I have a modeling test coming up with Point72 for a research analyst position on a L/S equity portfolio. Does anyone have an idea what it will be like? Recruiter said it would be a timed, 45 minute exercise.
Also, they mentioned a cognitive test similar to a Wonderlic. Any color on that would be helpful as well.
Congrats for getting at this stage. May I know what have been the previous stages ? I know that P72 like very long processes.
This will be the first step in the process :(
That’s strange, normally there’s a case study for R1. Were you alr in the industry before this?
I did both and made it to next round. I do not have an i-banking background (consulting and VC), so that should give you a sense re the modelling being fairly simple. It was a three-statement model with partially completed parts - basically have to fill it all out using formulas/links between statements. There are various similar tests online if you search “three statement modelling test” or something like that. For cognitive test - also a ton of sample tests online. Do those - it’s more about understanding the type of question and how to respond quick. You’ll see what I mean when you do the sample tests.
Awesome - thanks for the info!
Did the cash flow statement have to be built completely from scratch? Just wondering I what to expect
the 45min model is quite simple and you can probably finish with time to spare. Basically just make everything tie up on the 3 statements and project out.
thanks for the intel!
What level of seniority? Did one last year
The position was advertised as investment analyst by the recruiter. Haven't spoke to anyone from P72 yet. Financial model and wonderlic are the first step in the process it seems.
Have you completed the modelling test ? Was it difficult ?
From my past experience, once you sent them back cognitive test & modelling test, you'll have 45mn interview with the hiring PM(s).
Then if they are interested to continue with you, they'll send you a 7-day case study to do at home.
And finally, a last round of interviews with other investments professionals & Compliance/Risk exec.
Modeling test was not too challenging. It was a fairly simple operating model & DCF. Cognitive test was interesting. I hadn't taken the wonderlic before so I'm glad I prepped for that one. No one has given feedback yet, but I have a call scheduled with one of their biz dev reps in the next few days.
Thanks for the info, very clear. I know they give 72 hours for the cognitive tests but has the modelling test a time limit ?
Modeling test had a 45 minute time limit from when you opened it
How long following the test did you hear back ?
Had a call with a biz dev rep scheduled prior to it the test. Still haven’t had any explicit feedback since submitting
Hi, how did it go?
Any sense if one could run the modelling test NOT on the latest MS Excel version? :)
was pretty simple. would brush up on free cash flow formulas beforehand. not sure on the excel question but the model has quite a few macros running
Hey! Just curious - was this a simple three statement model or does it include DCF? How completed is the DCF...? Do you have to project out debt balance, etc?
Hello did you have another call with the business development following the tests?
Anyone know how harshly they grade these? My balance sheet didn’t tie by low single digits (relative to total BS numbers in the $1,000s) so wondering if that would be an auto-ding still.
What did the modeling test look like for you? Did you hear back?
Did you manage to find out in the end and get through ?
Hey mate, did you hear back from them? I just took the test as well for their modeling test and finished the whole thing in 30 minutes, but balance sheet wasn't balancing....odd
Hi could anyone please share some color especially the 3 statement modeling? I'm curious about the debt part - can we just flatline it and link B/S debt to changes in financing cash flow or do we need to project debt schedules? Appreciate it!
They have this weird component with contribution margin that I candidly didn't understand. Did anyone get that?
Three years of sell side experience and “did not score highly enough” to advance (this was after I had a good convo w the PM). FWIW, I got the balance sheet to balance and most of it was intuitive. Some curveballs were contribution margin calcs and share based comp.
seems like they use the modeling tests as firmwide screeners regardless of positive PM feedback.
If you fail, they wait 6 months to pass until they consider you for new roles.
Pretty funny how these modeling tests are used to filter out the same people who they aggressively headhunt, as if a few minor errors in a timed foreign model directly correlate to alpha generation. I was one the fence to begin with of the op, so definitely advise anyone to fully dial-in because they do seriously require a “high score”
Curious if this was direct lateral or academy. They give the test to everyone?
From the sound of it the revenue build can probably be answered by considering how you would sensitize the revenues etc... Maybe you would also do the same for costs but I haven't seen the test so this is just a random thought that could help someone later.
Model based on key drivers of the specific business/industry and then determine a contributory margin percentage for each major widget within the target for your write-up. Then forecast a low-med-high performance for the largest portions of the target to explain where the largest degree of revenue changes may occur for said widgets based on their relative sales performance.
For the share based compensation I would expect it is essentially normalizing the cash flows of the company to determine it's actual profitability since the stock based compensation distorts free cash flow and earnings.
What’s a contribution margin and why is it impt
Also for SBC just forecast as % of SG&A or follow management guidance (if any), no? And then just make sure it’s reflected in CFO and in Common stock and APIC under B/S
Hi, could you please elaborate on SBC and how it is a curveball?
Helpful, thank
Lateral hire for me. I submitted the 45min model test this Monday and then haven't heard back...not sure how long I should wait for them....anxious.
Have a look at Hycalibre
The Hycaliber one was outdated (the simple 3 statement build that anyone with some decent sellside experience would be able to ace within 20min) and was prolly something they used before the GPT era. My guess is that they made some updates to the modeling test and intentionally made the model more challenging and un-GPT-able.
Taking the test in a week - anyone taken it recently and can give a more accurate picture of what is required?
Trying to understand the level of complexity: is it a straightforward 3-statement build with basic links, or do they expect more advanced elements (working-capital schedules, revolver logic, quarterly forecasting, etc.)?
Curious to hear about an update here
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