Interview question: Why is this HF better than others?
Hi
I have an interview coming, and this question will probably be asked.
Obviously the answer depends on the HF, but what are the big differentiation factors of a HF?
Thanks
Hi
I have an interview coming, and this question will probably be asked.
Obviously the answer depends on the HF, but what are the big differentiation factors of a HF?
Thanks
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in order of importance
These kids nowadays... It's not all about absolute returns you know.
These kids nowadays... It's not all about absolute returns you know.
I figured if you can't laugh at yourself...
OP I'm sorry I was absolutely no help at all. if I were in the interview I'd just make sure you know the strategy of the fund and philosophy of the parent firm and speak to that.
quoted in case anyone passes this up.
lulz.
I'm assuming you're interviewing for a junior role.
A lot of hedge funds tend to keep it all private and dislike outsiders knowing more about the way the firm operates. Hence don't go overboard giving 10 points. Keep it simple and in my opinion focus on:
I think point three is very important - it can even consist of 3-4 sub points that are not in the press etc. Also, it helps to add in a sell-side reference without dropping a name unless asked for saying the person you spoke with rated your firm and fund highly etc for XYZ reasons (XYZ is very important as it shows substance and not BS). But if numbers etc are private don't mention them as it makes sell-side guy look unprofessional and they will think of you as someone who has a big mouth.
Also remember, it's ok if you don't know fund size or other numbers and key stats. As long as you have an idea is fine. I've seen few people coming and quoting our fund size as some $200m as that's what Bloomberg shows (UCITS and shit like that) but in reality the fund size is $800m+ which was known only to investors. Now imagine how pissed the PM or analysts must be listening to someone reducing their AUM to 25%!!!!!
EDIT: just an addition, after mentioning above if you can tie in how your experiences will add value and how u fit in well will look good. Just be subtle about it. But don't make yourself look like the best candidate by being too direct, they're smart enough to figure that out.
I've never heard anyone ask why is our fund better than everyone else's fund. Know the strategy and what they do.
(Assuming this is for a junior role)
Honesty can work pretty well as long as the guy interviewing you isn't a completely arrogant douchetard, because there's probably only so much you can actually know about the fund, so any 'unique' reasons you come up with are most likely utter bullshit.
You just reel off a few nice things that are true and commonly known (e.g. successful track record, something about their investment philosophy, background of the people, etc), then recognise that you could probably say the same about some other funds, but ultimately this is what you want to do and you think you would be a good fit.
It plays well because many HF guys love to think that they're so sincere / honest / tell-it-like-it-is, because they are soooo above the lying imbeciles on the sellside, plus it'll help you stand out from all the other guys with very generic answers.
Correct answer: "Because hopefully you'll be offering me a position."
Typically there's only one thing that's actually specific to the fund: the people. So maybe talk up the bros that work there - they'll eat that shit up. Obviously not strategy and returns unless you want to bore them to a deep slumber.
1) Strategy--is it long/short fundamental? Credit? Macro?
2) Look through their 13-Fs (whalewisdom is a great resource for this) and look at their positions. What are they buying, what are they selling, etc.Have an opinion here but don't try overdue as they'll know far more about the positions than you
3) Work/Lifestyle can vary tremendously between funds--describe how your personality makes you a good fit for their firm (ie. if it's a small fund, talk about why you enjoy working with smaller teams).
If you could provide more information about the hedge fund you're interviewing at, I'm sure people could assist you with better answers.
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