Hedge Funds

66 questions across 24 core, 37 common, 5 occasional

Core

Common

Occasional

Total

Core Questions

Essential fundamentals every candidate should know

CoreHARDStock Pitch FrameworkTECHNICAL

Pitch me a stock.

CoreMEDIUMPortfolio Risk ManagementTECHNICAL

How do you think about risk management in a portfolio?

CoreHARDMarket Analysis FrameworkTECHNICAL

What is your current view on the market? Is the S&P 500 overvalued?

CoreMEDIUMAlpha vs BetaTECHNICAL

Explain the concept of alpha and beta in portfolio management.

CoreMEDIUMCompetitive Moat AnalysisTECHNICAL

Walk me through how you would analyze a company's competitive moat.

CoreMEDIUMCentral Bank Policy and MarketsTECHNICAL

How does the Federal Reserve influence financial markets?

CoreMEDIUMYield Curve AnalysisTECHNICAL

What is the yield curve and what does its shape tell us?

CoreMEDIUMMacro Monitoring FrameworkTECHNICAL

What macroeconomic indicators do you monitor and why?

CoreHARDShort Thesis FrameworkTECHNICAL

Pitch me a short idea.

CoreMEDIUMLong/Short Equity MechanicsTECHNICAL

Walk me through the mechanics of a long/short equity strategy.

CoreHARDSector Analysis FrameworkTECHNICAL

What is your view on a specific sector and why?

CoreEASYPresent-Past-Future + HF MotivationBEHAVIORAL

Tell me about yourself and why you want to work at a hedge fund.

CoreMEDIUMFinancial Statement AnalysisTECHNICAL

Walk me through how you would analyze a company's financial statements.

CoreMEDIUMSTAR Method - Investment HumilityBEHAVIORAL

Tell me about a time you had strong conviction but were wrong.

CoreMEDIUMInvestment Philosophy StatementBEHAVIORAL

Describe your investment philosophy.

CoreMEDIUMIdea Generation ProcessBEHAVIORAL

How do you generate new investment ideas?

CoreEASYInvestment Style ComparisonTECHNICAL

What is the difference between value and growth investing?

CoreMEDIUMPosition Sizing FrameworkTECHNICAL

How do you think about position sizing in your portfolio?

CoreEASYValue Investing PrinciplesTECHNICAL

Explain the concept of a margin of safety in investing.

CoreMEDIUMEarnings Analysis FrameworkTECHNICAL

Walk me through how you would analyze an earnings release.

CoreMEDIUMFundamental AnalysisTECHNICAL

Walk me through how you would analyze a company's free cash flow.

CoreMEDIUMMarket Efficiency DebateTECHNICAL

What is the efficient market hypothesis and do you agree with it?

CoreEASYInvestment PhilosophyTECHNICAL

How do you think about the difference between price and value?

CoreEASYValuation BasicsTECHNICAL

What is the difference between enterprise value and equity value, and when do you use each?

Common Questions

Frequently asked in interviews

CommonEASYSTAR Method - Speed of Decision MakingBEHAVIORAL

Describe a time you had to make a quick decision with incomplete information.

CommonMEDIUMShort Selling MechanicsTECHNICAL

What is a short squeeze and give a recent example.

CommonHARDOptions Strategy SelectionTECHNICAL

What is an options strategy you would use in the current market environment?

CommonMEDIUMOptions Theory - Put-Call ParityTECHNICAL

Explain put-call parity.

CommonMEDIUMManagement Assessment FrameworkTECHNICAL

How do you evaluate management quality when analyzing a company?

CommonHARDCyclical Company ValuationTECHNICAL

How do you think about valuing a company in a cyclical industry?

CommonHARDMarket-Neutral Portfolio ConstructionTECHNICAL

How would you construct a market-neutral portfolio?

CommonMEDIUMInvestment Approach ComparisonTECHNICAL

What is the difference between fundamental and quantitative investing?

