In it for the $$$
I am considering a blunt approach for a hedge fund SA interview and want to get your feedback. For the "Why a hedge fund" question I want to just say that I want to make a lot of money (in more eloquent terms) and that the best way to go about that is to make my employer a lot of money and no other industry appreciates this attitude quite like the hedge fund industry - I have the mental capacity to achieve this end so it is a logical choice for me.
Obviously you're supposed to feed them some BS line about how the work would challenge you and use all of your built up skills, but at the end of the day we're in banking (or want to be) to make a shit ton of money not because we're passionate about capital allocation.
Would this approach backfire or do you think it could garner some respect for honesty and understanding of my roll in the game?
To give some perspective, this is for a global HF based in the mid-west.
Bearing in mind that I'm in undergrad, I'd say that's a horrible idea, especially if you're talking with a high up guy. Lots of guys are not in it for the money, and even if they are, they certainly don't want to see a jaded 20 year old asking them for a job. If you already are that much of an asshole that you're doing something just for the money, and don't even mind admitting it, then why should they trust you? Shouldn't they assume you'll either leave or fuck them as soon as you get a chance to make an extra buck? I'm sure you think it's a good idea and will make you stand out, but you're wrong.
NO I wasn't looking for an undergraduate's opinion. Also I'm not sure if admitting that the only reason I would go to work is for a paycheck makes me an asshole - perhaps reconsider your ego/douche-baggery my little banker in training. While at school my friends (and some clients) would give me money to invest and I would take 50% of profits, guaranteeing the money in 'monthly investment periods'. I essentially started a hedge fund and enjoyed it very much, made a lot of money and it paid for most of my school expenses.
I'm pretty sure if I am helping them to generate positive returns that they'll trust me and every other employee doing the same. I think that's how business typically works, I might be wrong. The thing that attracts me (and I would have to assume most people) to Hedge Funds is the heavy emphasis on paid performance and sharing (financially) in the fund's success and failure. Inherent is the loyalty you build for your fund and this why you (and more specifically 'I') wouldn't "leave or fuck them"... whatever that entails.
I'm pretty sure you always want to stand out; I am confident enough in my abilities and beliefs that I don't need to cower when these are questioned. That and I like getting laid.
In short, is there anyone else with some input?
In regard to my 'mental capacity' I was referring more to my 'potential' rather than a literal amount of $ that I think I will make this potential group.
Two things
1) I didn't mean asshole as in you're a bad person - just another way of saying that your character is what some would describe as an asshole. Wasn't judging you. And well I sure am glad to know that my opinion is not valued and that I am a douchebag, I endeavored to offer some advice and will try again. As I see it, you've given the "why hedge fund" answer up above - you started a pseudo-hedge fund in college; you can mention that it enabled you to support yourself, but why not talk about how enjoyable you found the experience of investing the money as well? That's a much better answer than "I want to make money." It tells them something about you, and paints you in an original and positive light.
2) As for you "leaving or fucking them," it means what I said it means. If someone says they're in it just for the moment, how do I know they won't take my LPs and start their own fund? Why should I assume they're going to handle capital responsibly? Why in god's name would you trust someone just because they're making you money, if their only motivation is money? If they're better than me, then they're going to wonder why I'm taking most of their profits, and will look to leave or take my job. If they're not better than me, then they're still probably going to try and take my job, because they'll make more money that way.
But thanks. Calling me a douchebag is always constructive.
ps 50% of profits as an undergrad?
I would recommend not saying that "making money" is your motive for working there. What you are then saying, however honestly, is that the hedge fund is a means to an end (money).
You need to convey your "belief" that working at the hedge fund (or anywhere else for that matter) is the ends in and of itself.
Kant's categorical imperative comes to mind.
You have the mental capacity to make a hedge fund a lot of $? I'm sure you do.
No offense, but if your not in banking as a S.A or analyst your chances of moving to a prestigious buy-side job are non-existent. And if you tell the interviewer you think you can make them a lot of money... actually, say that. It should definitely work. Why shouldn't they take your word for it?
i'm in the buy side, no IBD experience. i summered in the buy side.
but from this experience, i can tell you that a lot of people (as surprising as it may originally be), are not in it for the money at all (this is more salient at the top of the tree). some don't even like to use their money, living in not-too-posh place with a not-too-posh car just because they don't feel the need to waste a lot of money. they enjoy the competition to be better than anyone else at something, it just so happens it's at making money
That's what I mean.
I thought you were calling me an asshole, that's how it seemed, your not a douchebag and I appreciate your feedback.
And yes 50%, I was guarantying them a positive return, no fees, all commission.
no offense, but if I was a senior fund manager and I heard that I would ding you right away. People who are motivated only by long-range secular rewards are going to cut corners while reaching for those rewards. They won't have the passion in their work necessary to resist it! It's human nature! That's why nobody really successful in any industry (EVEN such a money-centric one like HF)is motivated only by money.
I'm curious how were you guaranteeing them a positive return? Or was it just a wishy-washy statement you made to people?
I've heard of another fellow who almost guaranteed you a positive return and probably was in it mostly for the money..
I know that fellow. I think he is now the current girlfriend to a man named Deebo.
Here I am copy pasting what I wrote on another thread (http://www.wallstreetoasis.com/forums/18-year-old-needs-advice), I feel it is relevant to this "In it for the $$$ discussion":
I am an undergrad considering banking. I am not only interested in the path because of money (though that is nice), but also because I like contributing to projects, and the idea of building and increasing effectiveness in the businesses that make the global economy is attractive.
I am a libertarian. What many people (especially my liberal and leftist friends at my university) fail to realize is that capitalism is the natural extension of human nature and progress. Contributing directly is my goal, whether as a banker, entrepreneur, venture capitalist, etc.
How are you guaranteeing a positive return? Was your strategy ridiculously conservative? If so, tough to see how you are beating the market after taking 50% of profits. If you are just offering to make up losses out of your own pocket, why wouldn't you have just invested your own money and taken 100% of p+l instead of 50% of profits and 100% of losses
I have experience at a global HF and I would be willing to be that they will not respond kindly to your "desire" (and hence implied) ability to make them a lot of money. It is essentially walking into a job interview and telling your interviewer that you can do his job just as well as he can despite your lack of any kind of similar work experience. And trust me, if this is any legitimate type of global hedge fund, the trades they put on are based on a little more than the trades of a scottrade day trader during an equity bull-market.
Completely agree on the comments on motivations for senior level employees - also, the only people who got offers from my HF internship were both the most intelligent and capable people, but also the ones who genuinely enjoyed the work the most.
Sorry if that comes across as a bit harsh - but its your type of greedy and myopic attitude towards finance that gives actual employees in a finance a bad rep in the media and eyes of most of this country.
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