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The Longs and the Shorts
DESCRIPTION:
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
value.
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
situation.
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.
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EVENT DETAILS:
The Event will involve 2 rounds:
ROUND ONE:
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
achieved)
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
mentioned
8. Excel sheets which clearly shows how the valuation of the stock is done
REPORT PREPARATION:
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.
STOCK SELECTION:
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.
REPORT CONTENT:
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:
unity
Overall depth of the management
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is no compulsion to adhere to this format.
REPORT 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
EVALUATION:
The evaluation will be done by a panel of experts which includes IMNU faculty
ROUND TWO:
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).
IMPORTANT RULES:
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]
PLEASE NOTE:
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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.
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IMPORTANT DATES:
Event starts on 22nd Jan’11 00:00 AM IST
Last Date for submission of reports 30th Jan’11 11:59 PM IST
Results of First Round 1st Feb’11 11:59 PM IST
Deadline for confirmation in the second round 3rd
Feb’11 09:00 PM IST
Final Event 11th
, 12th
& 13th
Feb’11
PRIZE MONEY:
First Prize: 12000/-Second Prize: 6000/-
All the teams short-listed for the final event will be awarded certificates of appreciation.
Event Website: http://perspective-imnu.com/
Event Email-ID: [email protected]
Event Coordinator: Perspective Coordinator:
Mitesh Jain Arjit Gupta
076988169325 09904499818
