Recruitment 2013

Analyst, Equity Research

1 | 2010 Transparent Value, LLC. All rights reserved

ABOUT US
Transparent Value Private Limited (hereinafter referred to as Transparent Value India) was incorporated in 2006 at hennai! Tamil "adu with an aim to provide information services to Transparent Value LL ! an asset mana#ement and financial services compan$% Transparent Value LL is head&uartered in "ew 'or(! )*+% Transparent Value Private Limited is a wholl$,owned su-sidiar$ of Transparent Value LL % )tili.in# patent pendin# processes/! innovative technolo#$ and the support of more than 000 12+3or 4+ accredited anal$sts! Transparent Value India -uilds and maintains financial models for 05006 pu-licl$ listed companies% urrentl$! Transparent Value India is operatin# out of two -usiness units in 1indspace! 1alad 7est! 1um-ai%

/ , Transparent Value! LL owns all the intellectual propert$ ri#hts such as trade mar(! service mar(s! e8cel model templates! etc% Transparent Value! LL has filed a patent application with the )nited *tates Trademar( and Patent 9ffice% 4or more details! please visit: http:33www%r-pinstitute%com3le#al,notices3disclaimer%asp8

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Transparent Value LLC

+fter livin# throu#h the dot com implosion! ;nron and 7orld om collapses! mutual fund scandals of the past! and the frustration of the on#oin# research conflicts! the founders of Transparent Value LL simpl$ -elieved there had to -e a -etter wa$ to invest% Transparent Value LL (Transparent Value) was esta-lished in 200< as an asset mana#ement and financial services compan$ see(in# to ena-le investors to see the mar(et clearl$ -$ introducin# a transparent new wa$ to invest% In 200<! the Transparent Value investment methodolo#$ was created -ased on the followin# (e$ characteristics: 0% Transparenc$ 2% ;ase of understandin# <% =is( measurement >% "o research conflicts ?% )nemotional 6% =ules,-ased @% *ell discipline 5% *tron# (nowled#e mana#ement Transparent Value has a hi#hl$ differentiated and disciplined investment approach that see(s to com-ine the -enefits of -oth active and passive investin#% Transparent Value has accomplished this -$ partnerin# with *AP Bow Cones Indices to create the Transparent Value Inde8es *1! which rel$ on Transparent ValueDs proprietar$ =e&uired 2usiness PerformanceE 1ethodolo#$ in their construction% ontinuedF

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Transparent Value LLC

F ontinued

Transparent Value product! the Required Business PerformanceE (=2PE) 1ethodolo#$! see(s to uncover the meanin# -ehind stoc( prices% 2$ usin# the current stoc( price as the primar$ input in its anal$sis! the =2PE 1ethodolo#$ wor(s -ac(wards to determine the li(elihood mana#ement would deliver the =e&uired 2usiness Performance to support the stoc( price% Transparent Value -elieves that (nowin# this also allows us to determine the li(elihood that investorsG s$stematic -ehavioral -iases have caused misali#nment -etween the stoc( price and mana#ementDs a-ilit$ to deliver% The =2PE Institute is the investment advisor$ division of Transparent Value% Its #oal is to provide -oth investment professionals and individual independent investors with the tools to reveal the meanin# of current stoc( prices% The =2PE Institute also serves a portal for access to =2PE +nal$sis Platform (=+P)! an interactive data-ase and decision support tool% The platform includes access to =2PE anal$sis of over 2!000 #lo-al stoc(s and 0!500 mutual funds! ;T4s! )ITs and closed,end funds% It also houses proprietar$ stoc( research! mar(et anal$sis and information a-out Transparent Value investment products and inde8es% In 1a$ 200H! Transparent Value was ac&uired -$ Iu##enheim Partners! a #lo-al diversified financial services firm with wealth mana#ement! capital mar(ets! investment mana#ement! and proprietar$ investin# -usinesses% Iu##enheim Partners clients are an elite mi8 of individuals! famil$ offices! endowments! foundations! insurance companies! pension plans! and other institutions that to#ether have entrusted the firm with supervision of more than J0H0 -illion in assets%

