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

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

You'd be asked mostly resume-based questions about your previous professional experience, your interest in investing, and your understanding of the fund. Time pressure, rather than the difficulty level, is the challenge of this interview round.

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How do you prepare for a hedge fund interview?

“Preparation” for hedge fund interviews means coming up with 2-3 solid investment pitches, working on spinning your pitches into sounding like deals and then taking a strong view of each one, and making sure you can explain your market views coherently.

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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.

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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.

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What questions should I ask a hedge fund?

Here are five questions you need to ask fund managers.
  • What's your experience and how well is that experience documented? ...
  • How would you describe your investment strategy? ...
  • What are some investments you've removed from your portfolio, and why? ...
  • How often do you report to clients? ...
  • When has your process failed?

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Who gets hired at hedge funds?

Investment Professionals

Hedge funds are highly leveraged. This allows money managers, traders, and quants to try a lot of risky trades and strategies. Entry-level investment professionals start as modelers or researchers with a quant role. Such entry-level hires begin by learning existing trading strategies.

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How hard is it to get a job at Citadel?

Is it hard to get hired at Citadel? Glassdoor users rated their interview experience at Citadel as 46.2% positive with a difficulty rating score of 3.30 out of 5 (where 5 is the highest level of difficulty).

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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

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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.

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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.

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Do hedge funds pay a lot?

Those who become successful make a lot of money annually, like the five highest-paid hedge fund managers in 2023. Combined, the top 25 hedge fund managers earned $21.5 billion in 2022. These are the top 5 highest-paid managers as of 2023.

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Do hedge funds pay well?

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.

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

What is the 2 20 rule for hedge funds?

"Two" means 2% of assets under management (AUM), and refers to the annual management fee charged by the hedge fund for managing assets. "Twenty" refers to the standard performance or incentive fee of 20% of profits made by the fund above a certain predefined benchmark.

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.

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

Why would you want to work for a hedge fund and not a mutual fund? This question varies by individual, but think about examples like the following: You have a specific interest in the fund manager's strategy. You were always interested in merger arbitrage, fixed income arbitrage, etc.

How much does a VP of a hedge fund make?

Vice President Of Hedge Funds Salary
Annual SalaryMonthly Pay
Top Earners$244,500$20,375
75th Percentile$190,000$15,833
25th Percentile$115,000$9,583

How do you land a job in a hedge fund?

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 performing hedge fund in 2023?

At the top of the list for 2023 performance was TCI, an activist hedge fund run by the financier Christopher Hohn, which reported $12.9 billion in net gains. Other top performers last year include Citadel, D.E. Shaw, Millennium and Elliot Management.

Does Citadel only hire from Harvard?

Yes, top-tier hedge funds like Citadel, Two Sigma, and D.E. Shaw often recruit top graduates from Ivy League schools and other prestigious universities.

Does Citadel care about GPA?

In addition to completing all specific program requirements, in order to remain in good academic standing, The Citadel Graduate College requires students to maintain a 3.0 GPA. Failure to maintain this GPA results in dismissal from that program.

What do you wear to a Citadel interview?

Suits for men; suits or dresses for women. Go easy on the aftershave or perfume—better yet, don't wear fragrance at all just in case someone you are about to meet has allergies. Go light on the jewelry—earrings, a watch, and nothing else. No T-shirts, tank tops, or flip flops.

Where do hedge funds recruit from?

The top-ranked undergraduate programs for getting an investment-management job at a hedge fund, mutual fund or private equity fund include the usual suspects. Coming in first is the University of Pennsylvania, followed by Harvard University, Stanford University, Cornell University and Princeton University.

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.

How much do quants at hedge funds make?

How much does a Hedge Fund Quant make? As of Jan 18, 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.

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