Hedge Fund Interview Course

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May 5, 2020 - 5:14pm

Would you mind outlining your career path? Usually when I speak to people at funds they say that there is a very strict path for recruitment and success. Something like this: Undergrad --> IB for 2 or 3 years --> MBA --> Climb at a fund

Thanks!

May 25, 2020 - 7:13pm

i disagree... to an extent. People on this forum are mostly *aspiring * investment bankers, which is cool. But to be honest, there are definitely much better (and even easier) paths to follow if a hedge fund is where you really want to end up.

Most Helpful
May 27, 2020 - 9:41pm

sure man. i'd say vc is great, plenty of vc firms hire analysts straight out of undergrad now. apart from that equity research and consulting. consulting would be the easiest to get in to, i had offers from 3 of the big 4, booz allen, alixpartners along with a few others after graduating with a 2.7.

but most of all, i'd focus on actually investing (starting with a small account is completely fine), learn about portfolio management, position sizing, risk tolerance etc. READ BOOKS READ BOOKS READ BOOKS. there's so much information out there, just don't get intimidated.

lastly, i wouldn't really pay mind to useless posts on wso. people who usually hate or talk down to you on here have miserable lives or really low self esteem or self worth. i had an account on here when i was in college and made a post asking about career opportunities and got shit on haha literally. mostly because i didn't use proper grammar or some shit like that. i still remember one dude said something like 'you're not meant to work in finance'. i've also seen people bashing other poor college kids. sometimes the comments are actually hilarious but at that time it was definitely kind of disheartening haha made me question myself. so don't let anyone belittle you.

even in this thread i think i saw a comment or two about someone saying that this is a fake post. doesn't bother me haha just do you man!

PM me if you need to talk more about your experience specifically.

  • Research Analyst in HF - EquityHedge
May 5, 2020 - 5:57pm

Given the size, is it a fund you founded or one you got hired at?

  • Prospect in ER
May 25, 2020 - 8:42pm

You have stated you took a very unconventional path to being a sub-30 hedge fund PM... can you please specify what things you did to convince your bosses to hire you?

May 26, 2020 - 4:12pm

sexual things?

kidding.

this might sound like a beaten up answer, but passion and genuine interest goes a long long way. For me, I had a blog, a well built personal portfolio, relevant work experience, industry connections etc. but in the end, if you have a solid strategy, understand risk management and can speak on it intelligently... you'll have a really good chance.

May 26, 2020 - 4:18pm

my base is more or less on par (maybe slightly less)

for exit opps, i'm not sure. i have good relationships with management for a few companies so i'm sure that would be a possibility down the line. but again, i haven't thought about exit opps yet

May 26, 2020 - 11:45am

Do you actually know what you're doing?

Not trying to be provocative, it's a serious question. If I was an investor, I would be incredibly hesitant to leave my money with someone who has 6 years of experience in the workforce, 0 of which in an asset management capacity (from your answer above). There is a reason the median PM age is not 28 years old - how do you answer this for investors?

May 26, 2020 - 12:59pm

How do you plan on structuring your book? In a role where many dont get a 2nd chance if they fail the first time around, presumably you want to make sure you dont bomb out before 30? How do you reflect this in your portfolio?

May 26, 2020 - 3:52pm

Whats better for HF exit ops? ER, IB, S&T?

Array
  • Prospect in IB-M&A
May 26, 2020 - 5:27pm

There appears to be little-to-no chance that this post is authentic. I don't think I've ever seen an AMA post on this site with answers that are so vague.

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  • Anonymous Monkey
  • Rank: Chimp
May 26, 2020 - 6:05pm

how important was your undergrad? I'm planning to attend a target school this fall and wanted to know what your path was. Did you do an mba as well? thanks

  • Research Analyst in AM - Equities
May 28, 2020 - 2:08pm

How many people in investing roles at your firm?

