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The Longs and the Shorts

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  • 8/8/2019 The Longs and the Shorts


    The Longs and the Shorts


    Long/short equity is an investment strategy generally associated with hedge funds, and more

    recently certain progressive traditional asset managers. It involves buying long equities that

    are expected to increase in value and selling short equities that are expected to decrease in


    Typically equity long short investing is based on 'bottom up' fundamental analysis of the

    individual companies in which investments are made. There may also be 'top down' analysis

    of the risks and opportunities offered by industries, sectors, countries and the macroeconomic


    Long short covers a wide variety of strategies. There are generalists, and managers who focus

    on certain industries and sectors or certain regions. Managers may specialize in a kind of

    stock, for example value or growth, small or large.

    The role of equity research analyst is to provide information to the market. An efficient

    market relies on information: a lack of information creates inefficiencies that result in stocks

    being misrepresented (over or under valued). So it is expected from you to use your expertise

    and spend a lot of time analyzing a stock, its industry and peer group to provide earnings and

    valuation estimates. Research is valuable because it fills information gaps so that each

    individual investor does not need to analyze every stock.

  • 8/8/2019 The Longs and the Shorts



    The Event will involve 2 rounds:


    The teams would be required to prepare and submit an Equity Research Report which should

    include the following details:

    1. Clearly Defined BUY or a SELL recommendation on the stock (HOLD Recommendation

    not allowed).

    2. Price Target (which should be based on the valuation of the stock)

    3. Clearly defined Price Target End Date (by when do you expect the Price Target will be


    4. Negative Drivers and key downside risks to your Price Target

    5. Detailed Company and Industry analysis

    6. Valuation of the stock based on sound assumptions

    7. The rationale behind adopting the valuation methodology used should be clearly


    8. Excel sheets which clearly shows how the valuation of the stock is done


    Participants are expected to have a thorough and insightful assessment of the company

    and the sector to which it belongs in addition to having on overall perspective of the market

    in general.

    analyst meets, interviews with company executives, analysis of competition and information

    as available from suppliers, distributors, major customers and other independent sources.

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    the management of the companies that they are evaluating. However the same should be

    supported with adequate reasoning.

    published reports of the analysts with proper attribution.


    You can pick any stock which is listed either NSE or BSE with a market capitalization of

    equal to or more than Rs. 500 crores as of 31st December, 2010. However, it is required that

    the performance of the company be tracked over the span of at least 3 years.


    The following are the minimum requirements for the report:

    support for the utility of the investment approaches,

    research and valuation methods employed in arriving at the recommendation.

    In addition, the report should also address the following issues:


    Overall depth of the management

  • 8/8/2019 The Longs and the Shorts


    is no compulsion to adhere to this format.


    The maximum word limit for the report is 2500 words (excluding annexure)

    The report should be in Times New Roman, size 12 and 1.5 line spacing

    The first page / cover page should have the College Name, Team Name, Name and

    Contact Details of Team Members and the Name of the Stock picked


    The evaluation will be done by a panel of experts which includes IMNU faculty


    Top 5 teams will be selected on the basis of the first round and will be invited to the IMNU

    campus and will be required to make presentation in front of industry experts (including

    IMNU faculty).


    A team can have a maximum of 2 members.All the team members should be students of full time management course.

    No limit on the number of teams from one B school.

    One person cannot be in more than 1 team.Both the participants should be of the same college.The report must be sent in .pdf format

    Entries should be sent to [email protected]


  • 8/8/2019 The Longs and the Shorts


    Any instance of plagiarism will lead to immediate disqualification

    All material submitted in this competition will become the property of IMNU and the

    deserving reports may be included in the IMNU finance website/blog and the review

    magazine of the event to be circulated to AMCs, broking firms and other B schools.

  • 8/8/2019 The Longs and the Shorts



    Event starts on 22nd Jan11 00:00 AM IST

    Last Date for submission of reports 30th Jan11 11:59 PM IST

    Results of First Round 1st Feb11 11:59 PM IST

    Deadline for confirmation in the second round 3rd

    Feb11 09:00 PM IST

    Final Event 11th

    , 12th

    & 13th



    First Prize: 12000/-Second Prize: 6000/-

    All the teams short-listed for the final event will be awarded certificates of appreciation.

    Event Website:

    Event Email-ID: [email protected]

    Event Coordinator: Perspective Coordinator:

    Mitesh Jain Arjit Gupta

    076988169325 09904499818

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