L/S Fund Interview Advice
So I have a interview for an entry level position with a long/short equity boutique hedge fund next Monday. What kind of questions should I expect? Any advice/insight would be appreciated!
So I have a interview for an entry level position with a long/short equity boutique hedge fund next Monday. What kind of questions should I expect? Any advice/insight would be appreciated!
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Straight off the top of my head, what buy/sell positions do you like? I remember reading Cramer's "Confessions of a Street Addict" and he said that whenever he asked interviewees about stock positions, 4 out of 5 would give him a blank stare. His next question to them was: "What the hell did you think we were going to talk about, The Knicks?"
You might want to have a few ideas in your pocket particularly regarding sector recommendations. Better yet ask them what sectors they are investing in and see if you can rattle off any positions for them. A friend who interviewed for a well known L/S Equity was shown a "portfolio" and asked what do you like, what should we drop? (with justifications of course)
You may want to talk a little bit about how your investing philosophy matches that of the firm. Are you momentum or value driven etc.
Upcoming Interview with a L/S Value Hedge Fund (Originally Posted: 05/29/2014)
Sorry for the new account. I am starting fresh and I want to protect my identity, I am going to be using this profile going forwards.
I have an interview next week at a L/S Deep Value hedge fund and am trying to figure out what all I should be prepared for. The biggest curve ball for me is that its focus is OUTSIDE the US, so I am spending the next week reading up on the markets abroad and a lot of the relative valuation stuff for the macro aspect and a lot of the current events and political issues. I also am screening CapIQ for specific companies abroad to start digging into a bit so I don't feel ill prepared.
I know there are a couple guys on here who work at HFs and I have talked to before on my old profile, so hopefully one of them find this.
My background is atypical and I really don't want to give out details publicly. I am not from a target school, don't have over a 3.5, and am not from the traditional banking route
You find their holdings yet and try working your way backwards through a few of their investments? Could help you narrow down the search process and construct a small pitch. Looking abroad multiplies the opportunities, but also the issues in finding some gold.
Curious to hear how you got the opportunity. Through networking?
This may sound hurr durr, but get on the phone and try to get conversations with alums working in that area.
L/S equity interview coming: technical questions? (Originally Posted: 11/05/2014)
Hi
I have an interview coming at a L/S equity HF, and it would be very helpful if you guys could list some of the technical questions you've been asked or you know are asked fairly often.
I know this is asked all the time, but after searching online I found that there are very few topics that actually list questions (compared to IBD interview topics for example). Everybody could benefit from it.
PS: I have a corporate finance background, so I assume questions will be fairly technical
Thanks!
Is your interview for the U.S or Asia office? I'm assuming you're interviewing for the analyst role? If so, expect case studies, stock pitches, PMs asking you about why you've selected the stocks so you gotta be able to back it up from valuation to your suggestion.
Networked way into interview: What to expect (L/S Equity)? (Originally Posted: 06/16/2014)
Hi everyone! Last week I posted seeking advice on how to snag a mentor. With your encouragement (and with a reality check), I was able to reach out to the woman I hoped would mentor me.
She got straight down to business. She has her own fund of funds and one of the funds in her portfolio is healthcare L/S equity. Though the fund itself has been around for awhile, it's going through another round of growth and she thought it would be a good opportunity/fit for me. She already wrote a recommendation and sent an introduction; now, I'm meeting with them this week.
What can I expect during the initial meeting? Will it mostly be fit/personality? Is there anything I should specifically prepare for?
I'm honestly pretty nervous and do not want to screw this up.
Look pretty and don't be awkward. The recommendation is probably going to get you pretty far, I'd expect a mostly fit interview. But you know, you could just say something to your mentor like, "thank you so much for recommending me to this fund, I'm really looking forward to interviewing with them! Since you have some background with them, could you share some advice on what I should brush up on for the interview"?
Maybe don't word it exactly like that, but you get the idea.
Really, how pretty do I need to look for an all-male fund? ;)
My mentor sent through all the investor letters. The fund's chairman gave me a call to set up a meeting time, but also reviewed his investment strategy and gauged my interest. He said they're currently raising more funds and would target having me join the team once they're done with that. Also, turns out his nephew is a friend/classmate of mine!
From the phone call, it seems like they just want to get to know me. They also have offered to pull me in for mini-projects if I want to develop more familiarity with their work and buy-side work in general.
I've finally realized the power of networking. I have no buy or sell side experience, but having an advocate who was able to look at my resume/experience as a whole has allowed me to get my foot in the door (and hopefully more).
PM spoon pics for further evaluation.
L/S Equity HF Interview Process (Originally Posted: 12/09/2012)
Hi Guys,
So I'm currently in a sell-side research role at a BB and am trying to make the switch over to a L/S equity fund.
This said, I was wondering what the interview process is like? Understand it varies from take home case studies to on the spot in house modeling test.
More specifically on the in-house tests, what kind of models do L/S equity expect one to perform and also what's the time limit? Figure it's prob different from P/E where it's all LBO.
Would really apprecaite the help! Thanks!
-G
also interested! any comment?
HF's generally have you pitch a stock in the first round, then send you home with a case study (anywhere from a few days to a few weeks) to prepare for a presentation at their offices.
Of course there could be HF's that have it, but in-house model tests are generally just for PE processes. And your'e focusing on the wrong thing. At this point, models should be easy for you. Building a balancing model will do little to impress if it's not backed by sound reasoning and understanding of the company. I'd rather a kid give me a rock solid analysis of the business with a crappy, simple model than a perfect model with nothing to back up the assumptions.
There's a huge amount of information out there on the hedge fund interview process. Posting a question here wouldn't even begin to cover what you need to know and is, frankly, pretty lazy.
I'm interested as well. I've yet to see a solid active thread about L/S interviews specifically.
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