I have an informal call set up in a few days with a small macro fund set up by a few ex-traders at a BB. Don't really know what to expect -- I cold-emailed and the guy was like "Sure, we can talk" -- but given the informality I figure I better have a damn good answer for why I want to work there and what I can bring to the table. I'm an analyst in debt syndicate and this is a trading-focused firm so I'm not a perfect fit.
There are a lot of reasons why I want to work at a fund but I'm trying to assess what the strongest ones are and what I should/shouldn't say:
1) I want to work somewhere where I can help not only generate ideas, but actually capitalize on them rather than being a passive advisor. I don't just want to present our views to clients but want to actually be able to act on them. [Still trying to think of how to word this better, but is the gist clear? Too much of banking is clients jerking you around and then just choosing a bank with whom they have a better relationship, or not doing the trade at all because status quo is easier for them.]
2) I'm very interested in the market-based parts of my job and want to be more involved there instead of being a second-hand observer.
3) I want to take risk; I like the idea of working at a fund where our success or failure is more in our own hands and not at the mercy of client relationships, credit decisions, etc...I don't feel as if the quality of my work has a direct impact on the success of the group right now.
4) Longer term, I don't see myself as a "client" guy / I want to develop a more technical skillset since I feel my learning curve has flattened out and moving up is more about soft skills
Essentially, though, I love taking views on things and am not just content presenting those views (or parroting those of our research analysts or in-house economists). Moreover, I just hate all the spin we put on stuff -- if a company's shitty, I don't want to massage the CFO's ego; I want to be able to short the shit out of it.
Those reasons are all fine. You should probably also have in mind why the specific fund/strategy/role might appeal to you.
He probably thinks you are going to pitch him product.
Thanks. It's an IG debt fund that plays in rates and derivatives to hedge risk or juice returns. My background is IG debt so im familiar with the market and product, which is why im interested.
He doesn't think im pitching him product since I said im looking for a job.
Yeah he probably doesn't think you are interviewing for a job based on the info you gave us.
I can understand why banking to long/short equities or merger arbitrage would be a logical transition, however working pitchbooks to 'generating ideas' for a macro fund seems quite counter-intuitive. Oh wait, bankers have pedigree....
Do you guys even read the posts here? I explicitly said I was looking for a job when I cold emailed. Moreover, I'm in syndication, not banking, and it's more of an IG debt fund with global macro tendencies than a pure global macro fund.
Just tell them you like hedges, and are also fond of funds, so having a hedge AND a fund all in one place is very exciting.
Or just tell them the reasons you listed, you'll probably be a good fit from the sound of it. Work out a quick summary in your head as well, just in case anyone you talk to isn't the patient type.
Also, why would anyone want to work with NON-investment grade debt, amiright? They call it junk for a reason, folks! Try the veal, tip your servers, I'll be here all week.
Win!
I was told once by a Prop Trader to never use the "I like taking risk" line in an interview without putting the word controlled in-between. People might think you are going to take huge risks and piss away all their money.
Ok you are right I half assed the reading. Good luck!
Why Hedge Fund? - What's your answer? (Originally Posted: 04/10/2013)
At a job interview with your most desired prospective hedge fund employer, your interviewer asks you the question: "Why do you want to work at a hedge fund?" or "What made you want to work at a hedge fund?"
What's your answer?
Depends on several factors, (position - investing/research/management side-, strategies, etcetc.).
interest in the public markets vs private markets
the glam of having bloomberg professional + 4 monitors
To make a lot of money. What else?
Like that's gonna get you anywhere at a job interview LOL
Why hedge fund? Because I'm very passionate about investing and would like to do what I enjoy for a living: 1) Participated in a number of stock competitions in college 2) Read over a dozen of books on investing and have been actively following markets 3) Started trading on my own during the 1st year of banking and was either successful or very lucky (jokingly) with my stock picks (IMO this works only if you buy/sell on your own and your performance is good, both are hard to achieve when you are in banking)
"Why HF?" is actually a very easy question if you are indeed passionate about investing.
Why Hedge Fund Analyst? HELP (Originally Posted: 08/03/2010)
Hey guys,
laugh all you want. I have two interviews tomorrow and haven't been full time employed since Nov '09 (did a four month research internship after and recently wrote CFA III).
I honestly can't come up with a sounding like crap, cheesy answer to this question.
Why do I want to be an analyst on the buy side?
1) I have a deep, genuine passion for the markets and develop trade ideas for private investors on my own time.
2) I want to leverage the experience I have (former full time role was as a risk analyst at a BB in a very hedgie like group) as well as the research experience gained during my internship.
3) I enjoy fundamentally breaking down companies and determining where their competitive advantages lie
4) Enjoy working alongside with investors, speaking to company management etc.
The thing is, I know this answer is not great - possibly just the wording/way I'm describing it but someone please help.
Thanks
I meant I can't come up with an answer that doesn't sound like cheesy crap, if this answer is already out there someone please post link cause I can't find it!
Please....
bump....
I would combine some form of point 1 and point 3. That would presumably lead an interviewer to ask you for a current idea. If you have a good current idea and can talk about it, that will demonstrate that you are actually interested in the position. Also if the fund(s) that you are interviewing with files 13-Fs you may want to look at a couple positions they have and learn something about them so you can ask a question or two about things that they invest in. Finally if you can learn something about the investment style of the fund, then cater your investment pitch to what they do.
Why Hedge Fund? - Comp? (Originally Posted: 05/10/2009)
Why do so many investment bankers and MBB consultants want to go into Hedge Fund? is it for the compensation? If so how much is it?
$10.95/hour
c'mon, seriously
Sorry, don't know. I'd guess its the comp. You could probably make 7 figures after 15 years at a HF.
Relatively less hours compared to banking (but still a lot), and more potential upside in comp. Not sure about the latter these days though.
Oh, and plus, you might actually be able to give your opinion on something instead of just churning out work; hence, the difference between buy vs sell side.
This is essentially buy vs sell side of finance.
Sell side offer great experiences and exit opp, but unless u make to MD/VP u will never be a billionaire
Buy side has less job security, but sky is the limit for comp
If you're smart enough to make it to a billion on the buyside, making it to MD is likely not a concern. What is a concern is that it is almost impossible for an MD to make it to a billion - you realistically would have to be C-level for that, and even then it is rare. Much easier to do once you're running your own fund, as you rather than your shareholders are benefiting from your work - obviously your investors benefit as well, but you can kick them out if you want. At the end of the day, would you rather be taking 2/20 and sending out one letter a year, or working at the mercy of some retiree and her pension fund?
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