Guide to Getting a Hedge Fund Job

Presents:

Guide to Getting a Hedge Fund Job How to Outthink the Competition and Avoid

Pitfalls Most Applicants Make

Copyright 2009

www.HedgeFundJobList.com

GUIDE TO GETTING A HEDGE FUND JOB © 2009 Page 1

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Contents INTRODUCTION......................................................................................................................... 3

7 KEYS TO GETTING A HEDGE FUND JOB ........................................................................ 4

CREATE AN EFFECTIVELY TARGETED RESUME .......................................................... 6

COVER LETTERS THAT GET INTERVIEWS ...................................................................... 9

PREPARE FOR INTERVIEW QUESTIONS ......................................................................... 13

KEY HEDGE FUND RESOURCES ......................................................................................... 18

HEDGE FUND PROFILES ....................................................................................................... 19

JP MORGAN ASSET MANAGEMENT ............................................................................................ 20 BRIDGEWATER ASSOCIATES ....................................................................................................... 21 FARALLON CAPITAL MANAGEMENT .......................................................................................... 23 RENAISSANCE TECHNOLOGIES ................................................................................................... 25 OCH-ZIFF CAPITAL MANAGEMENT ............................................................................................ 27 DE SHAW GROUP ....................................................................................................................... 29 GOLDMAN SACHS ASSET MANAGEMENT ................................................................................... 31 PAULSON & CO. ......................................................................................................................... 33 BARCLAYS GLOBAL INVESTORS ................................................................................................. 35 MAN INVESTMENT GROUP ......................................................................................................... 37

ABOUT HEDGEFUNDJOBLIST.COM .................................................................................. 39


Introduction

HedgeFundJobList.com’s, Guide to Getting a Hedge Fund Job, provides a number of valuable resources to help you differentiate yourself and get the most out of our hedge fund / private equity contact lists. Even if you choose not to utilize our lists, you will find our guide to be useful in your job search.

This guide, like our lists, is primarily intended for entry and mid-level prospects. These roles are the most competitive because of the sheer number of applicants. Intelligence and qualifications are only part of the picture. You must be able to communicate your competencies clearly and effectively and do so in a manner that differentiates you from the rest of the field. This guide will not detail every step of the process, nor guarantee your success. It will, however, provide you a powerful overview of the most important steps you should take, and help you to avoid the mistakes commonly made by other applicants.

The guide begins by outlining seven key steps to getting a hedge fund job.

The hedge fund resume and cover letter sections illustrate the most important aspects of successful hedge fund / private equity specific resumes and cover letters. These sections illuminate the rational for creating at least two resumes and describe how to target them effectively.

All jobs are not alike. A great resume sent to a boutique hedge fund should look very different from one sent to a large mutual fund manager like T. Rowe Price. Not only is the role different, but the person reviewing your application has very different priorities. At T. Rowe Price, your resume and cover letter will be read by a human resource manager. With the exception of the 20 or 30 largest funds, your hedge fund or private equity resume will be read by a highly compensated partner or director with a short attention span.

Interview questions are explored and samples provided in the interview questions section.

Find other hedge fund and private equity job resources in our key resources section.

Finally, our guide provides profiles of key firms. Though funds with over $10 billion in AUM make up less than 1% of hedge fund and private equity firms, they account for maybe 10 - 20% of the open positions. Our fund profiles provide basic information on these firms and can serve as the basis for the research you will do before applying for a job.



7 Keys to Getting a Hedge Fund Job

1. Determine Your Passion and Pick a Specialty Don’t be afraid to specialize. Just make sure you specialize in a field that funds are interested in. Being a generalist is fine for many jobs, but in the hedge fund industry you will be pushed into one of a handful of roles – research, trading, programming, sales etc. Make it easy for the hiring manager to determine which role you fit into by building your resume around a distinct skill set.

