présentation powerpoint - alphavalue · price momentums. on a monthly basis, deleveraged sector...
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INSTITUTIONAL PRESENTATION
2021
We are independent
We are subscription based, pure investor-pay model.
No financing/banking relations with issuers.
We hold c.32% of negative opinions vs 18% for other research providers.
% of negative opinions
across 15 leading research houses
Source : BLOOMBERG
Data : as of 14th October 2020
by number of Stoxx600 stocks covered with a negative opinion
13%16%
12%
20% 18% 19%21%
6%9%
42%
10%
5%
12%
18%
12%
We deliver
The Thomson Reuters Analyst Awards are recognized as
the gold standard in objective measurement of sell-side
analyst performance.
They measure the performance of sell-side analysts
based on the returns of their buy/sell recommendation relative to industry benchmark.
Year Award
2020 21
2019 8
2018 17
2017 22
2016 10
2015 10
2014 7
2013 13
About us
Founded in 2007, AlphaValue has become the world’s leading provider of
Independent European Equity and Credit Research, helping money
managers to generate ideas and assess the risks and opportunities within
their mid to large cap portfolios.
Our team of 30 leading analysts covering c. 450 stocks across
Europe including 60% of the Stoxx 600, use a proprietary valuation
model to provide a disciplined, consistent research framework.
Proud of our independence – With no execution business or
financing/banking relations with issuers, our recommendations are
agnostic buy vs sell, with an average of 42% of sell
recommendations, at any one time.
We are a research-only house
Equity : large European coverage
464 European stocks60% of Stoxx600 components
AlphaValue stands amongst the leading European equities research houses
in terms of STOXX600 coverage
As of October 14th 2020 – research update less than 6 months old
452425 416 405 403 396 391
360 359 355 345 344302
272
219 209
Credit : 390 issuers tracked
Credit Risk Research on 390 European Corporates
Breakdown by Credit RiskData as of October 14th 2020
INVESTMENT GRADE NON INVESTMENT GRADE
Pure investor-pay model vs. biased issuer-pay model
Cash flow driven, uniquely reactive credit risk research
15
86
121
80
40
169 13 10
AAA AA A BBB BB B CCC CC C DDD
Our Offer
Research Platform
Access the full feature website to get immediate, action driven
answers.
• Live analysts updates
• Daily ideas & Investment Cases
• Sector strategy report
• Portfolio Analytics
• Screening & Mining tools
Analyst Access
Interact and benefit from our 30 experienced analysts.
• In depth sector presentation
• Instant messenger
• Incoming calls
• Monthly meeting
Model Portfolios
We run active and thematic model portfolios to hold ourselves
accountable
• Fundamentals driven, more and less nuanced by market mood
• Weekly review
• Designed on demand
21-25 September 2020Munich Germany
• 224 european companies.
• 750 investors from 35 countries.
• 3,200 meetings in 5 days.
Our Strategic Partner
Baader Bank is one of the largest market makers on Europe's key
stock exchanges as well as off-exchange. Baader Bank is a family-
run, full-service bank with its headquarters in Unterschleissheim
near Munich with around 400 employees.
Baader Bank is a top level Corporate/Investor Access provider in
Europe with more than 420 roadshow days in 2018, across
Europe and North America.
Each year, Baader holds 2 major investment conference in
Europe
16-17 January 2020Bad Ragaz, Switzerland
• 72 swiss companies.
• 200 international investors.
Model Portfolios
Active Portfolio
A 25 stock list actively managed
in a total return objective
• Fundamental Upside
• Price Momentum
Buy & Hold
Identifying companies with a
long term secured growth profile
• Fundamental Upside
• Fundamental Strength
‘Governance Driven’
Companies with a strong
governance score as AlphaValue
proprietary rules
• AlphaValue Governance Score
• Fundamental Upside
Focus on
Learn more:
http://selections.alphavalue.com
Portfolio Analytics
Focus on
Your portfolio analysed
in Alphavalue’s Research Portal
• Instant access to key analytics incl. ESG metrics
• Index or Portfolio weighting options
• Fully confidential
Expertise for Hedge Funds
Focus on
Short & Hold
A 25 stock list actively managed
in a total return objective
• Short only
• Focus on weak fundamentals
Pair Trades
Pair trades based on both momentum and recommendations
ESG Research
Focus on
Effective ESG metrics impact
• Proprietary independent data
• Daily valuation directly impacted by ESG metrics
• All stocks analyzed through the same tools
Strong focus on greenhouse gas emissions.
Governance score based on regular
company contact.
Social score is based on both quantitative and qualitative metrics.
