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1 | © 2010 Transparent Value, LLC. All rights reserved

Recruitment 2013

Analyst, Equity Research

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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 00 1+3or 4+

accredited anal$sts! Transparent Value India -uilds and maintains financial models for 500 pu-licl$ 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 mars! 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 7orldom 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$ seein# to ena-le investors to see the maret clearl$ -$ introducin# a transparent new wa$

to invest% In 200<! the Transparent Value investment methodolo#$ was created -ased on the followin# e$

characteristics:

% Transparenc$

2% ;ase of understandin#

<% =is measurement

>% "o research conflicts

?% nemotional6% =ules,-ased

@% *ell discipline

5% *tron# nowled#e mana#ement

Transparent Value has a hi#hl$ differentiated and disciplined investment approach that sees to com-ine the

-enefits of -oth active and passive investin#% Transparent Value has accomplished this -$ partnerin# with *APBow Cones Indices to create the Transparent Value Inde8es *1! which rel$ on Transparent ValueDs proprietar$

=e&uired usiness PerformanceE 1ethodolo#$ in their construction%

ontinuedF

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Transparent Value LLC

Fontinued

Transparent Value product! the Required Business PerformanceE (=PE) 1ethodolo#$! sees to uncover the

meanin# -ehind stoc prices% $ usin# the current stoc price as the primar$ input in its anal$sis! the =PE

1ethodolo#$ wors -acwards to determine the lielihood mana#ement would deliver the =e&uired usiness

Performance to support the stoc price% Transparent Value -elieves that nowin# this also allows us to

determine the lielihood that investorsG s$stematic -ehavioral -iases have caused misali#nment -etween the

stoc price and mana#ementDs a-ilit$ to deliver%

The =PE 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 =PE Institute also serves a portal for access to =PE +nal$sis Platform (=+P)! an interactive

data-ase and decision support tool% The platform includes access to =PE anal$sis of over 2!000 #lo-al stocsand !500 mutual funds! ;T4s! ITs and closed,end funds% It also houses proprietar$ stoc research! maret

anal$sis and information a-out Transparent Value investment products and inde8es%

In 1a$ 200H! Transparent Value was ac&uired -$ u##enheim Partners! a #lo-al diversified financial services

firm with wealth mana#ement! capital marets! investment mana#ement! and proprietar$ investin#

-usinesses% u##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 JH0 -illion in assets%

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Investment Metodolo!"#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 stocs we -elieve are most liel$ to -e irrationall$ overpriced! while our

&uantitative selection process prevents us from fallin# victim to such -iases ourselves%

7e feel that consistentl$ picin# winners re&uires the a-ilit$ to predict the unnowa-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 =PE 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 usiness PerformanceE

Pro-a-ilities of more than 2!000 stocs 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 =PE Pro-a-ilities provided -$ Transparent Value in

its construction% These Inde8es follow #uidelines pu-lished in Transparent Value Inde8es*1

rule -oos%

&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 main# 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 stocs% This approach is the -asis for our proprietar$

investment methodolo#$%

Transparent ValueDs =PE 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 unnowin#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 -$ main# a

series of assumptions a-out future performance that often amount to little more than educated #uesses a-out

the unnowa-le future% ecause the future is unnown! 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-ectivit$ often allows investorsD s$stematic -ehavioral

-iases to cause stoc prices to -ecome misali#ned with mana#ementDs a-ilit$ to deliver%

This maes the =PE 1ethodolo#$ uni&ue in two wa$s% 4irst! the =PE 1ethodolo#$ 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 wors -acward to

determine the =e&uired usiness 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#ementDsa-ilit$ to deliver%

*econd! the fact,driven! forecast,free nature of the =PE 1ethodolo#$ helps to minimi.e the amount of

su-ectivit$ 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 stocs per anal$st! which allows for some fle8i-ilit$ to monitor additional names for short periods as

re&uired -$ maret conditions% +ctual covera#e is #enerall$ -elow the <0,stoc limit% urrentl$! Transparent

Value India tracs !500 * pu-licl$ listed companies% oin# forward! Transparent Value India intends to

cover >!000 #lo-all$ listed securities across *! ;urope! Capan and other developed as well as emer#in#

marets%

Trainin!

"ew anal$sts usuall$ start on the first 1onda$ of each month to allow for a standard trainin# process and

schedule% Trainin# taes appro8imatel$ ei#ht wees% Burin# first phase of the trainin# period which spans <

wees 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,o- -$ a *enior +nal$st over a ?,wee period% Burin# this period!

model construction! advanced concepts! impact related to corporate actions A ne#ative 44 and -actest 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 as! =eal ;state! anin#! Kome uilders! roer 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

Tecnical S)ills:

, Proficienc$ in 4inancial *tatement +nal$sis% Thorou#h understandin# of the connection3flow -etween Income

*tatement! alance *heet and ash 4low *tatements%

, Thorou#h understandin# of different valuation methodolo#ies

, 4inancial modelin# sills, Lo#ical and anal$tical thinin# a-ilities

, Intermediate level nowled#e of * ++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# worin# hours

, ;8cellent 9ral and written communication sills

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Selection Process

Round 0 1Multiple Coice 2uestions3:

60 &uestions in >? minutes

Nuestions are -ased on su-ects such as &uantitative mathematics! economics! financial mana#ement! securit$

anal$sis! lo#ical reasonin#! and portfolio mana#ement%

Round 4 1Compreensive Test3:

andidates who have cleared =ound 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 1Tecnical Intervie+3:

andidates shortlisted from =ound 2 will -e re&uired to attend either personal or telephonic interview%

ased 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 () $ear of emplo$ment a#reement there-$

assurin# to serve the ompan$ for a minimum duration of $ear% Please note that this is $OT a contractual

emplo$ment%

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