May 28, 2020 - 2:17pm

how active of a trader are you? do you day trade in and out of positions?
what type of securities do you invest in / trade? (equities, rates, fx, energy, metals, ags, etc..)
how much leverage do you use?
what is your p&l volatility?

YTD % return on your portfolio?

what is your strategy? what is your edge?

  • Analyst 3+ in IB - Ind
May 29, 2020 - 4:18pm

Thank you for your Q&A.

Excluding comp, why work in a HF over traditional long only asset management? in an environment such as this is a traditional AM not safer for job security etc? What would you say the reasons for choosing HF over AM in this environment?

What is the process/structure of a stock pitch at your fund? How does it work do PMs say ' go put together analysis on this company' or do analysts independently look for companies to pitch to PMs in weekly meetings?

aside from COVID-19 what are some of the things happening right now affecting your portfolio?

How would you hedge against something like COVID-19 happening in the future?

Benefits of a junior choosing a MM over a SM?

Thank you

May 31, 2020 - 4:41pm

There seems to be quite a bit of bitterness from some people on here due to me becoming a portfolio manager at 28. I will make the assumption that most of the people irked by this post either a) climbed the corporate ladder for years to either become PM at a much older age or b) are wanting to get to the buy side but it's seemingly difficult. So it definitely makes sense that they would hate on someone who went to a state school, graduated with a sub 3 gpa.

Just sit back and watch the ticked off people trickle in with their comments attacking my competence, ego and career progression. These are the people that didn't have the intellect nor the drive to get to where they want... they're also probably the ones who tend to blend in with the crowd i.e. not the most ambitious, don't believe they can do the unimaginable or something innovative and believe that the career paths mentioned here are the only way to progress e.g. to get into PE you just have to work in banking for 2-3 years. Come on my guy!

As a note for the younger people and graduating students... networking and knowing the right people will trump your pedigree 100% of the time!

Sorry in advance if i'm slow to respond, my inbox is kind of backed up with messages, but i'll get back to you all eventually.

Thanks!

  • Analyst 1 in S&T - Other
May 31, 2020 - 5:19pm

But where was the usefulness in this AMA - you're criticizing everyone for saying you're a PM at 28 (which is fair because even the best of the best in finance like people who make MD by 30 is 1 in 1000) so far there's no validity in 1. Your identity 2. You've been super vague and you haven't answered a single thing about how you started and landed your role, what type of fund you're at, your strategies or anything else.

These questions could've been answered on here, I'd love to meet a PM who's 28 who couldn't even succinctly answer a simple question on a WSO thread but is answering to LPs.

Hopefully you're answering the PMs people send you better than you did any of this.

May 31, 2020 - 7:30pm

Agree. Zero substance in this BS Q&A. Claims he's rag to riches but wont answer a thing about investment style, portfolio management etc

Kid, if you want to massage your ego, just buy yourself a sports car with all those millions you're making.

  • Prospect in 
Jun 2, 2020 - 9:58pm

How would you say working at a small fund compares to working at a larger fund? What are the pros and cons? Is the the day to day work pretty much the same? Are you making similar comp? Also, how would you compare the modeling you do to modeling done in PE, or an Investment bank? How transferable are the modeling skills across these three industries? Finally, I know you said you worked in VC, how helpful has that experience been for you in your HF?

Jun 3, 2020 - 9:24am
yourfateis:

Portfolio manager at a small fund >$100 MM, ask away...

I probably won't be as active on here, but i'll make sure I get back to everyone!

in the spirit of AMA = "ask me anything" here is my question:

as a PM (portfolio manager), what is your investing/trading strategy and what is your edge in that strategy?

Aug 17, 2020 - 10:44pm

Do most LS funds every make long-term decisions or are all trading decisions entered and exited within a year? How do I develop a good investing strategy that I should use right now that will eventually make me a successful hedge fund trader(I am 14 right now and very interested in investing). Do most hedge funds trade on earnings and try finding companies that will beat street expectations? What else should I do right now that will best position me for doing good in a large hedge fund in the future?

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