Research Team
FINANCIALS
David GRINSZTAJN
UK & LATIN BANKS
Christian AUZANNEAU
PROPERTY
Farhad MOSHIRI
FRENCH & SCANDI BANKS
Dieter HEIN
FINANCIALS
Bassem NEIFER
INSURANCE
Jorge VELANDIA
HOLDINGS
DEEP CYCLICALS
Kevin VO
INTEGRATED OILS
Fabrice FARIGOULE
STEEL & STEEL PRODUCTS
Varun SIKKA
PAPER, METALS & MINING
Martin SCHNEE
CHEMICALS
Yi ZHONG
AIRLINES
SEMI CYCLICALS
Kulwinder RAJPAL
CAPITAL GOODS
Hugo PATERNOSTER
AEROSPACE
Sejal VARSHNEY
BUILDING & CONSTRUCTION
Ankush KATHURIA
SUPPORT SERVICES
CONSUMER DURABLES
Jorge VELANDIA
AUTOS
Nishant CHOUDHARY
RETAIL
Jie ZHANG
LUXURY
Mohit RATHI
NON FOOD RETAIL
DEFENSIVES
Laura PARISOT
FOOD
Rishabh Kochar
PHARMA
Auguste DERYCKX LIENART
UTILITIES
Jean-Michel SALVADOR
TELECOMS
Sejal VARSHNEY
CONCESSIONS
Virendra CHAUHAN
HEALTH
Surbhit GUPTA
PHARMA
GROWTH
Hélène COUMES – Grégoire HERMANN
SOFTWARE
Sumit SAYAL
HEALTHCARE
Veronique CABIOC’H
MEDIA
Pierre-Yves GAUTHIER
Head
Strategy publications
Key 2020 publications
Q1
Q2
Q3
Research – Know How
What kind of informations analysts are using for fundamental analysis ?
We hold the view that an analyst’s job is to start with careful and challenging reading of
all material released by a given corporate, fill up a demanding spreadsheet focused on
tracking down cash generation, use strict and transparent valuation processes, and
then, and only then, put "on paper" the key words summing up her/his views.
How stocks recommendations are built ?
Recommendations are geared to a “value” approach. Recommendations are based on
target prices with no allowance for dividend returns. Valuations are computed from
the point of view of a secondary market minority holder looking at a medium term (say
6 months) performance. A stock with a target price below its current price should not
and will not be regarded as an Add or a Buy.
How do you determine fundamental upside ?
Valuation processes have been organized around transparency and consistency as
primary objectives. Stocks belong to different categories that recognise their main
operating features : Banks, Insurers and Non Financials. Within those three universes,
the valuation techniques are the same and in relation to the financial and ESG data
available.
What is triggering an analyst update ?
New earnings streams, obviously but just as well business models changes
What is the Price Momentum indicator ?
Momentum analysis consists in evaluating the stock market trend of a given financial
instrument, based on the analysis of its trading flows
What is the Fundamental Strength indicator ?
The "Fundamental strength" is a quantitative and proprietary indicator built on our
financial data and metrics, which aims to qualify a qualitative rating for each stock from
0 to 10 (best rating). This is a long term view
What is the methodology for the Credit Risk indicator ?
The cash flow driven equity research of AlphaValue concludes simultaneously to an
equity view (Recommendation) and to a Credit Risk view that relies on rating agencies
methodologies. AlphaValue credit risk metrics are truly independent and as dynamic as
recommendations
Research – Quality Review
On-going controls
Each new report is flagged to research management with all changes to eps,
DCF, NAV and target price for the equity side of the equation, and all credit
research metrics (quantitative and qualitative) for the risk side.
System rules will shift to an ad-hoc track research showing significant changes
and/or insufficiently explained items. Such research may end up being
recomputed/rewritten.
Built-in quality warnings
Management of research will be warned daily about shifts in recommendations
(whether coming at the analyst initiative or sudden market shifts), and on a
weekly basis about extreme cases (upsides/downsides of more than 30%),
changes in share price momentums.
On a monthly basis, deleveraged sector beta will be recomputed with big
changes highlighted
Modelling
Modelling is strict to the extent that the cash generation anticipated through
the fund flow statement eventually drives next FY equity and the net debt so
that modelling integrity is strong.
Valuation procedures are strict as well with peer metrics only relying on
AlphaValue researched peers and DCF computations leaving only corporate
debt spreads and out year growth as degrees of freedom. SOTP/NAVs are
recomputed daily when assets are listed.
Usage Report - Compliance
Meetings Calls Live chat Emails Readerships
Track and monitor your activity
Quarterly Activity Report
Detailed offer
RPA / CSA ?
AlphaValue has arrangements in place with the following firms to facilitate payment for services :
Barclays, Bernstein, Bloomberg Tradebook, Carax, Citigroup, CM CIC Securities, Crédit Suisse,
Deutsche Bank, Exane, Goldman Sachs, HSBC Bank Plc, Instinet, Investec, ITG, JP Morgan
Securities, Kepler Capital Markets, Linear Investments, Liquidnet, Merrill Lynch, Morgan Stanley,
Natixis Securities, Nomura Securities, SG Securities, UBS.
Request pricing
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BLOOMBERG, FACTSET, THOMSONREUTERS or
CAPITALIQ
WEB - READ ONLY
Website based analytics at will, Live research update,
screenings incl on ESG, analysts’s models etc…
ANALYST CHAT
Live talks with our 30 equity analysts team via website.
Online, Occupied or Offline, our team will always handle
your message with no delay.
MODEL PORTFOLIOS
Pure idea generation. Access « Model portfolios » (total
return and buy&hold) updated on a weekly basis.
DEDICATED SALESDedicated Research Sales
CONFERENCES
Attend AlphaValue’s investment strategy conference 4
times a year.
CREDIT RISK ANALYTICS
Non conflicted credit risk research, only paid for by
investors, covering 400 european issuers.
ANALYSTS ACCESS
Full access to 30 analysts.