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Investment Met odolo!"#Picking Winners is a Losing Game

I$V%STM%$T PRI$CIPL%S 9ur investment philosoph$ is disciplined and unemotional% 7e capitali.e on the s$stematic -ehavioral -iases of other investors -$ avoidin# those stoc(s we -elieve are most li(el$ to -e irrationall$ overpriced! while our &uantitative selection process prevents us from fallin# victim to such -iases ourselves% 7e feel that consistentl$ pic(in# winners re&uires the a-ilit$ to predict the un(nowa-le future% 9ur investment philosoph$ is therefore to focus on onl$ (nowa-le information! which we -elieve helps us to avoid losers% I$V%STM%$T PROC%SS The =2PE 1ethodolo#$ ena-les Transparent Value to s$stematicall$ appl$ a disciplined! rules,-ased process to each of the core investment functions% &isciplined Researc : Transparent Value anal$sts #enerate the =e&uired 2usiness PerformanceE Pro-a-ilities of more than 2!000 stoc(s accordin# to a strict rules s$stem% &isciplined Portfolio Construction: ;ach Transparent Value portfolio is -ased upon one of the Transparent Value Inde8es *1! which in turn uses the =2PE Pro-a-ilities provided -$ Transparent Value in its construction% These Inde8es follow #uidelines pu-lished in Transparent Value Inde8es *1 rule -oo(s% &isciplined Portfolio Mana!ement: Portfolio re-alancin# onl$ occurs when there is a chan#e in the underl$in# inde8 components% The portfolio mana#er has no discretion! eliminatin# the influence of -ehavioral -iases on his decision ma(in# and creatin# perfect sell discipline%

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' at is Required Business Performance (

7e -elieve stoc( prices are a reflection of the collective assumptions for future performance -$ investors% Kowever we also -elieve these assumptions can -ecome -iased due to investorsD s$stematic -ehavioral -iases! causin# misali#nment -etween stoc( prices and mana#ementsD a-ilit$ to deliver% 7e therefore feel that (nowin# how much revenue #rowth mana#ement must deliver to support the current stoc( price is critical to assessin# the ris( profile and relative attractiveness of stoc(s% This approach is the -asis for our proprietar$ investment methodolo#$% Transparent ValueDs =2PE 1ethodolo#$ aims to lin( a compan$Ds current stoc( price to what its mana#ement does on a da$,to,da$ -asis and its a-ilit$ to deliver in the future% 7e -elieve that investorsD s$stematic -ehavioral -iases can affect stoc( prices causin# a misali#nment -etween the stoc( price and mana#ementDs a-ilit$ to deliver and as a result we -elieve investors often un(nowin#l$ e8pose themselves to -ehavioral ris(! which ma$ hamper returns%

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' at ma)es Required Business Performance unique(

1ost anal$sts and investment professionals see( to determine whether to -u$ or sell a stoc( -$ ma(in# a series of assumptions a-out future performance that often amount to little more than educated #uesses a-out the un(nowa-le future% 2ecause the future is un(nown! this process inevita-l$ introduces a tremendous amount of uncertaint$! and sli#ht chan#es to these assumptions can have a lar#e impact on the final investment decision criterion% 7e -elieve that this su-Lectivit$ often allows investorsD s$stematic -ehavioral -iases to cause stoc( prices to -ecome misali#ned with mana#ementDs a-ilit$ to deliver% This ma(es the =2PE 1ethodolo#$ uni&ue in two wa$s% 4irst! the =2PE 1ethodolo#$ i#nores the uncertain varia-les and chooses to focus instead on what is (nown M the compan$Ds stoc( price and historical financial statements% ;ach Transparent Value anal$st starts with a compan$Ds current stoc( price and wor(s -ac(ward to determine the =e&uired 2usiness PerformanceE to support the stoc( price% 7e -elieve this helps us to identif$ situations in which -ehavioral -iases have caused misali#nment -etween stoc( prices and mana#ementDs a-ilit$ to deliver% *econd! the fact,driven! forecast,free nature of the =2PE 1ethodolo#$ helps to minimi.e the amount of su-Lectivit$ contained in the investment anal$sis process% 7e -elieve this approach prevents -ehavioral -iases from influencin# our anal$sis%

