HEDGEYE
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.
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 @ Hedgeye 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.
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.