2. Research the Firms You Intend to Work For You have spent decades obtaining your education, work experience, and credentials. Don’t squander your years of hard work by writing generic cover letters or showing up for interviews without a solid understanding of the firm’s business. For some firms you can find 13F filings that detail some of their largest holdings. Search Bloomberg and other financial sites for relevant articles, holdings, and recent regulatory issues. At HedgeFundJobList.com we provide website URLs and other contact info thousands of US hedge funds and private equity firms. The addition of hiring manager e-mails for the majority of firms provides a solid starting point for your career search.

3. Gain Credibility and Understanding with a Certification If you have only a bachelor’s degree, you may want to consider getting additional certifications and licenses. The Series 7 may be necessary for certain sales roles that deal with non-qualified investors. However, the Chartered Financial Analyst (CFA) is by far the most respected credential. It is also the most difficult to get, requiring several hundred hours and three years to obtain. You might also consider the Chartered Hedge Fund Analyst (CHA) Chartered Alternative Investment Analyst (CAIA)

4. Network Surely you have heard people say that the best jobs go to personal connections. This may be true, but your lack of direct contacts shouldn’t stop you from expanding your rolodex. Join networking sites like LinkedIn and financial job sites such as Vault.

5. Perfect Your Resume / Cover Letter No matter what you have done or achieved in your life, your resume and cover letter will be your primary means of conveying these achievements to your prospective employer. Don’t expect to crank out your resume and a bunch of cover letters in a few hours. You may be competing with prospects that have better qualifications than you. A little extra attention to your cover letter and resume will help you stand out.

6. Work on Your Interview Skills

http://www.sec.gov/answers/form13f.htm


http://www.cfainstitute.org/

http://chadesignation.org/CHA-Designation-Program-Benefits.html

http://www.caia.org/


http://www.linkedin.com/

http://www.vault.com/


Perfecting your interview skills is a holistic process. First, spend a few hours, or days if necessary, reviewing intermediate math and accounting. At some point in the interview process you will be asked questions that require these skills. You should also have someone quiz you for practice. Another option: get real-life interview practice by applying to jobs you are over-qualified for (bank teller, personal banker, insurance sales). Treat the interview just as you would a hedge fund or private equity interview. You won’t get the same caliber of intellectual questions, but it will make you more comfortable when you interview for a more prestigious position.

7. Be Proactive! Don’t sit around waiting for funds to post jobs on the internet. Even in better economic times, most funds bypass generic sites like CareerBuilder and Craigslist. A handful use Vault and other financial specific sites. Even when jobs are posted, the flood of applicants quickly overwhelms the manager, and your resume is unlikely to be given the attention it deserves. Direct contact involves writing unsolicited letters to hiring managers and is a terrific option in the current environment because there will be far fewer applicants than for published job openings. You should also explore using recruiters like GloCap and Robert Half, though entry-level candidates can sometimes feel undervalued.

https://www.glocap.com/

http://www.rhi.com/


Create an Effectively Targeted Resume

It is important to note that you should have at least two (maybe more) distinct resumes. One to post on internet job boards, and another that you send directly to potential employers. This resume guide is intended for hedge fund and private equity job-seekers using the latter method, who intend to contact the firms they are interested in directly.

If you are posting your resume on job boards like Vault, CareerBuilder, etc. you will want a resume that is full of the keywords that recruiters look for. You can find plenty of sites that will help you “stuff” your resume with the type of keywords financial employers (and their search software) are looking for. However, when sending a resume to funds directly (whether using one of our lists or replying to a specific job post) these overused keywords will only serve to distract or annoy the sometimes intelligent, mostly impatient, and often highly paid person reviewing your resume.

Hedge funds and private equity firms do not hire like other businesses. In fact they don’t even hire like other financial firms. More than 90% of hedge funds and private equity firms do not have a single dedicated human resource officer. Your communications will likely go to the managing director or CEO of the firm directly (our lists provide four methods of contacting them). The person making the initial decision on whether your resume deserves further review, or a quick trip to the recycle bin, is a highly compensated entrepreneur who considers his/her time very valuable. Do not waste their time with financial mumbo-jumbo, vaguely worded accomplishments, or other unnecessary hyperbole. Each position/experience that makes it on to your resume should be directly applicable to the position you are applying for.

