As the title suggests, curious if anyone has insight into the general interview / due diligence process that the larger multi managers (Citadel, MLP, BAM, P72, etc) go through when hiring a new PM, after the initial call or two with BD.
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Based on the most helpful WSO content, here's what you need to know about the interview process for equity PMs at larger multi-managers (MMs) like Citadel, MLP, BAM, and P72:
Interview Structure:
In-Person Interviews:
Deal Discussions:
Asking Good Questions:
Networking and Hustle:
Case Studies:
By understanding these elements, you can better prepare for the interview process at larger multi-managers.
Sources: A Non-Target's Perspective - My MM PE Recruiting Process, A Non-Target's Perspective - My MM PE Recruiting Process, Private Equity Recruiting Process (From Banking), My Private Equity Recruiting Process, Q&A - Starting Post-MBA Megafund PE
From my experience it's largely been focused on:
The industry is small and churn is high so 1 degree of separation likely. As such they'll speak with industry people about you. E.g. former people you worked with (e.g. alumni who overlapped), ER peepz, PB folks, BDs at other places, common contacts, other PMs etc.
Excellent answer, thank you.
“Is the PM a team player”…lol. Tell me when u find one of those
Tell me you got let go without telling me
Can you explain what this means:
It's just a numeric decomposition so the platform gets a sense of what type of idiosyncratic alpha volatility is to be expected when you run risk based on how you've managed your book in the past. Some take intentional style risk and some don't. E.g. long quality vs short value. You'll see it a time series breakdown when you have PNL exposure.
The latter is just how you hedged your bets to express your views, how you sized your position (do you go all out or build over time, do you have full positions over earnings or take risk off and reload over figures). Duration is self-explanatory (avg holding of your longs and shorts). Basically another way of asking about how many times you turn over your portfolio.
PM Meeting:
KeyboardMaster2 PM "Uhm.. yeah I've run KeyboardMaster2 fund for 3 years and during that time I've had a hit rate of 53% and slugging around 1.7x with 40 names on avg in the book. So my average position size is 2.5%. My winners make 10% and my losers -6%. So yeah... my winners make 5.3% and my losers lose around 2.8% (1-53% * avg loss). Therefore I've felt like a sensible stop loss for me to review each losing position is around 0.15% on allocated per position (avg size * avg loss). This should help me catch losers before I hit a drawdown trigger."
Platform Risk Guy: "What's your portfolio turnover like?
KeyboardMaster2 PM: "I generate 4 new ideas per week, so I turnover my book around 6 times per year. So with that in mind you can make around 16% on GMV (avg size x net return x turnover)
All BS numbers obviously....
I gave a detailed reply. For reasons unknown the mod removed it
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