2 hour Hedge Fund assessment
Hi, I am a college student going through an interview process with this fund and they want me to take an assessment. I would assume this is going to be heavy technical/modeling, not totally sure though.
What resources should I use to prepare, I mean I I have done pitches before I probably lack knowledge in the areas that might be part of a more standardized curriculum.
Based on the most helpful WSO content, here’s how you can prepare for a 2-hour hedge fund assessment:
Stock Pitch Mastery: Since you’ve already done a stock pitch, refine it further. Make sure you can defend your thesis, explain your valuation methods (DCF, comps, precedent transactions), and discuss the pros and cons of your investment idea. Hedge fund interviews often emphasize the quality of your pitch, so ensure it aligns with the fund’s strategy.
Technical Knowledge: Brush up on valuation techniques and basic IB accounting questions. Know how to value a company using the three main methods (DCF, comparables, and precedent transactions) and understand the strengths and weaknesses of each. Resources like the WSO Hedge Fund Interview Prep Course can be invaluable here.
Modeling Skills: If the assessment involves modeling, practice building a basic financial model. Focus on projecting financial statements, calculating key metrics, and performing sensitivity analysis. The WSO Financial Modeling Resources can help you get up to speed.
Market Knowledge: Be prepared for questions on market trends, industry drivers, and investment styles. Start a personal trading account if you haven’t already, as it helps you follow the markets and develop insights you can discuss in interviews.
Behavioral and Fit: Even though you’ve already had a behavioral round, funds often test your ability to think critically under pressure. Prepare short stories that demonstrate your passion for investing, work ethic, and ability to learn quickly.
Due Diligence: Research the fund’s investment philosophy and tailor your preparation accordingly. For example, if they focus on long-term investments, avoid pitching short-term trades.
Mock Assessments: Simulate a 2-hour assessment by timing yourself on tasks like creating a stock pitch, building a simple model, or analyzing a case study. This will help you manage your time effectively during the actual test.
For more detailed preparation, consider exploring the WSO Hedge Fund Interview Prep Course (url: https://www.wallstreetoasis.com/forum/hedge-fund/hedge-fund-careers-get…) and the Stock Pitch Sample Template (url: https://www.wallstreetoasis.com/forum/trading/stock-pitch-sample-templa…). These resources are tailored to help candidates excel in hedge fund interviews and assessments.
Sources: Hedge Fund Careers: Getting a Hedge Fund Job Out of Undergrad and Beyond, Hedge Fund Careers: Getting a Hedge Fund Job Out of Undergrad and Beyond, Stock Pitch Sample Template - Proven Examples to Help Ace Your Interview, Stock Pitch Sample Template - Proven Examples to Help Ace Your Interview, Differentiating yourself for hedge fund recruiting (post-IB)
It’s very hard to know from what you’ve said in your post. If they don’t give you any prep/direction you’ll have to be prepared for anything. If that’s the case, it’s part of the test.
The job is highly unpredictable, can be stressful, and culture / team / fit is very important. So I would not be surprised if they were looking to assess ability yes but also resilience, personality, fit with team/style, and many other things besides.
All that said , bring your analytical ability etc of course, and your investing ideas. But also be yourself as much as possible. Don’t worry about ‘what they want to hear/see’, and be honest/authentic.
There is no point trying to sell yourself as something you’re not: they’ll probably see right through it, and you might end up in a position that’s a poor fit - which will virtually ensure you can’t be successful.
If it goes well and you get hired , fantastic. They want what you bring to the table. If not, it was not meant to be and that is fine. Hedge funds are wildly heterogenous, and there will be another one for sure that will work better on both sides. As a freshman you have a very long runway to find that one!
Thanks this is great advice. Yeah, definitely going to be myself, but that's also why I am very nervous. I met with COO and PM and they seem like great mentors/people and I really like the fund's strategy, and with performance also being great it seems like the ideal HF job. I'm also worried because if Its something like modeling, my excel skills aren't great and though I've improved a lot recently, I'm hoping they take into account that I'll get better in those areas quickly.
Anybody should understand that a person in your seat is not going to be a fully formed investor … and that includes modeling etc. it is about what you bring to the table as a whole package , and whether they think they can work with where you are to bring you along. Teams are small and stakes are high: so if no fit no worries. But if there’s a fit then nobody will (or should) want you to succeed more than they.
It’s natural to be nervous, and that’s fine. Just don’t be consumed by it.
Hi OP, you can try hycalibreDotcom (WSO not allowing me to post link). You can see model tests, case studies - all written by folks that have passed and landed roles. I found it really helpful when I was going to Point72
Thanks this is great, I'll check it out for a bit.
But I am thinking of just going in well-rested and focused as that it was the person from the fund is saying to do, it seems like it won't be fully technical at least. And also from the other person commenting, I don't think they expect me to be perfect, they want to mentor me being I am a freshman. So will probably focus more on cases on how to think rather than modeling purely.
Makes sense. Would recommend reading financial news to be clued up on macro, politics and topical investment news (which I’m sure you already are!). The modelling/tests I do recommend as better to be over prepared and it will stand you in good stead when you get the job and actually start working (or later apply to other funds). In my view, can’t hurt and actually not that expensive relative to what you get paid. Just my two cents, but honestly helped me get to where I am
Also a freshman and am interested on how you were able to get yourself to this position as I'm interested in working at a hedge fund. All advice appreciated.
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