Hey everyone - I have an interview coming up with Balyasny Asset Management for the Associate position (L/S Equity). Can you please shed light on what the process looks like and what their modelling test is about?
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Take home. Gave me a week to model a name they gave me and do a two page write up. Pitched to team the following week.
How do you model a public company? I come from a PE background where the "point" is to get to free cash flow to see what we can pay lenders and exit with. What are you expected to do for HF case studies? Put together a three page model and then how do you show returns?
Look at EPS/EBITDA/FCF, depending on the company (figure out what convention is for that industry). I'd look at absolute and relative returns vs. history for the specific name + a comp. set and lay out a range of outcomes and potential returns. Something like:
I think the company's will guide to $10.00 in EPS in 2021, 10% ahead of what the Street expects currently (and be able to lay out your rationale for why your view of earnings differs from the Street), which should help the company's earnings multiple re-rate from 8x -> 10x, so with 10% upside to forward earnings and a 2x multiple uplift (+25% in this case), I would project a target price of $10 x 10x = $100, 39% above the current price of $72. Then maybe I might probability-weight that upside outcome (25% chance), a base case of $9.50 in earnings x 9x multiple ($85.50 - 50% chance), and a downside case of $8.50 x 7x multiple ($59.5 - 25% chance) to get a probability-weighted target price of ~$83, representing ~15% upside vs. the current stock price.
I'm prepping for citadel, want to bounce ideas off of one another?
FWIW, had a few friends go thru the process for point and they had an in person three-statement / quick&dirty M&A model followed by a brief pitch. Had about an hour or so for the modeling part. Depends on the pod you're testing for so it's totally subjective but just one angle
Bump! Did you join BAM eventually? I have a 6hr case study coming up so appreciate any advice!
I did not. They rejected me after that interview unfortunately.
But 6hr case study seems intense. Good luck with that!!
Hi! I have a 4h case study coming up with BAM. Could you please share any details about your 6hr case? Much appreciated!
Hey guys/girls, after the interview with the BD employee, do they assign you the case study? Or do they conduct more interviews prior to sending the case study?
It is just an intro call.
So currently in a process with BAM. Anyone know how fast typically after PM interview you received the case study? I passed the BD convo, model test and had convo with PM so far who mentioned case study next. It's been 3 weeks since the convo and the BD keeps stalling - is this standard for a pod process?
It’s a no unfortunately
Yea, just wondering why they keep saying need to hear back from the PM instead of just sending an outright rejection - was a positive convo otherwise. Been so slow at each step.
Without knowing the context, keep in mind earnings seasons will delay a process. I'd follow up in a week or two.
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