Multi-Billion Dollar Hedge Fund

Buy or Short a NASDAQ traded Chinese company

Stage 1 Financial Data Research
Stage 2 Phone Interviews
Stage 3 One-On-One Interviews
Stage 4 Stock Analysis

Background

Our client, a multi-billion dollar hedge fund, wanted to assess the future profitability of a Chinese company traded on the NASDAQ.  CMR's mandate was to conduct in-depth one-on-one interviews with the decision-makers of the target company's largest clients to determine their level of satisfaction with the service, likelihood of switching to competitors' offerings, as well as their budget allocations for the next several quarters.

Stage 1 Financial Data Research

By analyzing financial records, we first winnowed down the target company's client list from 200 to the 20 largest clients in Stage 1 of the project.  We broke down the list by total expenditure and sector so that we could find the best sample group to interview.

Stage 2 Phone Interviews

After determining the target company's major clients, we conducted a series of phone interviews within each client company to locate the key decision-makers in Stage 2. 

Stage 3 One-On-One Interviews

We then conducted in-depth one-on-one interviews with the decision-makers at 20 of the largest client companies in Stage 3.  We analyzed their level of satisfaction with service provided by the target company and why or why not they would continue to allocate budgets towards the company.

Stage 4 Stock Analysis

In Stage 4, we  broke down the results of our interviews by sector and total amount of time the company's had used the target company's services.  Using this information and interview data on likelihood of future use, we gave our client a clear picture of the target company's future prospects. 

Armed with CMR recommendations our client was able to make an investment decision that allowed them to realize a several million dollar ROI.