Your hedge fund or private equity resume should:

Be Concise:

Your hedge fund resume and cover letter must be concise. As stated above, your resume will most likely be reviewed by a partner or director who considers their time very valuable. Waste their time and your resume will end up in the waste basket, regardless of your qualifications.

If you are relatively entry-level (less than 4 or 5 years of financial experience) there is absolutely no reason your resume should be more than one page. Some managers throw out any and all multiple page resumes. They don’t have time to read them, and they believe if you have accomplished enough to justify multiple pages, they would surely have heard of you from your interviews on Bloomberg or your Nobel Prize in Economics. Remember, it is not the quantity of your accomplishments, but rather their unique qualities. It is best to share two or three really powerful and distinguishing accomplishments accompanied by just enough detail to justify them.


A concise resume is easy to read. Don’t use color, don’t use graphics, don’t play around with fancy templates. Few hedge fund managers will be impressed by your Microsoft Office skills, but many will be turned off by your distracting extravagance. Keep it simple. Hedge funds and private equity firms expect all members of their organization to help in the acquisition and retention of client assets. If you cannot communicate your ideas effectively in your resume and cover letter, should they expect you to be able to do so with clients?

Be Specific:

You resume must be specific in two senses: specific information on your achievements and specific information on how you can help the firm.

Remember that your resume should be no longer than one page and note only your most relevant and important accomplishments. Highlight a couple of these and describe what exactly you did, how you were able to succeed, and the implications of your work. These accomplishments should emphasize skills that are relevant to the prospective employer.

For example, let’s say you worked on a team at Alliance Bernstein that helped develop sell-side research on the tech industry. You could phrase this in a couple of ways:

1. Conducted analysis and background to help the Technology Research Team with its monthly research reports.

2. Used (my) statistical background to develop a new quantitative cash flow valuation model that propelled the Technology Research Team to its status as Top Research Sector at Alliance Bernstein for 2007-2008.

The first response relies entirely on generalities. In fact, it would be true even if all you did was photocopy charts. Analysis, background, and research are all vague terms that say little about the quality or implications of your work. Truthfully, the second example could use a bit more detail as well, but is far more specific than the first example. It also provides a direct connection between your work and the success of the firm.

Determine Your Role:

This guide is intended for constructing hedge fund and private equity resumes that will be sent directly to employers without the use of a recruiter or headhunter. When posting your resume on the internet, or using a recruiter, it is often acceptable to display a broader set of skills because your resume may be seen by dozens of employers with different needs. However, when applying to firms directly, particularly for positions that may or may not actually exist, it is critical that you define yourself and the role you would like to play within the firm.


As noted earlier, the person reviewing your resume may be a very highly compensated partner, MD, or even the CEO of a small asset management or private equity firm. Do not expect them to be so impressed with your qualifications that they spend the time to figure out what role you would be best in. Tell them directly. If you have less than five years of financial experience, you are most likely to get a job as a junior analyst or associate. Research what these roles entail and emphasize your most relevant skills. Analytical and strategic thinking skills are a requirement for these positions, not a bonus. Don’t mention the overused terms, “strategic” and “analytic” unless you can back them up with specific evidence of these attributes.

Candidates for entry-level positions will be expected to do everything from coffee runs to acting as a research “gopher”. Your resume should therefore note your ability to work in a team environment (and don’t just say it, prove it).

Entry-level finance jobs are seldom as glamorous as one might hope. Accept this and use your past experience to indicate your willingness to proactively help the firm succeed in whatever manner is necessary. Most managers would prefer this type of dedication to a very intelligent person who finds such work beneath them. Intelligence and market savvy are keys to running a successful fund. Hard work, dedication, and cooperation are the keys to being successful in a junior role (a certain degree of intelligence and experience are prerequisites as well). They will not be hiring you because they think you will be successful at managing large sums of money. They will be hiring you because they think you can help them be more successful by providing them relevant research, handling routine administrative tasks, and working well with your teammates. Your accomplishments should illustrate your ability to be proactive and accomplish more than was asked of you.

