Intern Analyst Interview - Investment Management
I was a senior analyst in my investment club at school and one of our holdings that I liked at the time was Celgene (before the pipeline failure). My thesis was that Celgene had a solid portfolio of 4 blockbuster drugs with patent cliffs far in the 2020's with demonstrated double-digit growth in top line and bottom line. I also mentioned that they had significant cash on their balance sheet which would be useful down the line if they wanted to grow their portfolio through acquisitions of any new and upcoming drugs. , 1. "Draw an income statement"
1. This is pretty easy but I wrote out
Revenue
- COGSs
Gross profit
SGA
RD
Depreciation
Operating Profit or EBIT
Interest Expense
EBT
Tax Expense
Net income , 2. What is your favorite class?
2.Corporate finance. I explained how I had a fantastic professor and some of my closest friends in the group. I went over topics we learned in class such as determining the cost of capital, analyzing free cash flows, modern portfolio theory. These were all topics that I knew were applicable to the internship and demonstrated my interest in finance., 3. What is your biggest criticism of the investment club?
3. I talked about how I think we are severly lacking in risk analysis and just general portfolio management in general. I had built a covariance matrix in preperation for the intevriews and found that there was no risk management in our portfolio. More volatile stocks were given the same weighting as other stocks and we had some exposure to similar spaces in certain sectors of our group. Overall I turned this into my interest of the investment management group and why I wanted to work there to gain that experience.
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