Hedge Fund (Citadel/P72/BAM) Interview Prep Advice Needed

hedge fund is a pooled investment fund that holds liquid assets and that makes use of complex trading and risk management techniques to improve investment performance and insulate returns from market risk. Among these portfolio techniques are short selling and the use of leverage and derivative instruments.1 In the United States, financial regulations require that hedge funds be marketed only to institutional investors and high-net-worth individuals.

Hedge funds are considered alternative investments. Their ability to use leverage and more complex investment techniques distinguishes them from regulated investment funds available to the retail market, commonly known as mutual funds and ETFs. They are also considered distinct from private equity funds and other similar closed-end funds as hedge funds generally invest in relatively liquid assets and are usually open-ended. This means they typically allow investors to invest and withdraw capital periodically based on the fund's net asset value, whereas private-equity funds generally invest in illiquid assets and return capital only after a number of years.23 Other than a fund's regulatory status, there are no formal or fixed definitions of fund types, and so there are different views of what can constitute a "hedge fund".

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I assume your modeling skills are more than up to par if you’ve been grinding it out in PE so I would spend most of your time on relevant ideas for whichever sector you want. There are some solid posts on here and around the internet that give you a good idea of what they’re looking for on the modeling test. I would also try to shop around at some SMs that have a more private markets style of investing assuming u want more $$$. Most MM PMs will pay you the same amount as someone coming out of IB so get ready for a pay cut.

 

Research Associate in HF - EquityHedge:

I assume your modeling skills are more than up to par if you’ve been grinding it out in PE so I would spend most of your time on relevant ideas for whichever sector you want. There are some solid posts on here and around the internet that give you a good idea of what they’re looking for on the modeling test. I would also try to shop around at some SMs that have a more private markets style of investing assuming u want more $$$. Most MM PMs will pay you the same amount as someone coming out of IB so get ready for a pay cut.


Is this really true? Have seen other threads say 2+2 will pay 400-500

 

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