Don’t Rely on Your Cover Letter to Communicate the Role you Want:

Most people fall into the trap of writing a general resume, and rely on their cover letter to describe why they would be a good fit in a given role. What if the manager never even reads the cover letter? Don’t expect that both your cover letter and resume will be read thoroughly, or at all. It is essential that your resume convey your skill-set in such a manner that the reader immediately knows what role you are applying for, without having read your cover letter. You can also use the “objective statement” to convey the position you see yourself in, but it is best to avoid redundancy with your cover letter. In fact, if the achievement/accomplishment portion of your resume is written well enough, you may not even need an “objective statement”.

Remember, this is not a complete guide to resume writing. We didn’t discuss the resume layout or format, the inclusion of an educational background, or many other features common to good resumes. You should have no trouble finding resources to help with these general subjects. All good resumes, are clear, concise, and specific, but this guide emphasizes how critical these attributes are when applying for a hedge fund or private equity job.


Cover Letters that Get Interviews

Your cover letter is as important as your resume in many respects and it deserves equal consideration. The cover letter is the first item seen by the manager or partner reviewing your application. A poorly written or overly verbose letter will not be considered, and your resume will not be reviewed either. Therefore, it is essential that your first paragraph (you may only need one) appeal to the reader.

Before you begin writing, it is critical that you consider who will be reading your letter, what they are used to seeing, and what they expect to see.

Who is reading your letter?

Small firms (< $250M in AUM) are unlikely to have a dedicated human resources professional. Initial correspondence should be directed to the CEO, a partner, or managing director. Large firms (> $1B) will likely have an HR department that handles initial inquiries, though hiring decisions will be made by a team of senior partners. If you are addressing your letter to the CEO, it is well worth your time to do a little research. Maybe you are alumni of the same school? Maybe you had an internship with a firm he worked with for 10 years or you volunteer for an organization for which the CEO is on the board. If you can find some common perspective it will help your letter stand out. Just make sure not to address anything too personal (kids, spouses, politics etc).

What are hiring managers used to seeing in cover letters?

The letters hiring managers see all too often have a few distinguishing characteristics: they are lengthy, lack a call to action, are impersonal, and resemble a form letter. Avoid these mistakes at all costs.

Remember that the goal is to get your resume reviewed. If they aren’t interested enough to finish reading your letter, do you think they will have any interest in your background and qualifications? Brevity is your friend. Avoid any temptation to embellish your letter with large words or complex literary contraptions.

It is also very important to try to address the specific person in charge of hiring. For some firms you will be able to do your own research and find bios of the key people on the internet or from a business library. Our frequently updated hedge fund lists also supply an easy way to contact 3500+ hedge fund and private equity firms and provide specific contact info for key hiring managers. Whatever your method, there is no surer way of getting your cover letter and resume tossed in the trash than to address it “Dear Sir” or “To Whom it May Concern”.



Have a call to action or take responsibility for that action yourself. Your cover letter should conclude by thanking the reader for reviewing your qualifications and ask for an interview. Many people, not wanting to be seen as pushy, don’t take the critical step of asking for the initial interview. The entire purpose of your letter and resume are to obtain an interview. You must ask for it. You might say something like this:

“Thank you for reviewing my qualifications. I will call you next week to discuss setting up a time to meet personally.”

Of course, if you take responsibility for initiating the conversation you must follow up as indicated.

What do hiring managers expect to see?

