I have a first round phone interview with an IVY MBA institution in their investment arm, investing endowments and the university's assets. Any idea what to expect here? I come from a Ibanking background (BB)
Thanks!
Trending Content
| Best Public Markets Gig? ER, MM HF, SM HF, or LO AM? | 13 | 2d | ||
| +43 | How to start a family office (HF rainmaker) | 17 | 1d | |
| +34 | Law to Quant Pivot? | 10 | 2d | |
| +22 | Starting Personal Account | 12 | 1h | |
| +22 | Looking for a Fund Manager to partner with to start a new fund. | 15 | 4h | |
| +21 | People who work at hedge funds, what made you interested initially? | 13 | 20h | |
| +20 | How to destress at Pod HF? | 8 | 14h | |
| +19 | Hedge Fund WLB | 6 | 1d | |
| +19 | HF Final Round Interview | 4 | 4d | |
| +18 | Measuring what I have; getting restless | 5 | 35s |
Career Resources
aren't these usually fund of funds?
Understand the relationship between Fund's investment in direct funds vs Fund of Funds (most large endowments with competent staff typically avoid using FoFs unless funds offered are too small to invest in individually, have a unique social agenda, are out of PM's investment expertise, etc. due to layered fees)
Do they have a safer investment criteria (ie more securities, FI?) or use the Yale method with higher allocation towards RE and PE assets? If so, understanding the L.P/G.P relationship would be important to understand.
It's more about asset allocation and finding out what asset classes are best to invest in versus specific company/security performance. And even within each specific fund, most PM's will call each other from different funds to cross-check how well a G.P is respected, runs their shop, etc. There is much less quantitative work than you'd expect. Very relationship-driven.
Hope this helps paint a better picture.
Disclosure: Used to work for major pension fund
David Swenson talks about his work with Yale's endowment fund here:
http://www.youtube.com/embed/fWAP4hsa9_8
As above, but in addition...
I would try and read up on manager selection. What things you look for in a manager, so focusing on the qualitative side as well as the technical stuff, Sharpe ratio etc. I am sure you do already but know the basic ratios and how to interpret them, know their strengths but particularly know their weaknesses e,g, skew, kurtosis, backward looking and not considering structural non volatility based risks .
I would read up on a few managers, either HF or PE that you like, read up on their investment philosophy and be able to talk convincingly about them - effectively a stock pitch. It would also be useful to have a general idea of what you think makes a great manager.
It would be good to understand the types of managers they go for, if you can't find out in advance try and elicit this during the interview as it will be useful for later rounds. Often they have a preferred 'type' of manager e.g. some focus exclusively on experienced managers they perceive to have an informational advantage, others maybe more focused on getting the brightest new managers.
To add further detail to the understanding the manager selection and oversight element you need to really hone down on the qualitative side. Most will emphasize this over the metrics so be able to articulate qualitatively what you look for in a fund e.g. track record, intimite knowledge of asset class, stable team, strong back office etc. . Also be aware of how managers are incentivised correctly, so fee structure and also making sure they have investments in their funds etc.
It would also be useful to have a basic grasp of the end to end investment process and how it flows from the sourcing of managers to due diligence.
It would also be good to show that you have a critical awareness of managers. So the dangers of style drift and managers using excessive leverage to generate returns - remember they are looking for people that demonstrate a consistent approach to investments. You need to show cynicism and that you appreciate the dynamic that in a lot of cases you will be investing in managers without knowing exactly what the managers are going to be doing with your money.
Finally have an awareness of the fact that if they are an endowment this means they have long term capital and consider investments with lock ins and higher volatility than shorter term investors.
Also obviously a general macro overview.
In terms of fit the only specific advice I would give is to really show you are not overly money oriented. These guys don't generally pay as well as the IBs and so they are ever fearful of training someone up for them to move somewhere else. They have long term capital and generally want to employ people they think will be there for a while. Have a spiel tied down where you can articulate that you are passionate about investing and see the unique long term capital structure of an endowment as being an amazing opportunity to be able to focus on outstanding investments without the fear of liquidity, redemptions that you get at a fof. Also be able to explain why you want to invest in managers rather than directly. (this obv. depends on the endowment). Most of these places ate small so fit is important.
What level is this position?
This is from the experience of successfully interviewing at family offices and SWFs in the UK so should be relevant - obviously depending on the extent to which manager selection will feature in your day to day role.
Aut asperiores voluptatem deleniti dolore vero. Officiis qui voluptas dolores neque nobis dolor porro.
Qui facere qui voluptatum et qui facilis fugiat. Quia cupiditate sequi illo molestiae eius. Dicta repellendus velit architecto sed quas sunt ratione. Nostrum optio unde earum quam aut quo. Quas est unde in minima maiores illum ut.
Incidunt aut labore dolor eligendi sed qui natus voluptatem. Expedita et facilis commodi ut. Aliquam dignissimos ut nihil commodi facilis beatae. Labore asperiores saepe eum quisquam sed officia praesentium eaque.
Magni autem quia voluptas praesentium necessitatibus. Itaque quibusdam esse ab ullam tempore. Perspiciatis dolore tempore veritatis ullam autem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...