Tips on Interviewing for Senior Analyst Role at HFs (Coming from Another HF)

So I've been in my current seat doing event-driven (tilted equity but also credit) for over 5 years, and before that a few years in banking. I have an opportunity to interview at another fund with a similar strategy but has posted better returns / grown AUM / still remains small from an investment team perspective. My guess is they pay well from what I've gathered between other buyside contacts.

I haven't interviewed in so many years - kind of forgotten the tips that got me by when I was in my early 20's. Looking for advice that encompasses:

  • Questions to ask the junior and senior team members to get a feel for culture, investment process / diligence / outputs, what makes the CIO tick, what does the CIO like or not like from an investment perspective etc.
  • Anything else you think is worth knowing having come from a seat I'm comfortable in
  • What is kosher in terms of revealing existing book / names / pitching ideas to them
  • What is different when interviewing as a junior analyst vs. senior analyst at the same HF

Another way said - for all you 30+ year old analysts in both credit / equity; what are you looking for when evaluating a lateral senior analyst hire? What are the checkbox types things you look for and red flags you look for?

 
Most Helpful

I have interviewed a bunch of people over the years. For me, the following are the most important things I look for in a senior analyst are: (1) ability to step into and operate independently in an idea generation and risk taking role; and (2) understanding their investment style and if it aligns with ours (if not, then how far off is it and can it be bridged?); and (3) trying to figure out the real reason why they are leaving (performance vs. something out of their control). 

So a lot of it is about fit, because everyone at this level is smart and capable, has good sector or domain knowledge, and can pick out investments that look interesting to them. It is sifting through the pile of candidates and finding someone who can do things our way. This is contrast to a junior or mid-level analyst where the emphasis is more on technical and research abilities because 80% of their time is spent working on directed ideas and existing names. So, in my own experience, that is the biggest difference. For these candidates, investment acumen / judgment is also important (because we would like them, once hired to eventually step into more senior roles so the potential has to be there), but it is much less of an emphasis. 

 

Very helpful, thank you. Being able to emphasize you can operate Independently / hit the ground running with alignment around how they think vs. how you think seems to be the main thing to focus on.

 

And what about for the 30+ person who can document very good investor performance but has not worked in traditional asset management (I was in commodities quite some time ago and then government).  Would buy side/hedge funds even consider such a person?  I have some other options so don't "have" to do this, but would be curious if they would even talk to me.  Thanks for any suggestions. 

 

Any idea on what kind of comp expectations people should be looking to when thinking about making this type of lateral move? Is making ~1M in a multi-bn event/credit/equity as a senior analyst in your early 30’s low enough to look for lateral roles elsewhere or is that approximately what any other firm will be offering and not worth the fishing expedition?

 

I’d say if you’re in one of these big funds pulling 500k - 1.5m a year (depending on performance), you’re good. The only ppl I see leaving at that level are l/s guys that want at least MSD million payouts by mid30s. You typically only get that at pods. Some have worked out fine. Others not so. But you’ve worked long enough to have some safety net . 

 

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