Citadel London 5 Hour Case Study info / Tips

Hi all,

Have a case study interview with Citadel pretty soon. Wondering if anyone knows what to expect in terms of financials provided, model expectations etc.

Having done a few searches, is it correct that in a hedge fund modelling test it is common to not do a DCF but instead just do a comps valuation after having built a three statement model?

I don't think I have ever done this in practice - would anyone be able to share how they might go about doing this if given only say a couple of 10-Ks and no sell-side research?

Comments (8)

  • Analyst 1 in IB - Cov
Jan 24, 2022 - 3:12pm

Bump!! 

  • Analyst 1 in IB - Gen
Jan 24, 2022 - 4:40pm

Depends on the PM, but these tests are usually very simple at Citadel

Focus on being able to explain the rationale of your valuation and be careful with being too bullish on your assumptions or you will get destroyed - be realistic

  • Analyst 1 in IB - Gen
Jan 24, 2022 - 4:41pm

FYI Consultants are also given the same test, so you could imagine that it's by no means hard at all

  • Analyst 1 in IB - Cov
Jan 24, 2022 - 6:14pm

In terms of expectations within the time limit (1 hour appears to be debrief, so in reality its 3.5 hours for the model + reading + memo), would you say it'd be expected to build a fully integrated there statements? Or just the revenue build, IS and DCF?

  • Analyst 1 in IB - Gen
Jan 25, 2022 - 6:50am

Fully integrated

In fact, you should be able to build it in 2h if you were fast, so this should be more than enough time to have everything ready, unless you overcomplicate how you build it, which you shouldnt

Jan 25, 2022 - 6:54am
Oz-Medici, what's your opinion? Comment below:

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