A Real & UNfiltered Conversation
Hedgeye Communications analyst Andrew Freedman sat down with Daryl Jones for the 24th episode of Hedgeye | In The Arena.
Freedman storied his unprecedented path to research analyst, discussed his passion for stock picking, his ever-evolving research process and where he stands on his short Netflix (NFLX) thesis.
Click here to download the iTunes version of In the Arena.
Below Freedman shares one of the elements that appealed to him as he switched from covering the Healthcare space to Communications:
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"...the whole ecosystem is getting turned upside down. It's very rare to see that level of disruption occurring across an entire universe of tickers." |
Here is a sneak peak of Freedman's research process:
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"First of all, measure and map the industry from a top down standpoint. I like to think of my processes like the fundamental equivalent of the macro team's process. So what are the major trends going on? Who's taking share? Who's losing share? Who's at risk? What are the underlying unit economics of the industry? What are the structural or secular changes that are going on? And then also being mindful of cyclical components within the secular. If the trend in cord cutting is going to continue, but we have period of time where maybe things look a little bit better than they had been previously how's that going to impact the companies that I track? That's in a nutshell, kind of the top down framework and aggregating company reported information that's a big part of it. Third party data is really helpful too, which I'll get into in a second. And then the second part is the fundamentals. I need my model to really understand where my forward projections are relative to The Street. And I basically try to figure out, okay, well what's priced into the stock today? Where's consensus estimates? Where am I at and do I materially deviate from The Street? And if I do materially deviate from The Street, why is that the case and how much conviction do I have in that?" |
