Fellas,
My post is not entirely relevant to the banking forum since im interviewing for buyside jobs, but thought it's still worthwhile for the benefit of some monkeys.
Anyway, a bit background, im currently a 3rd year analyst, looking to finish up and move on to the buyside. I've gain some decent momentum, but just short of a solid offer.
This fund is a top 10 hedge fund in the US by AUM. It was the portfolio manager interviewing me and I had already met him once. I hadn't heard back from him after the 1st round, in which it was mostly fit questions plus some general technical. I emailed him basically saying I believe in my abilities and would appreciate another meeting blah blah, and to my delight he agreed.
So earlier today i met him and he said he liked my follow-up/persistence, and wanted to get to know me better (more tech. questions).
He gave me basic financials for two companies, something like this:
Co A:
ROE:25%
Equity: 40
Debt:60
Market cap: 60
Co. B:
ROE: 20%
Equity: 90
Debt:10
Market cap: 135
something like this. And the question was basically, in 10 seconds, which one is a better investment? (B, because A's high leverage and rather marginal ROE difference). And now you can buy either company and recap and do whatever you want, which one was it (not gonna bore you with the details, but I managed to give an satisfactory answer with some calculation on paper, and some hints from him. (still B, need to compare return on asset after more leverage on B).
Then the last part was if B was to buy A (cash vs. stock), is it a good investment or not, so just a quick accretion/dilution calc. (if all stock then yes because B has higher PE).
Anyway,
So he said ok you were better than i thought, so lets meet again next week. This time is more finance related, but next time let's talk about more business related things.
Here's where i need all your help.
I know it's gonna be something like a consulting exercise, strategic considerations, SWOT, blah, but anything specific I should be preparing in a week of time? someone please point me to some case study or such? I don't know how different it is gonna be from today's "finance interview" but im imaging this "business" thing still needs to have some numbers involved.
Would really appreciate the help. I will spill all the beans if i get this.
Thanks a lot!
don't know if you know about this book, but helped me out during case studies.
http://www.amazon.com/Case-Point-Complete-Interview-Preparation/dp/0971…
just gives you the "consulting way" of looking at a problem - It's not that bad of a read, and should help you out if you're in a crunch for time.
Other than that, I would just brush up on dealbook and know that stuff cold so that you can incorporate the lessons learned in the case studies with current events.
Hope that helps, and good luck!
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