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India’s First and only truly Global Securities house

FIRST GLOBAL. India’s First and only truly Global Securities house. The Indian firm that out-thinks foreigners at their own game. Building A Global Footprint in the Securities Business. Global presence through membership of major stock exchanges across the world

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India’s First and only truly Global Securities house

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  1. FIRST GLOBAL India’s First and only truly Global Securities house

  2. The Indian firm that out-thinks foreigners at their own game

  3. Building A Global Footprint in the Securities Business

  4. Global presence through membership of major stock exchanges across the world Research is the key driving force

  5. Currently we have Membership of London Stock Exchange Membership of NASDAQ Membership of BSE\NSE Plans for getting membership of other major stock exchanges like Eurex, Xetra, etc. Global Presence

  6. Membership of London Stock Exchange Operation started in FY00 Cost break-even achieved within first 2 months of operation Focus on large institutional clientele comprising Mutual Funds, Hedge Funds, etc. Global Presence Global Presence

  7. Membership of London Stock Exchange Fully operational facilities comprising Dealing desk Back office Equity research through our set up in India Global Presence Global Presence

  8. Full-fledged Investment Bank Broking Services Servicing Blue Chip Long-Only and Hedge Fund Clients across the world Establishment of pan-India retail network The India Business

  9. Today, we trade extensively in stocks like Nokia, Motorola, McDonald’s, Royal Bank of Scotland, Microsoft, Oracle, AMD…

  10. … but beyond Global Presence, we are proudest of …

  11. The basis of our Global Presence … which is intellectual capital We produce the most incisive, most innovative - and often the most controversial research in the business

  12. Research & Intellectual Capital First Global’s words on markets are amongst the most eagerly anticipated, by major Funds, managing trillions of Dollars, across the world

  13. What we are doing today has never been done before by any Indian Company, Infosys included

  14. Research covers Equities, Commodities, Real Estate and Currencies Research Methodologies Fundamental Research Quantitative Research Research set up at Mumbai and Navi Mumbai Research is and will be the key driver for business growth

  15. First Global’s research is regularly quoted in the international media, like the Wall Street Journal, Barrons, Business Week, Forbes, CBS MarketWatch, and several others Research

  16. Like this recent one in Bloomberg Businessweek “Baidu Climbs on First Global’s ‘Outperform’ Outlook” (July 13, 2010) Baidu Inc., the operator of China’s most-used Internet search engine, rose to the highest price in two weeks after First Global rated the shares “outperform” in new coverage. Baidu climbed 5.2 percent to $74.38, the highest price since June 28. The company has climbed 81 percent this year. “The expected growth momentum in online advertising, increased penetration of Internet and broadband connectivity, Baidu’s market leadership in Chinese Internet search, and its high return ratios” are all “great positives,” Devina Mehra, First Global chief strategist, wrote in a report today.

  17. Another Example…this time from SmartMoney “Research in Motion Down”MARKET MOVERSBy Elizabeth Trotta (April 5, 2010) Research in Motion shares were falling on Monday as investors continued to fret about competition. “The globalization of RIMM’s business is acting as a strong growth driver and the company’s strategy of attracting entry level smart phone customers to BlackBerry has been a huge success,” wrote First Global analyst Devina Mehra, in a note on Monday. “However, the heavily promoted Droid and expected introduction of iPhone on Verizon Wireless could hurt RIMM in the U.S. market.”

  18. And another…from The Wall Street Journal“Economists Think Dollar's Fall May Explain the Recent 'Rally‘”By Steve Liesman 06/12/2003“Einstein taught us about relativity in nature. Now come Devina Mehra and Shankar Sharma of First Global to teach us about relativity in financial markets -- and raise some serious questions about just what is driving stock prices.”

