ABI HELPED HEDGE FUND TO RAMP UP RESEARCH COVERAGE IN ASIA-PACIFIC

THE CLIENT

A new hedge fund with mandate to invest in the Asia-Pacific markets wanted to ramp up its research coverage quickly and in cost effective manner

SCOPE OF WORK

The client needed a ready to deploy team with deep expertise in investment research in the Asia-Pacific region; the client was also looking for local language research support

The specific scope of the work included:

  • Building initial stock screener based on operational, financial and valuation indicators of shortlist research coverage universe of 200 stocks
  • Quantitative and Qualitative screening of 200+ stocks to shortlist 60 stocks for investment consideration
  • Deep-dive financial models and valuation on 60+ stocks to begin with and then regular maintenance of these models
  • Regular research support, coverage maintenance and pre-&-post earnings analysis on coverage universe companies
  • Thematic research notes and white papers / investment play books for distribution among fund investors

ABI SOLUTION

  • ABI deployed an experienced team of 5 analysts, each with robust experience in buy side equity research
  • INVESTMENT SCREENING
    • ABI team developed an investment screening model with an array of powerful functionalities and features. The tool was easy to use, and fund managers were able to compare 1,000+ stocks on cross sectional basis at a single click
    • The screening tool was fully scalable in terms of addition of new stocks and parameters. An advance dashboard and charting functionalities helps visual depiction of the trends
    • For deep-dive screening of 200 stocks – ABI developed a scoring framework across operational, financial and valuation parameters and country specific market attractiveness. This helped a better comparable analysis
  • DEEP-DIVE RESEARCH
    • ABI analysts created in-depth financial models on each of the 60 qualified stocks based on business drivers. The team valued the stocks using multiple techniques like discounted cash flows, relative valuation and sector specific valuation techniques
    • The team prepared stock recommendation notes – detailing investment positives and risks, valuation case (Bull, Bear & Base) – for the consideration of investment committee
  • COVERAGE MAINTENANCE
    • The team continuously monitored the market movements and macro/sector/company specific news flow
    • The team updated models and recommendation notes for earnings and any significant corporate development
  • ADDITIONAL RESEARCH
    • The team prepared many country specific investment themes reports and white papers
    • The team also supported the Client with the preparation of monthly and quarterly performance reports for investors

ENGAGEMENT BENEFITS

  • Time-efficient as experienced analysts work on the assignment and client could quickly ramp up the coverage without adding extra capacity at its end.
  • Continuous communication and discussion on interim deliverable meant that the entire team was aligned with the same objective as that of client
  • Focus on data-security and well-defined access structure keeps the data and information security as the same level as is found in the internal team
2018-04-01T15:59:59+00:00