Hedge Fund Modeling Tests

What kinds of modeling tests have you guys had to do? Do most places just do 2-3 hour three statement models? We’re doing some recruiting and curious to see what other firms have done. I think our hiring process could use work…

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The model is meant to support your investment thesis. It's part of the "case study" for a company which may have several interesting instruments, whether 1L debt or equity that should be bought/shorted.

The more junior the candidate, the more "emphasis" on modelling skills. Note that not everyone went through IBD training and some of the models flying around look like puke. Doesn't mean the candidate is less qualified though. 

 

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