The Call @ Hedgeye User Guide
Dear The Call @ Hedgeye subscriber,
What would you see if a premier long-short fund tore back the curtain and was completely transparent and accountable to the individual investor?
That’s why we created The Call @ Hedgeye - to showcase the decision-making process of a world-class hedge fund (only on Hedgeye TV). At Hedgeye we employ 40+ research analysts tasked with scouring all areas of the U.S. equity market for the best long and short ideas.
Our research team features some of the most highly-regarded analysts on Wall Street. Many of them have considerable buy-side experience. With The Call, you get deep-dive investing analysis from our research team, our favorite stock ideas and CEO Keith McCullough’s macro overlay.
Simply put, you will not get this level of granular insight anywhere else.
How It Works
The Call @ Hedgeye is hosted weekday mornings by Hedgeye Founder & CEO Keith McCullough. This exclusive HedgeyeTV production features video highlights from our morning research call. (If you subscribe to The Call @ Hedgeye Plus, in addition to the video highlights, you also receive the complete audio version of our morning research call.)
The Call @ Hedgeye is rich with investing perspective and debate about the timely and topical events impacting our top long and short ideas. Our analysts break down their theses, filter out the noise and provide incremental updates about the big picture catalysts looming largest in the months ahead.
What You Get With The Call @ Hedgeye
Subscribers receive daily access to The Call Plus which includes:
Investing Insights
Our analysts discuss our favorite long and short ideas, providing insight on the upcoming catalysts and break down the just-reported earnings trends impacting the names they are covering.
Macro Overlay
Importantly, you get to listen as former portfolio manager Hedgeye CEO Keith McCullough asks his team of research analysts the important risk management questions impacting these companies.
What are the sectors and companies to go long or short based on the Macro team’s outlook? As head of the Hedgeye Macro team, Keith adds his critical Macro overlay to the conversation.
BOTTOM LINE: The Call provides the “one-two” combination Macro overlay and our research team’s analysis of their favorite long and short ideas to provide the context and conviction you need to make smart(er) investing decisions.
If you have any questions whatsoever, please do not hesitate to email us at support@hedgeye.com.
We look forward to working together!
About Hedgeye
Hedgeye Risk Management is an independent investment research and online financial media company. Focused exclusively on generating and delivering thoughtful investment ideas in a proven buy-side process, the firm combines quantitative, bottom-up and macro analysis with an emphasis on timing. The Hedgeye team features some of the most highly-regarded research analysts on Wall Street, all with buy-side experience, covering Macro, Financials, Energy, Healthcare, Retail, Gaming, Lodging & Leisure (GLL), Restaurants, Industrials, Consumer Staples, Communications, Cannabis, Housing, Materials, Technology, Demography and Washington policy analysis.
The Call @ Hedgeye User Guide
Thinking Like A Portfolio Manager
Our goal since Day One, over a decade ago, has been to level the investing playing field for everyday investors. The Call @ Hedgeye is designed to simulate the decision-making process of a world-class hedge fund.
It’s our aim to help you understand...
  • How do the sharpest investors analyze their favorite long and short ideas?
  • What’s the debate like between analyst and portfolio manager?
  • What are the risk factors (Macro or Fundamental) for investors to consider? And when do these sometimes competing risks outweigh one another?
Hedgeye CEO Keith McCullough hosts The Call @ Hedgeye with our team of 40+ research analysts. This team covers the entire investing waterfront of U.S. equities, everything from Tech and Retail, to Industrials, Cannabis, Energy and much more.
Sector-by-sector, our analysts break down their theses, filter out the noise and provide incremental updates about the big picture catalysts looming largest over the months ahead. Keith probes our analysts about timely and topical events impacting their top long/short ideas. As head of the Hedgeye Macro team, Keith also shares his perspective about the global economy and the resulting factor exposures he’s currently favoring.
Ultimately, Keith (as a former portfolio manager himself) is trying to assess the analyst’s conviction level, the duration over which their call is expected to play out and the risk-reward.
It’s our contention that listening to some of the sharpest minds in finance debate their investing theses will teach you how to more analytically and dispassionately approach your investing more broadly.
The Call @ Hedgeye User Guide
Thinking Like A Fundamental Research Analyst
Financial markets are a zero sum game -- meaning there’s always someone on the other side of your trades. With trillions of dollars swirling around financial markets each day, the question every investor should be asking is what makes you smarter than the person on the other side?
What’s your edge?
Generating differentiated investing ideas is challenging. It’s a full time job. Our team of 40+ research analysts is solely focused on identifying unique investing opportunities with compelling risk-return profiles.
So how does an analyst on our research team generate these differentiated long and short ideas. Below we’re sharing with you an interesting chart breaking this process down to its most elemental level.
