Sys Two Analytics & Research - Equity Research Associate

Equity Research Associate

Location : Chennai, India

Full/Part Time : Full-Time

Job Summary & Responsibilities :

System Two Analytics & Research (India) Private Limited (STAR) delivers value-added, fundamental analysis and research in the equity market using a disaggregated judgment approach. System Two Advisors, L.P. is an asset management firm that, based on academic findings in decision sciences (cognitive psychology and statistics), combines clinical (fundamental) and statistical (quantitative) approaches to return forecasting.

Our STAR team continually identifies and analyzes financial information, strategic issues, and trends that affect companies, industries, and markets on a regional and global scale. The majority of the division is focused on fundamental equity research, which drives a key part of System Two's return forecasts.

Principal Responsibilities :

Generate monthly ratings to identify investment (alpha) opportunities for stocks on the sector/industry covered, which includes : Sector/industry analysis

- Being an expert on the sector/industry being covered by being well versed on the following :

i. The key issues related to the sector/industry;

ii. The external/global forces that significantly influence the relative strengths/weaknesses of the sector/industry;

iii. Any major trends that are impacting the sector/industry;

iv. Any potential merger and acquisition activity as well as how the competitive landscape is evolving with new products, competitive responses, and potential entrants;

v. The regulatory environment, any potential changes to that environment, and any impact it may have on the companies in the sector; among others.

- Building an archive of insightful sector/industry overviews (provided by external sources) in the collective knowledge repository base that can be referenced by the firm as well as by the analyst individually.

- Having a firm grasp of the companies that make up the sector/industry.

- Assessing and having a good understanding of all aspects that can affect the intrinsic value of each of the companies covered. Specifically in terms of the seven return drivers (i.e., current valuation, future opportunities, sustainable profitability, earnings quality, business momentum, management quality, and financial strength). Additionally other considerations should be assessed like :

i. The critical strengths and weaknesses of each company as well as the outlook for revenues, expenses, and earnings;-

ii. The product mix, geographic exposure, and plans for growth and productivity; an

iii. Any pending lawsuits or potential legal risks for the company; among others.

- Archiving reports that influenced the assessment of the return drivers as well as any particular insightful reports that add to the firm's collective knowledge of the stocks in the universe.

- Consistent and transparent methodology for evaluating securities and deriving the scores (disaggregated judgment)

- Having a good sense of how the defined return drivers are best measured in their respective sector/industry.

- Considering both qualitative and quantitative measures to capture the return drivers and to help in the discrimination of stocks in the sector/industry. Using a methodology of incorporating those qualitative assessments in a structured way.

- Applying a clear and replicable methodology of combining the metrics that go into the rating of each return driver to determine the score for the return driver.

- Continually looking for and identifying additional return drivers (e.g., strategic value and failure risk) that may prove to be critical to evaluating a broad cross-section of stocks in the sector to incorporate into the process; new metrics/factors (both qualitative and quantitative) that will best capture each key return driver, and potential companies to cover that can provide additional alpha opportunities.

- Performing and receiving a monthly peer-to-peer review of the templates to ensure the quality of the monthly ratings.

Rating template :

- Submitting, in a timely manner and without errors, the rating templates, a summary of any significant changes to the ratings with the key reasons for the changes highlighted, and the relative weights of each return driver for each respective sector/industry.

- Using rating template that defines the metrics that go into the rating of each return driver.

- Archiving the corresponding templates that support the monthly scores.

Communicate to the portfolio management (PM) team the rating results and/or changes in the methodology/process/weights/ratings on a monthly basis by :

- Coordinating the follow-up meetings after the ratings have been submitted.

- Drafting summary recaps of the meetings and ensuring the adjustments discussed are implemented.

- Monitor the securities and related sector news flow on a daily basis, communicate to the PM team for any major developments, and respond to requests for information. Major developments may include any stock that were announced to be involved in a merger or acquisition, major earnings changes that resulted in significant price moves, new legal issues, or major changes to management or strategy, among others.

- Provide external fundamental analyses for third parties, such as developing, maintaining, and enhancing financial/analytical models, conducting valuation analysis, and assisting in the preparation of publishing reports summarizing findings and predictions, among others.

- Participate in and assist in the development of prospective client presentations.

Basic Qualifications:

- Basic exposure to equity research.

- Strong ability to perform financial statement, business, and valuation analysis.

- Exceptional analytical thinking ability as well as quantitative and technical skills.

- Excellent written and verbal communication skills in English.

- Sound knowledge of Microsoft Excel. Proficiency in the use of external databases including Capital IQ,

- Bloomberg, Reuters, Datastream, and FactSet a plus.

Preferred Qualifications :

- Strong academic background with degree in economics, finance, accounting, math, statistics, or engineering. CFA qualification is a plus.

- High level of attention to detail; ability to work accurately with a large amount of data.

- Strong ability to multi-task and work with teams.

- Comfortable taking initiative and demonstrating resourcefulness.

- Self-motivated; able to work independently.