Show solid understanding of the underlying asset and drivers. A firm command of the relevant financial, operational, or macroeconomic context is a prerequisite for any credible investment thesis. Discussion of fundamentals should demonstrate the ability to go beyond “desktop diligence” and draw takeaways that setup a unique and defensible viewpoint.

Demonstrate clear awareness of the prevailing market narrative—whether shaped by sell-side research, media, or investor sentiment—and place the idea in that context. Identify how the consensus view is reflected in current pricing, and where it relies on flawed assumptions, blind spots, or exaggerated risks. Equally important is recognizing positioning dynamics: how crowded the trade is, who owns it, and who is effectively on the other side (i.e. who is selling), along with the incentives or technical factors that explain their stance.Demonstrate clear awareness of the prevailing market narrative—whether shaped by sell-side research, media, or investor sentiment—and place the idea in that context. Identify how the consensus view is reflected in current pricing, and where it relies on flawed assumptions, blind spots, or exaggerated risks. Equally important is recognizing positioning dynamics: how crowded the trade is, who owns it, and who is effectively on the other side (i.e. who is selling), along with the incentives or technical factors that explain their stance.

Make clear what you see differently from the others and why the opportunity exists as a result. What do you know that the seller, or the broader market, disagrees or doesn’t know? Why isn’t anyone else buying—or, if they are, what makes your perspective distinct? The strength of the idea lies in articulating this differentiated insight and showing how it creates a clear basis for the trade.

Demonstrate a clear imbalance between potential upside and downside, supported by explicit probabilities and scenario outcomes. Quantify what can be gained if the thesis proves correct and what is at risk if it does not, showing how the expected value justifies the position. Blind spots and uncertainties should also be addressed, with particular focus on how they translate into potential losses.

Explain why the opportunity is actionable now, identifying the catalysts or developments that are expected to drive a re-pricing. Make clear what will change market perception and over what horizon. If no catalysts exist, explain why that’s also ok.