Deep-dive, fundamental research for private bank

Client: Advisory department of a renowned European private bank.

Bullets:

  • 25 stocks across 8 sectors and 6 Latin American economies
  • 140 Annual research publications
  • 7% Alpha generated with >70% calls hitting the target price

OPPORTUNITY: The client wanted deep-dive, fundamental research on Latin American companies to create a product for investors. The onshore team was fully utilized; and the need of the hour was to find a reliable, cost-efficient offshore partner with a high focus on quality.

SOLUTION:

Considering the client’s requirements, SG Analytics constituted a team of senior equity research professionals and delivered the following solution to the client:

  • SG Analytics constructed a customized, fundamentally-driven stock screener by taking into consideration the client preferences, and ensured geographical as well as sector diversification
  • SG Analytics shortlisted 25 stocks, initiated coverage on them, and diligently monitored the related sectors and economies to add to the depth and quality of the research. To compensate for lack of research availability, SG Analytics adopted the EIC (economy-industry-company) approach to independently formulate its arguments, which were backed up by well-researched data.
  • The release timing of results was unpredictable in many cases, and there were linguistic issues (data in English released much later) as well. SG Analytics ensured that all earnings reports were delivered within 24 hours of their release, irrespective of the release timing.
  • SG Analytics monitored the performance of its portfolio, reported the findings to the client, and recommended switches to maximize the return on the portfolio, thereby ensuring consistent alpha generation

Flow Chart:

  1. Built a solid, well-diversified screener to reflect the client’s investment philosophy
  2. Adopted a deep-dive approach to ensure top quality research and validity of investment thesis
  3. Regularly monitored/shuffled the portfolio to ensure maximization of returns
  4. Flexible team structure to ensure timely delivery of research publications

VALUE DELIVERED:

You have perfectly understood the requirements. Superb research and very useful for us. Congratulations for the performance. Great job. – Head of Advisory

  • Consistently generate positive alpha in the volatile Latin American markets.
  • End-to-end research production, while minimizing client’s involvement and time.
25
stocks across 8 sectors and 6 Latin American economies.
140
Annual research publications.
7%
Alpha generated with >70% calls hitting the target price.

VALUE DELIVERED

►
1
Consistently generate positive alpha in the volatile Latin American markets.
►
2
End-to-end research production, while minimizing client’s involvement and time.