CommonMEDIUMPair Trading StrategyTECHNICAL

Explain the concept of a pair trade and when you would use one.

CommonMEDIUMEvent-Driven StrategiesTECHNICAL

What is event-driven investing? Give examples of event-driven strategies.

CommonHARDOptions GreeksTECHNICAL

What is the Greeks in options and how do they help manage risk?

CommonHARDGrowth Company ValuationTECHNICAL

How do you determine fair value for a growth company trading at a high multiple?

CommonMEDIUMRisk-Adjusted Return MetricsTECHNICAL

What is the Sharpe ratio and what are its limitations?

CommonHARDRecession Portfolio Stress TestTECHNICAL

How would you analyze the impact of a potential recession on your portfolio?

CommonHARDSOTP Valuation for InvestingTECHNICAL

How would you value a company using a sum-of-the-parts approach?

CommonMEDIUMCross-Sector Impact AnalysisTECHNICAL

How would you analyze the impact of rising oil prices on different sectors?

CommonMEDIUMCredit Analysis FundamentalsTECHNICAL

What is a credit spread and what does it indicate?

CommonMEDIUMCapital Allocation AssessmentTECHNICAL

How do you evaluate a company's capital allocation track record?

CommonMEDIUMVIX and Volatility TradingTECHNICAL

What is the VIX and how would you use it in your investment process?

CommonMEDIUMFX and Fixed Income StrategyTECHNICAL

What is a carry trade and what are the risks?

CommonHARDVolatility AnalysisTECHNICAL

Explain the concept of implied volatility and how it differs from realized volatility.

CommonMEDIUMCapital AllocationTECHNICAL

How would you analyze the impact of share buybacks on a company's valuation?

CommonMEDIUMCatalyst-Driven InvestingTECHNICAL

What is a catalyst-driven investment and can you give an example?

CommonEASYInvestment Intellectual CuriosityCULTURE FIT

What book on investing has most influenced your thinking and why?

CommonMEDIUMBalance Sheet Analysis for InvestorsTECHNICAL

How do you analyze a company's balance sheet for investment purposes?

CommonHARDEvent-Driven AnalysisTECHNICAL

How would you analyze a company that just issued a profit warning?

CommonHARDFactor Investing FrameworkTECHNICAL

What is a factor model and how is it used in portfolio management?

CommonHARDDCF for Investment AnalysisTECHNICAL

How would you build a discounted cash flow model for a company you are analyzing?

CommonMEDIUMValuationTECHNICAL

What is a reverse DCF and when would you use it?

CommonMEDIUMIntellectual HonestyBEHAVIORAL

Tell me about a time you changed your mind on an investment and what prompted the change.

CommonMEDIUMInvestment ApproachesTECHNICAL

Explain the difference between systematic and discretionary investing.

CommonMEDIUMMacro AnalysisTECHNICAL

How do you think about the impact of inflation on equity markets?

CommonMEDIUMValuationTECHNICAL

What is a sum-of-the-parts analysis and when is it most useful?

CommonMEDIUMSpecial Situations InvestingTECHNICAL

What is a special situation investment? Give examples of different types.

CommonHARDRisk ManagementTECHNICAL

How would you analyze the impact of a major geopolitical event on your portfolio?

CommonEASYCompetitive AnalysisTECHNICAL

Walk me through how you would analyze a company's competitive position using Porter's Five Forces.

CommonHARDFinancial ModelingTECHNICAL

Describe your process for building an investment model from scratch.

Occasional Questions

Asked for specific roles or levels

OccasionalHARDConvertible ArbitrageTECHNICAL

Walk me through how you would evaluate a convertible arbitrage strategy.

OccasionalMEDIUMTariff Impact AnalysisTECHNICAL

How would you analyze the impact of tariffs on a company you own?

OccasionalHARDConcentration Risk HedgingTECHNICAL

How would you hedge a concentrated equity position?