Hedge fund managers and private equity managers are looking for different qualifications. Hedge funds typically appreciate trading and research backgrounds, while private equity firms favor banking experience. Qualifications aside, both types of firms look for the same type of personal traits. They expect academic achievement, a very strong work ethic, and some sort of professional achievement. If you can address all three in a concise manner, you will be a step ahead of your competition. Your letter should also mention the firm by name and in a manner that makes it obvious that you are not writing a form letter:

“I would be excited to work for a great firm like ABC Capital”- Likely form letter.

“I believe my experience as a Research Analyst with Merrill Lynch’s Global Equity Team would be a valuable asset to ABC Capital Management’s top-ranked international research department.”- Clearly not a form letter.

Most importantly, you must tell the reader what position you are applying for. Even if you are unsure if they are hiring at all, determine the position you would most likely be offered and seek it out. For example, let’s take AEA Investors (www.aeainvestors.com), a large private equity firm in Connecticut. If you are using this guide in conjunction with one of our hedge fund lists, simply click on the website URL. On AEA’s website you will find the link, “Our People”. By investigating some of the names you will find the staff is divided into Managing Directors, Principals, Vice Presidents, and Associates. This is a common hierarchy for PE firms. Find the position that you are most qualified for and make your interest clear in your cover letter.

The VERY Short Cover Letter:

If you have a strong resume and are writing unsolicited letters to hiring managers, you might consider writing a very short “20 second” resume. Research has shown that most cover letters receive fewer than 20 seconds of review. You might get even less with busy fund managers. This technique requires more


attention and effort than longer letters because you need to convey 95% of the information in 30% of the space. If not done properly, it may appear lazy.


Your short cover letter must still cover the following: 1. What are you able to do? 2. What do you want to do? 3. What do you want the reader to do? – (Call to Action)

Example:

“My name is Albert Anderson, and I am currently expanding on my BA in Finance from the University of Michigan by trading live markets for a $500M fund in Chicago. I am responsible for trading currencies, equities, and derivatives for our Senior Portfolio Manager and conduct earnings research for our Long/Short equity fund. The discipline and quantitative skills required in this role have prepared me for the position of Analyst with ABC Capital Management.

I have attached my resume and would welcome the opportunity to meet with you.”

The Typical Cover Letter:

The typical cover letter is usually divided into three short paragraphs. Each paragraph should be no more than three sentences.

The first paragraph is your opportunity to catch the reader’s attention. Provide them with one or two concrete examples of how you can fit their needs or help them expand their business. This is the ideal place to mention anything you can give the firm that the typical applicant cannot. This section also can serve the same purpose as the “objective statement” portion of your resume. If you choose to put an “objective statement” in your resume, avoid repeating it verbatim in your cover letter.

The second paragraph should detail your work experience and qualifications in two or three sentences. Stress those accomplishments that are most relevant. Hedge funds and private equity firms will likely be unimpressed that you won a journalism award in high-school, but academic honors in college (particularly those related to finance, math, science) are relevant. Describe at least one professional achievement that could be directly transferrable to the new firm. If you worked as a trading intern, how did you help the Senior Trader operate more effectively?

The third paragraph should pinpoint the specific job you are applying for and how your skills and ambitions fit in. To keep your cover letter short you may be able to merge this paragraph into either the first or second paragraph.

The final paragraph is your call to action. You must ask for an interview or personal meeting. Hedge funds expect their employees to be proactive. Don’t be timid in asking for what you want.

Don’t forget to write company-specific cover letters, and ask your friends and family to review them before sending.


Prepare for Interview Questions

Hedge funds and private equity firms, along with consulting firms like McKinsey, are known for asking difficult, if not impossible logic questions. Financial knowledge is important, but if you have gotten to the interview stage your knowledge is probably adequate. What they are really looking for are people that exhibit a certain manner of approaching and solving logical problems. Correct answers are often less important than the thought process you communicate. These questions are designed to test your aptitude, rather than knowledge (though some common sense and basic industry knowledge are necessary).

You will certainly be asked some of the common character questions asked of most professional applicants:

“Describe some leadership roles you have played in school, at work, or in your community.”

