2-hour Modeling Test for HF (Fundemental Equities) - What to expect?
-I have a final round analyst interview at a fairly well recognized fundamental equities shop in NY. I was told to expect a two hour test and it's likely to concern either a model update or a ground up modeling excercise.
-The PM will then decide based on what you produce and the fit you bring to the table. From my understanding the PM is an incredibly meticulous fundamental guy.
-Does anybody have a rough idea as to what SHOULD be attainable in this timeframe if it's a ground-up build?
Just the usual 3 statement + DCF?
Large PE shop experience, but the lbo models I built were relatively simple and could always use aids like and previous templates obviously; this is out of the question here, so I'm sort of biting my nails off...
Any help is appreciated. Trying to avoid a major embarassment.
Following, curious as well
Same ^^^
Probably a revenue or cost build
.
Interesting take. Thanks.
The old SAC modeling exam consisted of 3 statements with each having some line items missing and you had to fill the historicals for those missing values and also project out. That tests both your accounting knowledge as well as forecasting ability.
Not saying that's what you'll see, but others have copied that approach.
Another one is to stick you in a room with transcripts, press releases, and K's/Q's and have you do a stock pitch. That one takes longer so I don't think 2 hours wouldn't be enough.
Will get a hedge fund analyst model test this week (Originally Posted: 08/31/2014)
Healthcare/Life sciences - does anyone have similar experience ? could you please share your experience or the model?
Thanks!
I'm in a similar situation with the test on Tuesday. Can you PM me to share your experience and how the test went?
Key is to use logical assumptions and keep it simple. My typical 3 statement model covers everything below the IS in 100 lines - and that includes lines for key metrics like ROIC, etc. Except in rare situations most of the differentiation will be in how you model the key IS items (top line/ cost) unless its distressed or special sits.
Since I am suffering from insomnia I figured it would be a great time to come back on what happened:
That's a crappy experience...sounds somewhat misleading to setup a modeling test and then be asked "why did you do any modeling?" but oh well...
For what it's worth, have a background in fundamental credit, and this sounds familiar. Fundamental guys will just smell blood and run with it, picking at every little detail and going further and further down the rabbit hole until they've exposed you for the BS'ER you are - its what they do. Turns into a giant debate and they literally get off on that kind of stuff, so wouldn't take anything personally (not that you are).
Good luck in future.
Set-up wise.. yeah, exactly. Not sure about others who did this, but if anybody had the balls to sit down and do no modeling whatsoever, well, I sure want to shake his/her hand..
Overall experience, not entirely out of blue though, was expecting a few wrinkles on this in some shape or form anyways. So fellas, beware of the neurotic world of fundamental shop interviews...
can u PM me which fund?
Bump. Would also like to know the fund if you don't mind PMing.
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