Expected Knowledge of Risk Management at Multi-Manager Funds as an Associate
When going through the interview process for a fundamental equities investment associate role at a large multi-manager, are you expected to be well-versed on portfolio management concepts such as factor exposure and other risk models?
Currently deciding how much time to delegate toward prepping pitches and resume/behaviorals, vs getting more advanced knowledge on risk management concepts.
Any broader advice on MM interview prep is helpful as well!
Anyone?
No, portfolio construction and risk management are not in your purview at the entry / associate level. Focus on tightening up your story and pitches. Risk models are also not uniform across MMs and portfolio construction will vary by PM.
That being said, I would understand how adherence to a risk model may affect your day-to-day as far as impact it has on investment style and process (to make sure MM is the type of environment you want to invest in). But I wouldn’t go so far as trying to understand the mechanics at the cost of thoroughly preparing on the aforementioned items.
Very helpful - thank you!
I agree. Not expected at the start. But over time, you want to learn this to be more valuable and to consider the impact individual names will have on the portfolio. But don’t come in trying to own that part because it isn’t your job.
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