OccasionalHARDShort SellingTECHNICAL

What is a short seller report and how would you analyze one?

OccasionalMEDIUMThematic InvestingTECHNICAL

Hedge Funds

Core Questions

Pitch me a stock.

How do you think about risk management in a portfolio?

What is your current view on the market? Is the S&P 500 overvalued?

Explain the concept of alpha and beta in portfolio management.

Walk me through how you would analyze a company's competitive moat.

How does the Federal Reserve influence financial markets?

What is the yield curve and what does its shape tell us?

What macroeconomic indicators do you monitor and why?

Pitch me a short idea.

Walk me through the mechanics of a long/short equity strategy.

What is your view on a specific sector and why?

Tell me about yourself and why you want to work at a hedge fund.

Walk me through how you would analyze a company's financial statements.

Tell me about a time you had strong conviction but were wrong.

Describe your investment philosophy.

How do you generate new investment ideas?

What is the difference between value and growth investing?

How do you think about position sizing in your portfolio?

Explain the concept of a margin of safety in investing.

Walk me through how you would analyze an earnings release.

Walk me through how you would analyze a company's free cash flow.

What is the efficient market hypothesis and do you agree with it?

How do you think about the difference between price and value?

What is the difference between enterprise value and equity value, and when do you use each?

Common Questions

Describe a time you had to make a quick decision with incomplete information.

What is a short squeeze and give a recent example.

What is an options strategy you would use in the current market environment?

Explain put-call parity.

How do you evaluate management quality when analyzing a company?

How do you think about valuing a company in a cyclical industry?

How would you construct a market-neutral portfolio?

What is the difference between fundamental and quantitative investing?

Explain the concept of a pair trade and when you would use one.

What is event-driven investing? Give examples of event-driven strategies.

What is the Greeks in options and how do they help manage risk?

How do you determine fair value for a growth company trading at a high multiple?

What is the Sharpe ratio and what are its limitations?

How would you analyze the impact of a potential recession on your portfolio?

How would you value a company using a sum-of-the-parts approach?

How would you analyze the impact of rising oil prices on different sectors?

What is a credit spread and what does it indicate?

How do you evaluate a company's capital allocation track record?

What is the VIX and how would you use it in your investment process?

What is a carry trade and what are the risks?

Explain the concept of implied volatility and how it differs from realized volatility.

How would you analyze the impact of share buybacks on a company's valuation?

What is a catalyst-driven investment and can you give an example?

What book on investing has most influenced your thinking and why?

How do you analyze a company's balance sheet for investment purposes?

How would you analyze a company that just issued a profit warning?

What is a factor model and how is it used in portfolio management?

How would you build a discounted cash flow model for a company you are analyzing?

What is a reverse DCF and when would you use it?

Tell me about a time you changed your mind on an investment and what prompted the change.

Explain the difference between systematic and discretionary investing.

How do you think about the impact of inflation on equity markets?

What is a sum-of-the-parts analysis and when is it most useful?

What is a special situation investment? Give examples of different types.

How would you analyze the impact of a major geopolitical event on your portfolio?

Walk me through how you would analyze a company's competitive position using Porter's Five Forces.

Describe your process for building an investment model from scratch.

Occasional Questions

Walk me through how you would evaluate a convertible arbitrage strategy.

How would you analyze the impact of tariffs on a company you own?

How would you hedge a concentrated equity position?

What is a short seller report and how would you analyze one?

What are the key risks and opportunities in the current energy transition?

Hedge Funds

Core Questions

Pitch me a stock.

How do you think about risk management in a portfolio?

What is your current view on the market? Is the S&P 500 overvalued?

Explain the concept of alpha and beta in portfolio management.

Walk me through how you would analyze a company's competitive moat.

How does the Federal Reserve influence financial markets?

What is the yield curve and what does its shape tell us?

What macroeconomic indicators do you monitor and why?