It’s all about identifying gaps in Wall Street consensus expectations relative to inflection points in a company’s actual growth trajectory. The best long ideas are identified when the buy-side is most negative (i.e. short interest in a name is high) and sell-side consensus is skeptical (i.e. Wall Street consensus earnings expectations are low).
A positive expectations gap develops and significant alpha is generated when the company delivers the goods. The converse is also true on the short side, when peak optimism pervades the buy-side and the sell-side.
Our all-star research team is unafraid of rocking the boat and is committed to delivering the highest caliber investment ideas through rigorous quantitative, bottom-up and macro analysis with an emphasis on timing.
The Call @ Hedgeye features our analysts discussing their high-conviction stock calls, no-holds barred – meaning if our analysts think a company is a “zero” they say it. It all starts with a differentiated investment analysis, deep sector knowledge and rigorous process.
Fundamental
The Call @ Hedgeye User Guide
Hedgeye's Macro Playbook
Our goal is to give you a foundational understanding —start to finish—of the basics of how we analyze financial markets and identify compelling risks and opportunities. We believe it will amplify your use of all of our investing research products and tools.
This Macro Playbook explains our quantitative models – like our proprietary risk ranges and GDP predictive tracking algorithm – as well as how we select our top investing ideas (stocks, bonds or ETFs). Our repeatable research process has been carefully crafted and refined throughout our decade in the independent research business.
Armed with this framework, we are confident you will make better investing decisions.
Click here to read our Macro Playbook
The Call @ Hedgeye User Guide
Meet Our Research Team
We are obsessed with delivering superior investment ideas. You likely know this by now.
Our hybrid investing approach combines:
  • 1. proprietary quantitative analysis
  • 2. bottom-up sector research
  • 3. top-down macro research with an emphasis on duration.
The end result is an intelligent, high-octane suite of products that draws on insights from over 40 research analysts. We cover everything from Global Macro and Retail, to Energy, Restaurants and Washington Policy research.
Our unique research team at Hedgeye is composed of some of the most highly-regarded analysts in the industry. Our quantitative models and fundamental research teams complement one another.
Here’s how.
1. QUANTITATIVE RISK RANGES
Our quantitative Risk Range model was developed by CEO Keith McCullough during his years as a hedge fund manager.
This Risk Range model is utilized throughout the entire suite of Hedgeye research products to augment our 40+ person research team’s fundamental views. Think about it. All investors have some basket of core investing ideas (stocks, bonds, ETFs or all of the above). Identifying those investing ideas is tough enough, then you have to deal with the uncertainty of markets.
When CEO Keith McCullough built his proprietary Risk Range model the aim was simple: Create a quantitative risk management tool to help investors actually buy low and sell high.
The model uses three core inputs – price, volume and volatility – to determine the likely daily trading range for any publicly-traded asset class. These risk ranges are dynamic. They change as the data changes. At its core, you sell at the top end of the range, and buy at the low end.
Our team of 40+ fundamental research analysts pride themselves on identifying non-consensus investing ideas. We understand that the path from non-consensus investing idea to top-performer is far from linear. The ultimate aim of our Risk Ranges model is to help investors risk manage our analyst’s favorite investing ideas.
2. BOTTOM-UP SECTOR RESEARCH
Our investment research team is headquartered in Stamford, Connecticut. It is made up of research analysts with buy-side and sell-side experience. Our policy research team in Washington D.C. is composed of seasoned veterans with many decades of experience. They possess high-level experience and contacts having worked in a variety of influential positions over the years.
Our goal is simple. Since “Day One” more than ten years ago, our focus has been to build the most thoughtful and thorough team on Wall Street. We seek to translate our unique, combined knowledge into successful investment opportunities for all of our subscribers—big and small.
Our collective investment experience includes time at Carlyle Blue-Wave, Ardsley Partners, Buckingham Research, Morgan Stanley, Dawson-Herman Capital, Wells Fargo Securities, to name a few, while our combined policy experience includes time at the U.S. Court of Appeals, U.S. Energy Department, U.S. Office of Defense, U.S. Federal Reserve, U.S. Chamber of Commerce, and more.
3. TOP-DOWN MACRO RESEARCH
In addition to a deep bench of 19 fundamental equity and Washington policy research teams, our Macro team measures and maps economic data for the top 50 economies around the world, covering 90% of global GDP. We run predictive tracking algorithms for both growth and inflation for each of these economies to forecast the likely path for financial markets.
Bottom Line: Our Macro team is focused on generating investable ideas based on this research that combines their deep study of market history, the tracking of Wall Street consensus positioning and the volatility signals embedded in futures and options markets.
(We encourage you to dig deeper by reading our “Macro Playbook.” )
The combined knowledge of 1) proprietary quantitative analysis 2) bottom-up sector research 3) top-down macro research makes your Hedgeye subscription the best bang-for-your-investing-research-buck out there.