Modeling Test / Case Studies

What are they like for hedge funds? I know the PE ones are straight up 3 statement LBOs but for hedge funds, is it just 3 statement + comps/multiples/DCF to get to share price for a stock or is there something else I'm missing?

Thanks!

 

I'm confused by 2 things here:

1) Why are you modeling out anything for an event driven fund? Your analysis should be more qualitative than quantitative. Think Equity Research analyst vs M&A analyst...

2) You need more clarity. Inquire about what you will tested on. This "modeling" test sounds so vague.

"Cut the burger into thirds, place it on the fries, roll one up homey..." - Epic Meal Time
 
vadremc:
Why are you modeling out anything for an event driven fund? Your analysis should be more qualitative than quantitative. Think Equity Research analyst vs M&A analyst...
Completely disagree, valuation models for event-driven (distressed, merger arb, spin-off, etc) are crucial, otherwise you're just throwing darts. FYI, equity research analysts build models as well.
There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

I'm not sure why they've asked me to do a modeling test, just stating the facts. I figured it was standard for the process. Any input Kenny (and others) of your experiences and how I could prepare myself would be greatly appreciated. I've built many models before but obviously building one from scratch over a compressed time period is different than cranking one out over a few days (and drawing on examples / old models). Any suggestions on things I could practice / focus on would be greatly appreciated.

 

I've worked with models before, and as an analyst at a HF, I think it depends more on what your function is/will be. Also, I did not say that Equity Research Analysts do not build models. But the functions/roles/responsibilities are dramatically different in juxtaposition to an M&A analyst. Being asked to construct a model, and being tested on the implications of select inputs are very different. The former being much more difficult.

 

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