Equity Research
Equity Research and Investment Theses are the core of MORAM Capital. Our approach is top-down, identifying sectors and industries that can benefit from or be clearly harmed by the economic cycle, with a time horizon of 6 to 30 months. We tend to cover sectors where we have greater expertise, but once a new sector is identified, we either hire or internally acquire knowledge of the new industry in order to analyze it and develop deep equity reports or investment thesis on the actionable Long/Short cases we identify within it.
Once the initial analysis is published, we maintain coverage for the next 12-24 months or indefinitely (depending on how attractive it remains over time), publishing earnings analyses, event analyses, etc., always in the most objective manner possible and offering our opinion on potential strategies to follow with the company, the target price (and a downloadable financial model that we use to reach the valuation), and what to expect from the company and the industry in the coming months.
Our preference is for small cap companies, as we believe that the risk-reward balance is more favourable and they tend to be less covered by analysts. We prioritise quality over quantity. Our team can cover around 30 companies actively.