HEDGE FUND SNAPSHOT: INDUSTRY TRENDS, INTERVIEW GUIDELINES AND ...

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HEDGE FUND SNAPSHOT: INDUSTRY TRENDS, INTERVIEW GUIDELINES AND ...

  1. 1. GLOCAP COLUMBIA SCHOOL OF BUSINESS HEDGE FUND SNAPSHOT: INDUSTRY TRENDS, INTERVIEW GUIDELINES AND COMPENSATION INFORMATION Presented by Glocap Search LLC
  2. 2. GLOCAP GLOCAP SEARCH LLC • Glocap is one of the largest hedge fund, fund of funds and asset management search firms in the country. • Recently completed searches have been with leading alternative and traditional public investment management firms, ranging from $100M to several billion dollars in assets under management. • Hedge Fund client asset classes include equities, debt, commodities, and currencies. • Hedge Fund client strategies include Long/Short Value, Market Neutral, Event Driven, Global Macro, Fixed Income Arbitrage, Quantitative/Statistical Arbitrage, and Convertible Arbitrage, for example. • The majority of Glocap’s Hedge Fund, Fund of Fund, and Asset Management clients are in the United States, concentrated in NY, CT and CA. Glocap’s Hedge Fund and Asset Management practice also has a European presence, particularly in the UK.
  3. 3. GLOCAP DISCUSSION TOPICS • Hedge Fund Market Trends and Recruiting Trends • Preparing for Hedge Fund Interviews • Career Tracks and Compensation at Hedge Funds • Q&A/Resume Collection
  4. 4. GLOCAP MARKET TRENDS AND RECRUITING TRENDS • Market trends: – Hedge fund industry still in growth mode – Continued activity in long/short, event-driven, pairs trading, global macro, some pick-up in merger arbitrage – Continued interest in Spitzer investigations/SEC regulations – Evolution to two tiers of hedge funds: start-up versus established funds • Recruiting trends: – Job market is strong and steady but Company search is for perfect fit – Growth mode for hedge funds not similar to growth mode for investment banks, consulting firms, etc. – No armies of HR/Recruiting Teams – Silver bullet mentality – No formal hiring season
  5. 5. GLOCAP MARKET TRENDS AND RECRUITING TRENDS • Recruiting trends (continued): – Highly fragmented market for job seekers • Personal network • Alumni network • Recruiters • Job posting boards • On-campus recruiting – Analyst • Generalist • Industry specialist – Trader • Execution • Profit & Loss
  6. 6. GLOCAP HOW TO PREPARE FOR HEDGE FUND INTERVIEWS • Educate yourself on Hedge Funds – Read books on Investing, and on different Hedge Fund strategies and managers • Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor by Seth A. Klarman • Market-Neutral Investing : Long/Short Hedge Fund Strategies by Joseph G. Nicholas • Stock Market Wizards : Interviews with America's Top Stock Traders by Jack D. Schwager • The New Market Wizards : Conversations with America's Top Traders by Jack D. Schwager – Follow the markets on a regular basis and develop a clear point of view – Keep up on current events that may be affecting the Hedge Fund industry and think about how this may affect the industry going forward
  7. 7. GLOCAP HOW TO PREPARE FOR HEDGE FUND INTERVIEWS • Try to think about how the skills you’ve learned in other jobs can be transferable to a Hedge Fund position. • Identify which shop would be best for your investment values and skill set, in terms of: – Asset Class • Equity, fixed income, currencies, etc – Company Focus/Organization • Industry specific vs generalist – Investment Strategy/Style/Horizon • Long/short, macro, distressed debt, risk arb, etc • Momentum, event driven, etc • Long term vs short term • Look for a shop whose corporate structure and culture is in line with your values • Size of Fund ($, number of employees) • Inception Date/Track Record • Personality fit
  8. 8. GLOCAP HOW TO PREPARE FOR HEDGE FUND INTERVIEWS • Set expectations for a typical Hedge Fund interviews – Be prepared to talk about long/short stock ideas ON THE SPOT • Personal Account/Mock Portfolios – How do your investment ideas differentiate you » Is there consistency throughout your investment ideas – Be prepared to do more formal case studies on different stocks and to present your ideas to a group of employees • You may have as little as a few hours to prepare this or as long as one week
  9. 9. GLOCAP CAREER TRACKS AND COMPENSATION CAREER TRACKS: • Difference between sell-side and buy-side career tracks – Less structured – Less formal – Fewer tiers/titles • Analyst career track – general rule of thumb – 2-3 years as analyst – 1-3 years as senior analyst – PM • Trader career track – general rule of thumb – 1-3 years as execution trader – 1-3 years as trader/senior trader with P&L responsibilities
  10. 10. GLOCAP CAREER TRACKS AND COMPENSATION COMPENSATION: • Experienced hires (MBA students) with little to no prior hedge fund/asset management experience – Analyst: • BASE: $90k-$120k • BONUS: 1-2 times base • Experienced hires (MBA students) with little to no prior hedge fund/asset management experience – Execution Traders: • BASE: $50k-$80k • BONUS: 1 times base
  11. 11. GLOCAP HEDGE FUND SNAPSHOT: INDUSTRY TRENDS, INTERVIEW GUIDELINES AND COMPENSATION INFORMATION QUESTION & ANSWER To work with Glocap, please register with us at www.glocap.com

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