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*no+led!e Mana!ement
Researc Structure , Process The research staff consists of 1ana#ers! Team Leaders! and anal$sts who are divided into teams that cover specific sectors or industries in order to develop e8pertise in those areas% The current polic$ is to limit covera#e to <0 stoc(s per anal$st! which allows for some fle8i-ilit$ to monitor additional names for short periods as re&uired -$ mar(et conditions% +ctual covera#e is #enerall$ -elow the <0,stoc( limit% urrentl$! Transparent Value India trac(s 0!5006 )* pu-licl$ listed companies% Ioin# forward! Transparent Value India intends to cover >!0006 #lo-all$ listed securities across )*! ;urope! Capan and other developed as well as emer#in# mar(ets% Trainin! "ew anal$sts usuall$ start on the first 1onda$ of each month to allow for a standard trainin# process and schedule% Trainin# ta(es appro8imatel$ ei#ht wee(s% Burin# first phase of the trainin# period which spans < wee(s of classroom trainin#! -asics of finance A accountin#! valuation usin# discounted free cash flows! introduction to proprietar$ templates/ and -usiness models is covered% 9n successful completion of first phase! the trainees are mentored on,the,Lo- -$ a *enior +nal$st over a ?,wee( period% Burin# this period! model construction! advanced concepts! impact related to corporate actions A ne#ative 4 4 and -ac(test is covered% Confirmation: 9n successful completion of trainin#! trainees are officiall$ desi#nated as Anal"st- %quit" Researc %

/ , Templates cover followin# industries: ;ner#$39il A Ias! =eal ;state! 2an(in#! Kome 2uilders! 2ro(er Bealers! Insurance! ommercials%
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.o/ &escription
Responsi/ilities: , To -uild and update valuation models on companies under purview% *olel$ responsi-le for companies under covera#e , To anal$.e compan$Ds financial statements and conduct e8tensive research while -uildin# A updatin# compan$ model , To trac( dail$ news releases as well as corporate actions in the companies under covera#e% , To conduct -ac(,test for new as well as e8istin# companies under covera#e Tec nical S)ills: , Proficienc$ in 4inancial *tatement +nal$sis% Thorou#h understandin# of the connection3flow -etween Income *tatement! 2alance *heet and ash 4low *tatements% , Thorou#h understandin# of different valuation methodolo#ies , 4inancial modelin# s(ills , Lo#ical and anal$tical thin(in# a-ilities , Intermediate level (nowled#e of )* I++P accountin# , Proficienc$ in ;8cel and other 1icrosoft 9ffice +pplications , =elevant e8perience (asset mana#ement! e&uit$ research! credit3ris( anal$sis or financial valuation) would -e an added advanta#e% , ;8perience anal$.in# )* companies will -e an added advanta#e% , 7illin#ness to learn and fle8i-le to lon# wor(in# hours , ;8cellent 9ral and written communication s(ills

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Selection Process
Round 0 1Multiple C oice 2uestions3: 60 &uestions in >? minutes Nuestions are -ased on su-Lects such as &uantitative mathematics! economics! financial mana#ement! securit$ anal$sis! lo#ical reasonin#! and portfolio mana#ement% Round 4 1Compre ensive Test3: andidates who have cleared =ound 0 test are eli#i-le to appear for this test This is a >0,minute test% This covers concepts related to valuation and corporate finance% Round 5 , 6 1Tec nical Intervie+3: andidates shortlisted from =ound 2 will -e re&uired to attend either personal or telephonic interview% 2ased on the interviewerDs feed-ac(! there ma$ -e fourth,round of interview with the 1ana#ers% +n offer letter will -e rolled out to the candidates who have successfull$ cleared all rounds of selection process% $OT%: It is mandator$ for all emplo$ees to si#n minimum one (0) $ear of emplo$ment a#reement there-$ assurin# to serve the ompan$ for a minimum duration of 0 $ear% Please note that this is $OT a contractual emplo$ment%

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T7A$* 8OU999
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