General Questions

1. Tell me about yourself and why you’re interested in working for our hedge fund.
2. What do you think sets our hedge fund apart from others?
3. Describe your investment philosophy in three sentences.
4. How do you stay informed about market trends and news?
5. Explain a complex financial concept in simple terms.

 

Behavioral Questions

1. Describe a time when you had to make a quick decision without all the information you needed.
2. Tell us about a challenge you faced while working on a team and how you overcame it.
3. Can you provide an example of a significant risk you took and its outcome?
4. How do you handle stress and pressure, especially during volatile market conditions?
5. Describe a failure you experienced in a professional setting and what you learned from it.

 

Technical Skills and Knowledge

1. Walk me through a DCF model.
2. How do you value a company with no revenue?
3. Explain the CAPM model and its limitations.
4. Describe the difference between IRR and NPV.
5. How would you hedge a portfolio against a market downturn?

 

Financial Markets and Instruments

1. What’s your outlook on the current state of the global economy?
2. Explain the impact of interest rate changes on the bond market.
3. Discuss the implications of a steepening yield curve.
4. How does quantitative easing affect equity and bond markets?
5. What are the risks and benefits of investing in emerging markets?

 

Investment Strategies

1. Explain the long/short equity strategy.
2. What is event-driven investing and can you provide an example?
3. How would you construct a diversified portfolio?
4. Describe a time when you had to pivot your investment strategy quickly.
5. What criteria do you use to evaluate a potential investment?

 

Stock Pitch

1. Pitch me a stock that you believe is undervalued. Why?
2. Discuss a stock you would short and the reasoning behind it.
3. What sectors do you think are poised for growth in the next year and why?
4. How do you assess the risk of a stock investment?
5. Explain a past investment you made that didn’t go as planned.

 

Uncommon & Creative Questions

1. If you could only choose one financial metric to evaluate a company, which would it be and why?
2. How would you invest $1 million right now?
3. What’s an under-the-radar financial trend you’re monitoring?
4. If the stock market were closed tomorrow, how would you invest?
5. How would you explain the concept of a hedge fund to an 8-year-old?

 

Scenario-Based Questions

1. How would you respond if a significant investment suddenly dropped 20% in a day?
2. A company you’ve heavily invested in is facing a public scandal. What do you do?
3. Imagine we’re entering a recession. How do you adjust your investment strategy?
4. You have information that a sector is going to experience rapid growth. How do you capitalize on this?
5. How do you assess the impact of geopolitical events on your investment portfolio?

 

Risk Management

1. Describe a strategy to mitigate systematic risk in a portfolio.
2. How do you evaluate the risk/reward ratio of an investment?
3. Explain the difference between systematic and unsystematic risk.
4. How would you manage a highly volatile investment within a conservative portfolio?
5. What’s your process for setting stop-loss orders?

 

Industry-Specific

1. What hedge fund manager do you admire most and why?
2. How do you think technology is changing the hedge fund industry?
3. What is your take on the use of artificial intelligence in investment strategies?
4. How do you think environmental, social, and governance (ESG) factors will affect future investment decisions?
5. Discuss a recent major event in the financial markets and its implications for hedge funds.