What to expect in HF PM/Founder Interview?

For your interviews with the HF PM/Founder, here’s what you can expect based on the most helpful WSO content:

1. Stock Pitches Will Be Key

• Be prepared to discuss your stock pitches in detail. Since you already have 4 pitches (3 detailed, 1 high-level), focus on:

  • Investment thesis: Why you chose the stock and the key drivers behind your recommendation.
  • Valuation metrics: Be ready to discuss comps, forward P/E, EV/EBITDA, and other relevant metrics.
  • Risks: Highlight potential risks and how you accounted for them in your analysis.
  • Updates: For the high-level pitch that recently came to fruition, explain the outcome and your thought process.

• Expect to be grilled on your pitches, especially by the Founder or CIO. They may challenge your assumptions, ask about alternative scenarios, or test your ability to defend your thesis under pressure.

2. Case Studies or On-the-Spot Analysis

• Some interviews may include a case study or require you to analyze a stock or sector on the spot. This could involve:
  • A take-home assignment or in-office case study.
  • Presenting your findings and answering Q&A from the team.
• Stick to a clear and concise pitch, isolating 1-2 key KPIs that drive the investment decision.

3. Behavioral and Career-Focused Questions

• Be ready to explain your interest in investing and why their strategy or fund appeals to you.
• For Fund A (global equity), show your understanding of global markets and trends.
• For Fund B (potentially index-focused), demonstrate your ability to think critically about large-cap or index-related strategies.
• Be prepared to discuss your career goals and how you see yourself contributing to their team.

4. Technical and Market Knowledge

• Expect questions on:
  • General market trends and how they impact your investment ideas.
  • Specific sectors or industries you’ve analyzed.
  • How you approach long/short strategies, position sizing, and risk management.

5. Questions for Them

• Prepare thoughtful questions to ask during the interview. Examples include:
  • What is their holding period for investments?
  • How do they decide when to sell?
  • Do they analyze longs and shorts independently or in tandem?
  • How are investments sized and positioned within the portfolio?

6. Impression Matters

• Start the conversation by thanking them for their time and briefly outlining what you hope to learn (e.g., their investment philosophy, feedback on your pitch, career advice).
• Show genuine enthusiasm for investing and their fund’s strategy.
• Don’t hesitate to ask about hiring criteria or internship opportunities if the conversation allows.

Final Tips:

• Allocate time wisely during the interview. A good rule of thumb is 10-15 minutes per topic, leaving 10 minutes for open discussion.
• Be confident but humble. Hedge fund interviews often test not just your knowledge but also your ability to handle pressure and think critically.

Good luck!

Sources: Preparing for the HF informational interview, Preparing for the HF informational interview, Investment Banking to a Hedge fund... Can You Make the Jump?