Value-added research

Research is at the centre of Gilbert Dupont’s expertise. The research department specia-lises in French Small and Midcaps and considers that a close relationship with companies is a key element for success. Nonetheless, the stocks covered are also analysed in their European or even global context. Whilst specialised along sector lines, the analysts in the research department are imbued with a strong stock-picking culture.

Gilbert Dupont’s sphere of research encompasses all French stocks other than those that form part of the CAC 40 and Next 20 indices. The universe of stocks covered by Gilbert Dupont covers around 150 companies, added to which is a «watch list» of around 50 companies.

Gilbert Dupont’s research, which is aimed exclusively at institutional investors, is available via the company’s website and circulated via most of the specialist channels (Bloomberg, Thomson Financial etc).

As the Gilbert Dupont research department only specialises on the Small & Midcaps segment, all the stocks featured in the universe of companies followed by Gilbert Dupont are subject to a truly permanent coverage.

The quality of Gilbert Dupont’s research is regularly recognised by the specialist rating agencies (AQ, Starmine and Thomson Extel).

Independent and impartial

Gilbert Dupont’s teams are not tied to any exclusivity agreements with corporate finance teams, internal or external. Their decisions about whether or not to participate in any market operation are taken completely independently and are based on the interests of their investor clients. Furthermore, Gilbert Dupont does not take any proprietary positions.

Methodology

In order to grasp a good understanding of the key elements behind the success of the stocks Gilbert Dupont follows, our teams go out into the field. Where possible they endeavour to meet the competitors, the clients and the suppliers to the companies followed so that they can improve their sources of information and provide a real value-added product to our clients.

Creativity

Other than providing simple maintenance coverage of the stocks followed, the research department also aims to promote investment ideas. The analysts at Gilbert Dupont do not hesitate to challenge conventional wisdom. They set themselves the task of finding the Blue Chips of tomorrow and, with this in mind, they generally put greater emphasis on discerning the long-term «story» on companies than dissecting one-off financial performances. Analysts, sales people and the management jointly contribute to seeking out the best investment opportunities.

Objective

The industry expertise of Gilbert Dupont’s analysts, their experience in handling the problems associated with Small and Midcaps and the care they attach to analysis leads them to take a broader view of the messages given by companies.

In addition, the stock market recommendations given by Gilbert Dupont’s research department are based on the results arising from the application of a strict methodology (valuation and investment case).

Experienced sales team

A team of around ten experienced sales people of a number of different nationalities supports the French and foreign institutional client base. Their recommendations, inspired by the work of the research department and by their experience in Small and Midcaps, enables them to provide investors with qualified, independent and value-added advice. Motivated by a passion for Small and Midcaps and active participants in the search for the best investment opportunities, they do not hesitate, when necessary, to attend analysts’ meetings and meet companies that are occasionally outside the research departments’ scope of coverage.

Gilbert Dupont’s client base is largely composed of investors who are either specialised or very active in Small and Midcaps and who either operate as part of dedicated investment management firms or within generalist investment management firms. As a result, our client-base is composed of traditional, alternative and quantitative funds, long only tax savings orientated funds (FCPR, FCPI, FIP), private equity funds and Family Offices.

Pro-active marketing service

Gilbert Dupont maintains close ties with small and medium sized companies in France. Its marketing teams are constantly identifying the best opportunities to unite issuers and investors via:

• one-to-one meetings;
• roadshows in France and abroad (London, Brussels, Geneva etc...);
• site visits;
• industry and thematic seminars.

In particular, Gilbert Dupont was at the origin of events that are now seen as benchmark occasions in the market (Alternext Forum, Healthcare Midcaps Forum etc...

Unbeatable centre of liquidity

Gilbert Dupont has a team of sales traders that are very active in the market for blocs, in France and abroad. Gilbert Dupont has contacts with most of the participants on the French Small and Midcaps market and enjoys large market shares, particularly on the more illiquid stocks (Gilbert Dupont is the leading player on Alternext). Aside from the counterparty opportunities provided by the size and diversity of its portfolio of specialist institutional clients, Gilbert Dupont is in a position to capture the liquidity flowing directly from the issuers.

Gilbert Dupont is continuously performing different operations for issuers and their managers (share buy-backs, disposals of blocs etc).

Expert order execution

Gilbert Dupont has an expert order execution capability, which is totally compatible with the demand of the MIF directive. The «Best Execution» standard is at the centre of our priorities. Gilbert Dupont is capable of trading on the majority of European markets. We possess know-how in «client/broker» trading systems (OMS, FIX etc.) and have a strong expertise in the management of programme trades (RTO, capacity to handle 50,000 orders per day).
The dealing teams at Gilbert Dupont are composed of experienced and specialised professionals who are accustomed to trading carefully in illiquid stocks.

Partner for issuers

Corporate broking service

The corporate broking team contributes a real technical and marketing know-how to companies seeking to do everything to make a success of their listing.

Gilbert Dupont accompanies issuing comp-anies in all the phases of their stock market life: it handles their IPO and handles trading in the stock in order to improve its liquidity and its profile amongst investors.

Experience of market operations

Gilbert Dupont has a strong experience and long history of successful market operations (around fifty deals as of June 30th 2008). Gilbert Dupont acts as a supplier of investment services (Prestataire de Services d’Investissement or PSI) for different kinds of operations:

• IPOs (Euronext, Alternext);
• fund raising deals (capital increases, convertible bond issues etc);
• private placements;
• share placements, disposals of treasury stock.

Openness and independence

Gilbert Dupont is capable of intervening in an independant and non exclusive manner in sponsor listings and with introductory banks reputed for the professionalism of their due diligence. The firm’s leadership position in the Small and Midcaps segment means that it is approached on numerous deals. Access to a large flow of market operations allows Gilbert Dupont to take a very selective approach to deals so that it is in a position to offer good quality stock to investors and make these operations a success.

Know-how in terms of placements

Gilbert Dupont is active at all the stages required for these market operations:

• valuation;
• publication of financial analysis;
• aid in the communication/definition of the equity story;
• marketing (organisation of the roadshow);
• placement of the shares with a large client-base of French and foreign institutional investors.

In particular Gilbert Dupont stands out because of:

• its capacity to organise good quality placements, especially in conjunction with IPOs by combining the creation of a group of core shareholders with the entry of numerous diversified investors in order to maintain a good level of liquidity in the stock once the deal has been completed. This capability results from a characteristic that is relatively unique to Gilbert Dupont: access to an extremely large and diversified client-base of investors in Small and Midcaps (small, medium and large fund management companies, open-ended or closed-ended funds etc);
• its ability to remain a lasting partner to issuers post-deal (long-term financial analysis of stocks, marketing of stocks, secondary placements, liquidity services etc).

Major player in liquidity services

Gilbert Dupont is one of the leading participants in the provision of liquidity services on the Paris market (second in terms of the number of liquidity contracts across all markets). We see this business as a way of developing a real long-term partnership with issuers. Gilbert Dupont puts a dedicated team at their disposal to help improve liquidity on their stock and raise their profile amongst investors. In general, liquidity services include:

• a dealer dedicated to providing liquidity on the stock;
• an undertaking by Gilbert Dupont to Euronext to act as a liquidity provider;
• the promotion of the stock amongst investors;
• coverage of the stock by a financial analyst;
• aid with communication;
• a manager’s report covering the stock market life of the share (daily bulletin, monthly report etc).

In certain circumstances and at the request of managers, Gilbert Dupont is open to offering a bespoke service that includes only some of the services listed above.