# Report Modes

Use this reference to adapt the initiating coverage workflow to the user's audience and decision.

## Sell-side initiation

Purpose: publishable or publication-style research report for institutional clients.

Required content:
- rating / recommendation framework if requested,
- target price and methodology,
- expected return and rating rationale,
- investment thesis,
- key debates,
- model summary,
- valuation summary,
- catalysts,
- risks,
- compliance/disclosure placeholders.

Tone: polished, client-facing, evidence-heavy, balanced. Avoid sounding like a trade recommendation unless the user wants buy-side framing.

## Buy-side deep dive

Purpose: PM-ready internal research packet.

Required content:
- variant perception,
- risk/reward and expected value,
- what the market is missing,
- positionability and liquidity considerations,
- catalyst path,
- disconfirming evidence,
- sizing considerations if requested,
- explicit monitoring plan.

Tone: direct, skeptical, decision-oriented. Less boilerplate, more debate and falsifiability.

## Long-only initiation

Purpose: determine whether the company can compound capital over a multi-year horizon.

Required content:
- durability of growth,
- moat and competitive position,
- management and capital allocation,
- balance sheet quality,
- reinvestment runway,
- return on incremental invested capital and after-financing cash economics when growth is capital intensive or externally funded,
- capital-stack, lease, and dilution gate when financing obligations matter to the equity case,
- valuation discipline,
- downside protection,
- multi-year thesis milestones.

Tone: quality and time-horizon focused, but not blind to valuation risk.

When the evidence cannot establish capitalization and after-financing returns, use a preliminary or watchlist initiation posture rather than a positive ownership conclusion or unsupported target price.

## Hedge fund initiation

Purpose: decide whether a long, short, pair, event, or catalyst trade should be pursued.

Required content:
- variant view,
- catalyst calendar,
- setup into next prints,
- estimate revision risk,
- positioning/technical context when available,
- downside/upside asymmetry,
- hedge or pair considerations,
- thesis kill signals.

Tone: sharper and less encyclopedic. Every section should tie to return path.

## Credit-adjacent initiation

Purpose: analyze an issuer or public company through a credit lens.

Required content:
- capital structure,
- debt maturity wall,
- secured/unsecured hierarchy,
- leverage and coverage,
- FCF and liquidity,
- ratings/spreads when available,
- refinancing risk,
- downside/recovery considerations.

Tone: cash-flow and protection focused. Equity upside is secondary unless explicitly requested.

## Sector initiation

Purpose: launch coverage of a sector or subsector.

Required content:
- industry structure,
- coverage universe,
- key themes,
- stock selection framework,
- top picks / avoids if requested,
- relative valuation,
- sector KPIs,
- macro/regulatory/technology drivers,
- debate map and catalyst calendar.

Tone: map the battlefield before naming winners.

## Model-first initiation

Purpose: create a model-backed initiation where the workbook and target price are the central deliverable.

Required content:
- model architecture,
- forecast drivers,
- historical normalization,
- consensus bridge,
- valuation methodology,
- sensitivities,
- model checks,
- written investment conclusion.

Tone: assumptions and mechanics first, narrative second.

## Audience Context Modes

Add `long_only_pm`, `long_short_hf`, `sell_side_research`, `etf_index_constituent_diligence`, and `public_equity_diligence`. Fund/product diligence is out of scope; public issuer and constituent diligence is in scope.