Flow Traders Case Study
Hey all,
I am currently on the final round of the Flow Traders interview process which is their case study. I was wondering if anybody had any experience with the interview and if they could shed some insight on it. I have foraged the internet and have only found that it includes some ETF hedging (proportion calculations), arbitrage calculations, and prepping these calculations to present to a senior trader. I'd love to hear anyone's experience with the assessment. Thanks all.
I am probably the one who posted that. As you can see I did not pass it. Really focus on your ETF hedging knowledge and quick math/arbitrage
Thank you for the insight! If I could ask you a few questions, is the math difficulty similar to what you see on their initial math test? Would you recommend me study more on the concepts of ETF hedging and arbitrage (I already have academic experience with hedging and arbitrage, but not necessarily with ETF hedging) or just practicing hedging calculations?
What resources would you recommend to study ETF hedging ?
bump
Hi, I’m about to have the same case study interview next week. Would you mind sharing the overall process about the on-site interview? Such as, how long would it be, would you allow to use pen and papers, and what types of questions will be asked?
Much appreciated!
How did it go? pls share the kinds of qns to better prepare
Hi, I’m about to have the same case study interview next week. Would you mind sharing the overall process about the on-site interview? Such as, how long would it be, would you allow to use pen and papers, what types of questions will be asked? And also how best to prepare for it?
Any help on this would be hugely appreciated!
Sent u a dm! thanks
Hi I have this interview in a couple of days time as well and was wondering if any of you would be able to provide me with some help as to how to prepare and the kind of questions they asked u?
I sent you a DM
Sent you a dm!
could you sent me a pm as well pls
I will also be doing the case study but virtually.
What kind of hedging calculations does it involve? Will it be about calculating how much of each underlying constituent to hedge or calculating implied liquidity of the ETF based on underlying liquidity etc.?
Thanks in advance for the insight :)
sent u a dm! thanks :)
Aren’t they going out of business?
Their recent performance has certainly been poor and I don't think they are a desirable place to work anymore but I haven't seen any indications that they are at actual risk of going out of business. Last year with 600+ employees they only generated around 300MM euros net trading income but still made 74MM euros normalized profit before tax for shareholders and are paying dividends even if it seems bonuses are very lackluster. I think they are also fairly well capitalized with several hundred millions of euros excess capital.
According to their financial disclosures, they have less than €600m in trading capital yet generated €300m in annualized trading profits. Please tell me what hedge fund gets a 50% return on capital?
The economics of hedge funds and prop trading firms are very different. From what I understand the only hedge funds with 650 employees like Flow Traders would have tens of billions AUM while Flow Traders only has ~ 600MM EUR and has fixed costs around 150MM EUR which is obviously impossible with a hedge fund like management fee and that amount of capital. If you look at average return on equity for shareholders in Flow Traders which is after all the expenses it was around 10% last year compared to a target of 20% which is closer to hedge fund returns (although Flow's market cap is somewhat higher than shareholder equity the percentage returns will not be dramatically different using that number).
I am doing the case interview next week. Does anyone have tips for practicing? I would love to hear them!
Hi, i have the case interview in a couple of days and was wondering if you would be able to provide some help as to what they asked u?
Anyone got insight into their final round case study? No clue what to expect
Hey could you message me any more details?
I am doing this next week- could someone dm me please
How did it go, could you PM me any tips for preparation or resources
Hi, I have the final round coming up, can anyone please help me with the resources or DM me?
Hi! I have this interview coming up and I would really appreciate any advice, especially on where to find practice case studies! Please dm me, thank you
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