  19. A publication of Barrons’ standing called First Global’s US research as “Credible…and quite often, much more than that…”

  20. Our reports often make the ‘Most Popular/Hottest in the world’ list “Dell Gets a Downgrade” HOT RESEARCH PMBARRONS’ OnlineSeptember 08, 2010 First Global slaps the computer maker with an Underperform rating, citing a slowdown in the PC marketplace (Extract) “IN VIEW OF CONCERNS over the weakness in the consumer personal-computer market, possible federal budget cuts and an uncertain macroeconomic scenario, we now downgrade Dell (ticker: DELL) from Market Perform to Underperform.” – Devina Mehra, Mahantesh Marilinga

  21. This is the type of response our Indian research received “Your research is first class. In fact, its better than first class. The kind of financial statement analysis I am getting from you guys, I do not get in any other market from any broker. You guys have no competition. I am very impressed.” Jonathan Asante, Fund Manager at Framlington Asset Management, London “I am impressed. It is the best Indian Research I have seen.” Steven Diamond, Fund Manager at Tidemann Global Emerging Markets, New York

  22. Now we are evoking similar responses in other markets

  23. Some recent testimonials:

  24. “We are impressed by your performance on TIPS.” Anthony Clarke at Marshall Wace Asset Management, the largest hedge funds in the Europe (TIPS is the mock fund management system used by the fund to rate all their brokers worldwide)

  25. “I have been impressed with your calls. Keep them coming. Well Done.”Harry Tyser at Gibbs Tyser Capital, another large European hedge fund

  26. … as well as the most advanced market-timing research in the world – Through our Proprietary Trading Systems – FG-AIMÔ(Agreement in Motion) and FG-AIRSÔ(Agreement in Relative Strength)

  27. First Global’s research, employing cutting edge proprietary fundamental and quantitative techniques, carries high credibility among major institutional investors worldwide, and is known for its away-from consensus stance, and high strike rates.

  28. Our Proprietary Quant System (FG-Systems Family) have successfully called a number of inflection points in markets globally Like before the recent sub-prime crisis, here’s what First Global wrote,“Here’s what the view is, with a 90% confidence level: Volatility is again set to rear its ugly head. And, as is the case, equity markets will tumble. The markets have been set up nicely. And we believe an ambush is around the corner.” (Extracted from “First Global: Global Trading Strategy – Reach for your pain-killers”, dated May 8, 2007)

  29. “It is our case. Nay, stand: Crude Oil will tank (short term bear market rallies notwithstanding) to below $90 by this year-end, and by our reckoning, should hit $50 in the next 12 months’ time.” (Extracted from “Energy: Food for Thought: Oil at $30…don’t be surprised”, dated August 14, 2008) Our call on crude oil prices was bang on target

  30. Our sector calls have seen a consistently high strike rate And The Prophecy continues… • At the start of 2010, we had predicted that the Pharma Index would Outperform. And it did. Since then, the Pharma Index is up 22%, outperforming the NIFTY by 7 percentage points. • Back in June 2009, we had turned bullish on the Auto Index and since then, the BSE Auto Index is up by a huge 117%, outperforming the Sensex by a whopping 77%! • We had turned positive on the Banking Index in April 2010 and since then, it has been up 32%, outperforming the Nifty by 16 percentage points.

  31. The First Edge And we have always been the earliest ones to identify multibaggers that have delivered humungous returns in the US, Europe and emerging markets… • We were positive on Cognizant Technology in June 2010 at its then market price of $53.60. Since then, the stock has climbed up by 20% to $64.20. • And in July 2010, we became bullish on Baidu, Inc., when it was trading at a price of $70.07. Since then, the stock is up 40% to $98.62

  32. …And, of course, in the Indian market • We came out with a Buy on Bajaj Auto in May 2009 at its then price of Rs.470. The stock now trades at Rs.1550, delivering an astounding return of 230% • Our Buy call on Tata Motors in July 2009 at its then price of Rs.392 was bang on target. The stock has climbed up by 195% to Rs.1160 • We had identifies TCS as an outperformer in July 2009 at Rs.434. Since then, the stock has appreciated by 116% to Rs.940 • Back in May 2009, we had turned bullish on Ranbaxy Laboratories at its then price of Rs.262. Since then, the stock is up 115% to Rs.570

  33. And many, many more… We can go on and on… we’ve got it right on stocks like McDonald’s, Nextel, HSBC and many, many others… … of course it takes blood, sweat (and some tears) … … but is also the most intellectually stimulating job around.

