality case studies being done from candidates. Submitting a college or Sell-side level analysis won’t get you the job in this highly competitive Buy-side job market. This 2-day Buy-side case study prep session will equip you with the same analyses being conducted at the top-tier fundamental hedge funds and private equity funds.
Dates(No lectures on Feb. 3, Feb. 10)
Time
Pricing
What to bring
LocationGoal
| Learn how to conduct a deep-dive industry, company and investment analyses as they are conducted at the top-tier global private equities and hedge funds. |
| Focus on the ‘next-level’, ‘beyond financial model’ analyses that will help the students outstand among many candidates for top-tier buyside shops. |
| Cover real-world case studies on companies in various regions (US, Korea, HK, etc). |
| Learn from the actual professionals currently in the buyside rather than from instructors who can only cover theories or limited subjects. |
Cases that will be used in program
Recommended for
01
IB analyst, associates, RA’s at investment banks, research shops, etc
02
Junior professionals at buyside shops (pre-MBA’s)
Instructors
Jay Ju
– Tandem Investors (Emerging Market Fundamental Hedge Fund, HK)
– Allard Partners (Long-only Fund, HK)
- Columbia MBA (Value Investment Program)
For many years, I have worked in Seoul, Hong Kong and New York hedge funds, and conducted deep-dive research in many industries and companies in various countries (from Netherlands to Pakistan).
With MBA from Columbia University, I was able to acquire various tools and knowledge from not only scholars but also from actual fund managers (both PE and HF) in NYC. I prepared for this course by combining real buyside training and helpful practical case courses (taught by seasoned hedgefund professionals) I took at Columbia.
Many finance professionals only invest in a specific region or sector. However, I have looked at various industries/companies in both developed and emerging markets with strictly fundamental angle. Learning such skillsets will definitely give you a leg up during an interview or at the actual buyside workplace be it hedge fund or private equity.
Syllabus
1.Course Overview Core Tool Explanation
-Reasons for Fundamental Investment
-Screening potential targets
-ROIC & Growth → Valuation
-Difference between Corporate Value vs. Market Price
-3 Main causes of ‘Alpha’ generation
-Steps of Corporate analysis : Investment thesis (Case: Tata Motors)
-Idea note Structure and sample
-Idea note example (actual global hedge fund idea note)
2.Industry Analysis I
-Industry map: Relation among suppliers, competitors and distributors
-Calculating and using HHI index
-Finding ROIC per value chain (Case : Tire Industry)
-Market Monopoly (Case : Japan Cement industry)
-Calculating Industry ROIC (Case: Cosmetics Industry)
-Industry Demand vs. Supply Metrics → Resulting in different ROICs
-Supply Projection (Capital expense, sales and inventory)
-Industry ROIC vs. industry overall valuation level
3.Industry Analysis II
-Penetration and growth
-Growth per Industry Chain
-Industry Fluctuations and its Cycle (Case : U.S. Slot Machine Industry)
-Determining industry pie (Case : Global Automotive Industry)
-Industry ROIC vs. WACC → Value of growth (Case : Aviation Industry)
-Porter’s five forces
-Comparison of Industry Cost
-Operating Leverage
-Economy of Scale
-Prediction of Market Share (Case : Education Industry)
-Entry Wall
4.Company Analysis
* Competitiveness Analysis
-Checklist of company analysis
-Sales Forecast
-Fixed Cost vs. Variable Cost
-Sales vs. Cost Forecast
-Successful Business Model (5 Cases)
-Operating Leverage
-Price vs. Volume Effect
* Unit Economics Analysis
-Why is ‘unit’ important?
-Unit Economics (Store-level unit analysis case: Chipotle)
-Incremental Margin (Case: e-Credible)
-Fixed Cost vs. Variable Cost → Leverage Effect
-Analysis of Management
-Removing BIAS
5.VAR / Valuation
* Value Added Research
-VAR (Value added research) – Obtaining information from interview
-Competitor Visit (Case : Megastudy, Auto Industry)
-Partner Visit (Case : Buffalo Wings)
-Customer Visit (Case: Book Publisher)
-Management Visit
-Industry Experts
-Var Mosaic
* Valuation
-Industry specific valuation
-SOTP Examples
6.Accounting Fraud/Tunneling, Report Write-up (HF & PEF Investment Memos)
* Earning Quality / Accounting Fraud
-Case: ENRON
-Case: China Ocean Resources
-Case: Daewoo
-Case: Dentium
* Accounting Fraud Detection
* Report Write-up (HF & PEF Investment Memos)
-Investment Point, difference of Market View
-Valuechain of Company/Industry
-Detailed investment point / Risk / Valuation
-Valuation Scenario (Case : SGMS)
-Hook Write-up
7.Final Review
-Researching oppising view on report
-Creating Checklist
-Presentation of the report
FAQ
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