I have an upcoming 1st round interview at a 10bn+ L/S equity fund which includes a 1/2 hour modeling exam. This seems like a rather short time frame to build a 3-statement and DCF. Does anybody have any experience with short modeling tests for HFs? Would greatly appreciate any insight on what to expect.
Thank you very much in advance.
As an update, an LBO was mentioned, though this seems a little odd for an HF. Perhaps not. Thoughts?
1) HF models are less about the bells and whistles and more about clear, defensible assumptions. No need to build 5 cases, pik toggle notes, or endless data tables.
2) Not trying to freak you out, but you should be able to build a super simple LBO in 30min. Grab a case study off a 3rd year who recruited PE and built from scratch over and over until there's no hesitation. You don't want to spend any of those 30 mins trying balance the bs.
3) Modelling tests are the HF/PE equivalent of asking a banking recruit to walk through a DCF. You're not trying to score points, just not lose any - and it's a test of preparation.
4) Do the above and walk in confident.
5) AAL is the perfect pitch for an interview right now. Figure it out yourself.
Thanks, Semi. Appreciate the advice.
I'll be practicing my LBO's this weekend. I'm so used to spending weeks and all-nights on detailed models that it'll be good to practice just putting down the essential. I'm assuming no B/S?
That's a great point about the models being more about the assumptions. The couple L/S analysts I've talked to didn't seem like modeling was that big of a deal ("all it is is linking statements").
Regarding AAL, is this regarding the Ebola scare? Have read some interesting articles on pros and cons of closing down free trade and flights. I had a couple ideas I'll be refining this week. Would anybody mind opining on pitching an international company that is outside the sector of a domestic industry specific team?
i went through three or four 30-60 minute "modeling" tests at several large $bn+ funds and for the most part it was linking statements and sometimes it required me to make simple assumptions. I would not overly stress about the modeling part of the interview however if you mess up on that you'll probably be done.
Ebola is the opportunity, but it's not the thesis.
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