Pathway to Success

Leverages technology to efficiently analyze data

Understands financial theories to assess risk and return

Monitors and utilizes macro-economic indicators to improve alpha generation

Utilizes forensic accounting techniques to identify anomalies that could help generate alpha

Utilizes statistics to improve alpha generation

Prioritizes time to focus on individual and firm-wide professional goals

Utilizes techniques and strategies to proactively reduce time wasters and distractions

Devotes time to a topic comparative to its alpha-generating potential for the assigned stock or universe of stocks.

Utilizes tools and methods to minimize time required to obtain insightful information

Continues proactive research efforts even when not in the office (e.g. commuting and traveling)

For analysts who lead teams:

Sets recruiting standards and processes that yield the strongest candidates

Trains and develops team members to reach their maximum potential

Effective at automating, delegating, and out-sourcing low-valued activities

Follows ethical standards defined by firm, CFA Institute, and local regulatory body

Communicates in an organized manner that can be followed by others

Identifies and reports potential ethical dilemmas before they become problematic

Helps colleagues in area of expertise even when it doesn’t benefit self

Utilizes good listening skills to obtain information

Reads body language to detect deception

Influences others to accumulate insights and get heard

Quickly identifies most salient information and spots anomalies from documents, presentations, conversations, tables, and charts

Seeks unique insights or perspectives not held by the broad market

Implements processes to verify information accurately

Identifies 2-4 most critical factors for each stock

Models financial statements in a manner to find unique insights

Proactively reaches out to unique information sources to obtain new insights

Continually builds and cultivates network of unique information sources

Leads interviews in a manner that yields new investment-significant insights

Builds forecast so that changes in one financial statement properly flow to each of the company’s other financial statements

Validates data with independent sources when critical to investment thesis

Aware of material changes in the consensus estimate and the cause of the changes

Provides scenario-based forecasting by flexing critical factor assumptions

Creates financial forecasts that are more accurate than consensus

Reviews stocks using more than just the most commonly-used valuation method

For out-of-consensus ideas, identifies the catalyst(s) most likely to bring the consensus view closer to the analyst’s

Knows profiles of stock’s largest owners

Identifies when forecast differs materially from consensus, and can explain the reason for the difference

Utilizes out-of-consensus view to create price targets more accurate than consensus

Understands and avoids the most common psychological pitfalls that impact investors

Leverages technical analysis to enhance fundamental analysis

Utilizes unique price targets and understanding of market psychology to generate alpha

Research to be communicated is expectational, novel, thorough, examinable, and revealing (ENTER™)

Opinion is not misrepresented as fact

Verbal and written communication demonstrate analyst is aware of risks, including issues that could go wrong

Stock-related communications are conclusion-oriented, appealing, stock-oriented, concise, aware, data-driven, and easy-to-understand (CASCADE™)

Considered a highly-effective speaker when communicating stock calls

Aware of buy-side needs not being met by other sell-side analysts

Leverages institutional sales force to distribute new research insights to clients

Matches time spent with client in proportion to fees client pays to firm

Provide clients access to information sources that help to better identify opportunities and risks

Develops new or stronger relationships with profitable clients when they do not exist

Proactively and systematically interacts with priority clients to maximize profitability

Creates product that is highly valued by clients

Dedicates outgoing client call time primarily to share alpha-generating ideas