What do I need to know for a hedge fund interview? (2024)

What do I need to know for a hedge fund interview?

At the very least, you should have an idea of the hedge fund's assets under management, sector focus and strategy. It will help if you also know the names of its top trader(s) and the nature of its investor base. Try talking to some other employees (or past employees) before the interview.

Why do you want to work for a hedge fund answer?

Why Work at a Hedge Fund? Hedge funds are good if you're extremely passionate about the public markets, and you want to follow companies and other securities rather than work on deals. “Extremely passionate” means: You're constantly reading about the financial markets in books and other media.

What is the first round of hedge fund interview?

You will get the standard investment banking behavioral questions: Tell me about yourself, talk about your deal experience, why do you want to work at a hedge fund, why do you want to work at this fund, etc. You will also need to be prepared to answer accounting, modeling, and stock market questions.

Is it hard to get hired by a hedge fund?

Hedge funds employ some of the best-paid business professionals anywhere, but landing your first job in the industry is no cakewalk. Building a hedge fund career takes determination, networking stamina, and a fierce competitive streak. Here are some steps to help get you to that interview and then land that job.

What is the minimum salary for a hedge fund?

Hedge Fund Jobs, Salaries & Compensation
Position TitleTypical Age RangeBase Salary + Bonus (USD)
Junior Analyst or Research Associate22-25$100K - $150K
Analyst24-30$200K - $600K
Senior Analyst or Sector Head28-33$500K - $1 million
Portfolio Manager32+$500K - $3 million

What kind of people do hedge funds hire?

Hedge funds employ analysts, researchers, traders, portfolio managers and other financial professionals. These people work together to choose stocks to invest in and short. Short, or short selling, refers to when a hedge fund purchases shares under the assumption that the price for each share may drop.

How stressful is it to work at a hedge fund?

Long and stressful days

The day for hedge fund managers is very long and full of stressful hours. The end of the market day doesn't necessarily mean that they are done for the day. Many hedge fund managers run positions in overnight markets so they will need to monitor those trades, often late into the night.

What are the cons of working at a hedge fund?

On the negative side, the hours are still long and stressful (though better than investment banking hours), job security can be low, and your exit opportunities will be limited.

What do hedge funds look for in candidates?

Current Book Size: Hedge Funds typically look for PM candidates that have been running at least $200m-$500m+ in another Hedge Fund (or similar) setting, ideally with at least 2-3+ years with full ownership of the track.

How should I dress for a hedge fund interview?

“If they are in jeans, dress business casual,” he said. “If they are business casual, wear something like a jacket with no tie.” He said that none of his current hedge fund clients have a suit-only dress code. While jeans may be a bit over-the-top at some firms, so is overly formal dress.

What is the pass rate for first round interviews?

Consulting firms typically have two different rounds of interviews before extending consulting job offers to candidates. Roughly 10% to 30% of applicants pass consulting first round interviews and move onto final round interviews.

Do you talk about money on first interview?

You need timing and tact

Don't bring it up during your first interview, either. Use these opportunities instead to show your suitability for the role and let the employer get to know you. By the second interview, it's usually acceptable to ask about compensation, but tact is key.

Do hedge funds hire straight out of college?

It's hard to say. Hedge funds hire overwhelmingly from banks sales and trading schemes, and few run their own graduate training schemes for people just leaving university. However, hedge fund graduate jobs and internships do exist (you're about to get a list of them), but expect them to be ferociously competitive.

What majors do hedge funds look for?

Hedge fund managers may have a degree in accounting, finance, economics or business administration. Students use their education to develop important analytical skills and to learn more about finances, hedge funds and stock investments. Many students also complete an internship with a financial firm.

What is the highest paying job in a hedge fund?

Best paying Hedge Fund research & development salaries
RankPositionAverage Hedge Fund Salary
1Process Development Director$149,780
2Research Analyst$116,749
3Research Assistant$54,893

Is hedge fund as a career worth it?

Hedge funds are widely regarded as offering significant earning potential. Junior level employees are able to achieve salaries upwards of $500k in some places, and the best fund managers can see their net worth ultimately reach nine or even ten figures.

How much do quants at hedge funds make?

How much does a Hedge Fund Quant make? As of Jan 31, 2024, the average annual pay for the Hedge Fund Quant jobs category in the United States is $169,729 a year. Just in case you need a simple salary calculator, that works out to be approximately $81.60 an hour. This is the equivalent of $3,264/week or $14,144/month.

How much do Citadel PM make?

The estimated total pay for a Portfolio Manager at Citadel is $248,733 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. The estimated base pay is $159,103 per year.

What personality type is a hedge fund?

Hedge fund portfolio managers and analysts

“I'm right and I'm all over the details”… D & C personalities dominate hedge funds. Is are wonderful idea generators, but often get shaken out over the life of an investment as the market moves. S types tend to get runover in the hedge fund world.

What personality type are hedge fund managers?

Investment fund managers score highly on extraversion, meaning that they rely on external stimuli to be happy, such as people or exciting surroundings. They also tend to be high on the measure of conscientiousness, which means that they are methodical, reliable, and generally plan out things in advance.

How to get a job at a hedge fund with no experience?

The easiest path to landing a job at any type of hedge fund is to work in banking for the first two years out of undergrad. During those years, make sure you develop a good reputation and try to be a top bucket analyst. You need to be very good at excel and have a strong grasp on valuation / modeling.

What is the best degree to work in a hedge fund?

A B.S. in finance can prepare you for a range of hedge fund positions: asset manager, portfolio or equity analyst, and equity trader. A finance-oriented bachelor's degree can also be a great primer for a Master of Business Administration (MBA).

Why are hedge fund managers so rich?

Hedge fund managers typically earn above-average compensation, often from a two-and-twenty fee structure. Hedge fund managers typically specialize in a particular investment strategy that they then use to power their fund portfolio's mandate for profits.

Where do hedge funds recruit from?

There is no single college or university that is preferred by hedge funds when recruiting from. They typically recruit from a variety of different places, with Cornell, UC Berkeley, NYU, and other Ivy League schools often being in the mix.

Can you make millions working at a hedge fund?

Yes, you can no doubt make a lot of money in this industry. There have been years when my friends and I have made $1MM+ bonuses but also years when we have made nothing. Working at a hedge fund is one of the careers paths to get a top 1% net worth, but certainly not an easy one.

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