Assignment Requirements
Create a thematic memo for one of the hypothetical headlines from the prompt categories.
Candidates pick one hypothetical headline from the list and turn it into an investable theme on the clock (three days from receiving the assignment). Familiarize yourself with our extant thematic primers and memos via citrini.com - your email will be given full access to our archive in advance of receiving the assignment.
Generative AI usage is permitted for research, but not for writing.
Explain the underwritten assumption and mechanism through which the theme plays out
Detail the "tipping point" moment where investors care (and why it tips)
Research topics and concepts that may be unfamiliar until you have a sufficient understanding to explain it in a way that provides ample context for readers as well as a framework for investment
Map first/second/third-order effects (where applicable)
Find where to look in terms of equity returns (whether long, short or both)
Produce an actionable (long, short or long/short) basket with catalysts and risks
Explain why you expect this basket would outperform based on your thematic timeline
Insight & Mechanism (35%)
Clear causal chain; outlined path for obvious implications; non-obvious or non-linear second/third-order effects if applicable (do not reach for them if not)
Rigor (25%)
Policy, standards, and capital-cycle literacy (see our primers "Can You Hear Me Now?" or "Humanoid Robotics" for an understanding of the secular inflection at cyclical prices dynamic in macro-thematic investing); realistic constraints and bottlenecks.
Actionability (25%)
Basket quality (demonstrate an understanding of favorites in-depth), explain broadly why categories of the basket exist and how they are weighted, outline a catalyst path, highlight torque and asymmetry.
Communication (15%)
One-line/one-paragraph hook, concise structure, plain language.
While this tests the ability to creatively synthesize a theme and communicate it, the real test is - always - in the market. While we do not wish for you to standardize your work, the minimum viable product includes:
One-page executive summary (≤250 words) with one-sentence thesis
3-4 page core memo (~1,500 words) covering background, causal mechanism, tipping point and explanation of key concepts. This section should include any figures or charts.
A mapping of impact or framework for investment
A thematic basket (table) showing tickers, role in theme, expected 12-18 month catalyst, position size logic, asymmetric payoff note, and top risk
Restating the headline without a mechanism
First-order thinking only. For example, on the quantum prompt, simply proposing a quantum breakthrough results in the end of cryptocurrency without exploring post-quantum encryption
A lack of macro-level awareness - no supply-chain, regulatory, or capital-cycle read-through
"Data dumps", difficult to follow reasoning and/or convoluted logic. The best theses take significant research but can be summed up in a single sentence. Make your writing crisp, compelling and readable.
Hand-wavy baskets with no thematic exposure framework, catalyst-based views or sizing logic. Is the theme strong enough to "lift all boats" and result in higher returns for names with cyclical overhangs? Or should one favor leaders? Is there a reason for diversification vs. concentration? Does the basket actually capture the theme, or is it just a collection of names touching a specific sub-sector?
Over-indexed to one asset class or sector when cross-asset or cross-industry tells are obvious
You are expected to research as if you were doing so on a real thematic published to the Citrini audience.
The finished product is ideally something akin to a shorter version of our thematic primer pieces - it should demonstrate and articulate understanding of the subject matter, fluency in persuasion and communication (and the tools that enable it, figures, charts and graphs), balanced approach to probabilistic analysis, nuanced understanding of where the opportunity lies in markets, and a high-conviction basket of stocks that are poised to benefit.
When cyclical concerns or valuation constraints are present, use the current market environment as a stand-in. Keep valuation snippets practical (what re-rates and why). Avoid data dumps and overly-dense or common phrasing. The thematic tailwind should drive investors to discover on their own.
For this exercise, you are expected to treat the headline as true. Make reasonable baseline assumptions; state them and then extrapolate them to a thematic investment case that can be expressed with a nuanced basket.
What is a nuanced basket? Simply put, one that captures the theme (i.e. does well if the theme plays out) but also attempts to capture outperformance via a unique view of its path.