Balyasny (BAM) Model Test - help!

Hey guys, 

I have a model test for Balyasny Asset Management (BAM) coming up and I was just wondering if anyone has any info they could share on the test (i.e. three statement? just income statement/BS? BS formulas like Cash Conversion Cycle?). I have severe test taking anxiety so I'm getting really nervous for this and any help would be greatly appreciated. Willing to trade info on other hedge fund interviews/model tests and case studies I've done. 

Thanks in advance.

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Comments (16)

Most Helpful
Nov 15, 2021 - 3:00pm

Cant give you first hand experience, but some reading I have done on WSO tells me that HF modelling tests (so not BAM specifically) are typically a 3 statement model with a DCF valuation and ability to change assumptions / cases easily.

From what I've read, you are either given a week or so to complete a decent model, or like 3 hours to complete a quick model, with the former being the more prevalent (and logical) approach.

More than happy to be corrected by someone with first hand experience, but thought I would share my understanding in any case.

Nov 15, 2021 - 3:14pm

Thank you for the reply! This model test will be timed (~40 min). In this level of time I'm not sure a full 3 statement with DCF would be reasonable unless it included financials with 'fill in the blank style.' 

Nov 15, 2021 - 3:17pm

Jesus Christ, 40 mins? That's insane. All you can do there is a super quick cash flow model with a DCF - assumptions would have to be very basic (eg x% rev growth and EBITDA / EBIT margins at a reasonable Ke).

Can you prep a skeleton model beforehand with formatting / valuation mechanics complete?

Might be somewhat about dealing with pressure vs. the quality of the end product.

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Nov 15, 2021 - 5:20pm

By "decent" I meant something a bit more fulsome given the extra time: full 3SM + DCF, stress-tested, thoughtful / somewhat scientific assumptions, charts dashboard, key outputs across cases, best practice mechanics / architecture with case selectors and both scenario / sensitivity analysis.

In any case, my input on this thread should be considered with limited weight given it is derived from reading WSO etc + my own interpretations, and not from first hand experience.

  • Analyst 2 in HF - EquityHedge
Nov 15, 2021 - 8:53pm

I have never heard of a BAM modelling test as short as 40 mins. Maybe Analysts and Associates have different tests. What position are you applying for?

Either way, if this is something you have to build, focus on I/S / operating model. Thats matters more. If it is fill in the blank style, think of it like Banking interviews 2.0 where you need to know your technicals COLD. Hope this helps.

  • Analyst 2 in IB-M&A
Nov 17, 2021 - 6:49pm

It's light - just a cash flow model with basic valuation using multiples and can't remember about DCF (don't think so but not sure took it a while back). Also some ratios. Wouldn't worry about it too much

Nov 17, 2021 - 9:06pm

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