Training · HF-1 · Lesson 05 of 06
The hedge fund interview
The rule
The pitch is the interview. Everything else — markets today, a name you shorted, your reaction to a drawdown — tests whether you hold views with evidence.
The pitch round
Expect to pitch one long and possibly one short, and to have them stress-tested. The interviewer may know the stock better than you. They are testing your process and how you respond to challenge, not only whether the idea is right.
- ·Have numbers ready: revenue, margins, multiples, consensus.
- ·Know the bear case better than the bears.
- ·Be ready to say what would make you change your mind.
Market questions
'What's interesting in the market?', 'What would you short today?', 'Where are rates going?'. Answer with a clear view, the evidence and the trade that expresses it. Vague answers suggest you do not follow markets day to day.
Case studies and modelling
Many funds give a take-home case: a company to analyse in a few days, with a model and written recommendation. Others test an on-site modelling exercise or a review of a 10-K under time pressure. The output must be a decision, not a summary.
- Time allowed
- 2–5 days
- Model
- 3-statement + scenarios
- Memo
- 2–4 pages
- Required
- Recommendation, target, risks, size
Behavioural and temperament
Funds ask about your worst investment, how you handle losses and how you deal with disagreement with a PM. Honesty and specific lessons matter. Describing a loss without defensiveness signals you can survive the job.
Preparation
Maintain a personal portfolio or watchlist with written theses and track results. Read daily. Practise pitching aloud to friends who will push back. Interviews reward people who already think like investors.
Hold onto this
- ·Bring two pitches: one long, one short, both under ten minutes.
- ·Expect the pitch to be attacked, and be ready to change size rather than the story.
- ·Have a view on where the market is wrong right now, in one sentence.
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Education, not financial advice. Figures may be simplified for illustration.