AMA: 2nd Year Equities L/S HF Analyst in Hong Kong

About:

WSO has provided tremendous help at the early stage of my career, even though I have always been studying and working in HK (and yes, WSO has good traction in Asia as well). Back then I always wonder it would be even better if someone can provide me more local insights about HK HF market. So years later, I am here.

Background:

- Finance major at local target school (did 2-year deferral for two one-year placement intern, low GPA)
- 1 year on BB Macro Research Team
- 2.5 years on sell-side single stock research
- Currently a 2nd year fundamental equities L/S HF Analyst (close to USD1bn AuM) based in Hong Kong.

For more details please refer to my previous post.

Happy to answer/discuss on anything regarding to Sell-/Buy-side career.

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Member @MarketBeater shares how he broke into Goldman and eventually a buyside hedge fund role in Hong Kong with a 2.8 GPA. How much he's getting paid now and a key piece of advice to our listeners to stay motivated...

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Comments (11)

Jul 12, 2019

Thanks for taking the time to join the podcast. I enjoyed hearing your story. I am very curious about how you integrated your favorite books onto your resume. Would you mind explaining how you presented that? Also, what are some other books you would recommend reading? I'm looking to follow a similar career path as you, and I love reading anything I can get my hands on.

Most Helpful
Jul 14, 2019

Hi Buffalolad, I put my favourite reading list at the bottom of my resume, together with stuff like skillsets, interest, etc.

My advice will be:
1) make sure you read the books: interviewers always doubt whether you read these books. When I am being asked about this list during interview, interviewers always start with questions likes "which session do you like the most? What is this session about?" to verify whether you read it. If you just flipped through few pages of these books and said it's your favourite, this favourite reading list session indeed can ruin your interview. So make sure you read them;
2) put something not investment-/career-related: put something not investment-related can prove that you are not a boring person to work with. Books about psychology, history, politics, tech/mega trends globally can be good choice as you can always relate these books back to career if needed, while you got something more interesting to talk about during interview;

Before picking your next favourite reading, I think you have to be clear about which direction you want to head to, say if you are interested in Macro/fx trading, then all books by Bernanke/Greenspan are must reads; if you want something more trading-focused, Market Wizards series are good and easy reads to start with; for value investment you can go for Howard Mark's/Charlie Munger's books (/Intelligent Investors, given its reputation in the value investment space, but I personally find this book is quite difficult to fully understand); All the above are some easy reads to start with. For the others I like Rumsfeld's Rules, 7 Habits of Highly Effective People, Thinking Fast and Slow.

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Jul 12, 2019

Thank you for your help. I asked about the books, in particular, because I read a bunch of books that would be viewed favorably by interviewers in the roles I am targeting. If you have yet to read Red Notice by Bill Browder then I would like to suggest it. I think you would really enjoy it based on the other books you mentioned.

Jul 13, 2019

Hi marketbeater, thanks for the AMA.
i have missed your previous post and sent u a pm afterwards as i wanted to know more about the local HF industry. Maybe just a short question here, from your experience do u think research internship (either Macro / single stock) helps u in your daily work in L/S Equities?
And what do u think on SnT and Asset management internship?

haha just an ordinary kid with enthusiasm in the market
-- market-enthusiast/ Hongkonger

Jul 14, 2019

Hi market enthusiast mind dropping me a pm again?

On your questions, I think whether research internship experience help on LS equities HF largely depends on your fund's/boss's investment style. The more value driven/longer-term focused your fund/boss is, the more useful a research internship experience is to your buyside job. Instead, if your fund is more trading/day trade focused, a S&T internship experience could actually help more. Different styles require different skill sets.

Do you mind elaborating more on your questions about S&T or AM Internship? Do you mean the determining factor of choosing between different internship experience, or how is a S&T or AM internship experience like?

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Jul 16, 2019

I know you're in fundamental L/S. But could you give us some names in Event-driven L/S or special sits fund in Asia? Who is the biggest/best player in these categories?

Jul 14, 2019

Your question is hard to be answered, because firstly "best player" is hard to be defined, say 2018 return tripling does not mean it is a good HF and is sustainable. It is also hard to say a HF "is the best" if it is the biggest by AuM, because there are also many HFs with AuM<500mn but with very decent track record, and AuM size is more about managers' fund raising capability. Last but not least, sizable HF usually engages in multi-strategy.

Let's just say if you ask me to name some notable HFs engaging in LS based in Asia (i.e. not global ones like p72/Millenium even if their Asia team perform very well) with a longer track record (with no comment on recent years' performance), I will say the following names cannot be missed: Hillhouse, Segantii, Tybourne, Value Partners, Ichigo, Dymon, Platinum (Australia-based), Graticule, Myriad, SPARX Group, etc.

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Jul 14, 2019

and for Special sit that's not what I am familiar with so sorry I cannot help on that.

Jul 18, 2019

Thanks for the AMA. Curious to hear what do you think defines your edge aka generating alpha?

Jul 14, 2019
Comment
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