  34. Currently we have a young and motivated team of 21+ analysts tracking the US, UK and Indian equities comprising of the sectors – Software, Telecom, Semiconductors, Banking, Bio-tech, Pharma, Oil, Utilities, Retailing, FMCG and Economy Research Coverage

  35. Research Products include Food for Thought Sector Report Accounts Shredder Result Analysis Trading Ideas The Elevator Pitch Call Report Research Products

  36. So how do we do it? • Completely unconventional thought process • Value lateral thinking • Intense focus on theory & concepts - applied to real life • Challenge consensus…even management guidance

  37. FIRST GLOBAL has done pioneering work • in the field of securities valuation which includes • the development of proprietary measures • and • challenging of conventional tools like Beta

  38. So, we have done very well till now … but what’s more exciting is the road ahead

  39. So let’s visualise what you guys could be doing over the next 12-18 months ? • Some of you could be analysing global commodities and indices • Some of you could be covering international tech companies • Some, global autos, global banks, global macro, emerging market bonds ... • Some, advising global companies on raising resources • Some of you could be part of FIRST GLOBAL’s excitement… here and abroad • ...the whole enchilada, as they say!

  40. So what does it take to succeed atFIRST GLOBAL? • Exceptional academic orientation • A drive to be No. 1 - no less • A passion for knowledge • Unconventional, even wacky thinking • Persuasive communication skills • A strong sense of team play • … and a whole lot of hard work

  41. What’s your risk : reward analysis if you joinFIRST GLOBAL? Risks You lose out if you are found wanting in your technique. We have a totally uncompromising attitude towards quality, and don’t tolerate incompetence or complacence. We evaluate people on an absolute scale, not a relative one. So you’ll have to be very, very good to succeed at FIRST GLOBAL

  42. Rewards ? Our philosophy is to start people off on a reasonable fixed base but ... performance based bonuses start, right from Year 1 So, your compensation graph could look like this Compensation Time

  43. Gross Salary (after probation)* Rs. 6.7-10.1 lacs Chummery accommodation Rs. 0.7 lacs (Cost to company) Total - per annum Rs. 7.4-10.8 lacs *incl. 40% imputed bonus Note: Salary during probation (6 months) - Rs. 4.30 lacs per annum (incl. of accommodation of Rs. 0.7 lacs) Remember: Compensation follows performance, not vice-versa. Selected candidate will have to sign an employment bond Compensation

  44. But wait …It gets even better • You will never get laid off, just because some guy in New York says, “Reduce headcount by 20%” • The only thing that you need to do is produce genuinely value-added work • You can actually try out your ideas and put them in action without any straitjackets to hold you back. • No need to play games, politics, or suck up to the boss. So you control your destiny - unlike employees at every other firm worldwide. • All this is because FIRST GLOBAL is a true capitalistic meritocracy.

  45. From the management guru, Peter Drucker “Most management graduates join monolithic companies after their MBAs. After 2-3 years they get frustrated and switch jobs - probably to another monolithic company. Another few years go by, they understand themselves a little better and then maybe during a JV negotiation they realise that if they were working for the faster, sleeker partner, they would actually have far more freedom and decision making authority. That’s when they switch to medium size companies…”

  46. Here’s the knockout punch … In part they went to GE to get job security. But after three years they realise there ain’t no job security at GE.” The point is :Why wait a decade?

  47. So we want to appeal only to those who value all that FIRST GLOBAL stands for - intellect, pure and simple.For the rest, becoming a faceless number-cruncher at a BPO outfit, a bureaucrat at a foreign bank or a bean-counter at a consulting firm, may be a better option.

  48. If you are intelligent, driven by a deep hunger for knowledge, want to do nothing but spend the rest of your life analysing stocks, bonds, commodities and macroeconomics across the world … • ... or want to build the most innovative investment bank in the world • You NOW have a one-stop job

  49. So, do you guys and girls have what it takes ?

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