“When have you had a disagreement with a supervisor and the result?”

“When have you felt most fully challenged and stimulated in your academic or work experiences? Most frustrated? What did you do about your frustration?”

“What aspirations do you have for yourself over the next 5 or so years, both professionally and personally?”

“What are your passions outside of work and school?”

“Why do you think you are a good fit for this position?”

Of course, your mannerisms, communication abilities, dress, charisma and other personal attributes will be evaluated at all times. This goes without saying, but arriving late to an interview will put you at an extreme disadvantage. In fact, many firms may decline to interview you for showing up 5 minutes late. Arrive early, but don’t just show up at reception. You should only arrive 3-5 minutes early. Arrive too early, and you may be an annoyance.

In addition to a personality evaluation, you will almost certainly be asked a variety of market-specific questions. If going to a fund that specializes in fixed-income, you should be proficient in the relevant terminology and understand how yields and prices are affected by events such as ratings downgrades or upgrades, changes in the level of expected inflation, changes in prevailing interest rates, etc. If applying to a fund dealing with a specific sector such as media & technology, you should be able to articulate industry trends, understand basic technical terms, and know of, and about, the leading firms. Looking up a firm’s 13f filings will enable you to research some of the fund’s top holdings before your interview.

If applying for a tech or programming position, research the type of trading platforms the firm is likely to use. Those who are seeking an executive assistant position will still be expected to understand some

http://www.sec.gov/answers/form13f.htm


aspects of the firm’s trading and should be conversant in basic economics and market terms. All applicants can benefit from a basic working knowledge of the Bloomberg Terminal.

Many roles at both hedge funds and private equity funds require basic or intermediate accounting skills. Spend some time reviewing college level accounting principles.

Below are some aptitude / logic questions you may encounter. You might not be asked any of these, but they demonstrate the type of critical thinking expected in most positions:

1. First to Forty

Q: You are asked if you would like to play a game. The first person to say “40” wins. The first player starts by picking an integer between 1 and 10. There opponent then calls out an integer that is at least 1, but no more than 10, greater than the last number. For example, if I start with 2, you can choose to say any integer between 3 and 12.

Would you like to go first? If so what number would you pick?

A: This may not be a question you run into, but it is representative of other questions you will likely receive. It tests your logical skills and game playing ability.

The key to this question is to work from the perspective of the last round. What number(s) do you want your opponent to say to set up the win for you? Since you can add between 1 and 10 to the sum of their number, your opponent must answer between 30 and 39 to ensure your win. If you say 29, your opponent must choose a number between 30 and 39 (but can’t get to 40), assuring you victory. The next step is to determine how you will get to say “29”. You need your opponent to choose a number between 19 and 28. To ensure this opportunity you will need to say “18”. In order to get to 18, you will need your opponent to choose a number between 8 and 17. Choosing 7 will force this.

Therefore, you want to go first and you will choose 7.

Note that this question can use a variety of different quantities and rules so don’t memorize the solution. Instead, understand the thought process and consider explaining it to the interviewer. You will often find that logical questions require working backwards.

2. Stack of Pennies


Q: Take a single stack of pennies as tall as the Empire State Building. Could all these pennies fit in a closet?

A: Your interviewer may have encouraged you to ask questions if something is unclear. In other questions, such as case-studies, you will be required to ask questions of your interviewer to develop your opinion. However, you should always deliberate on questions before you ask them. When you ask a question, in should be targeted and relevant.

You may be tempted to ask questions, such as how big is the closet? Or how tall is the Empire State Building. First of all, you should know the Empire State Building is approximately 1000 feet high or about 100 stories, but you could be off a large margin and still answer the question correctly. Think of it this way, if the Empire State Building is 100 stories, you could divide the stack into 100, one story tall stacks. Assuming the closet is one story tall, the entire stack of pennies could fit in a closet with square footage of only 10 pennies by 10 pennies (maybe 6in x 6in). So even if you assumed the building was 5000 feet high, and the closet was very small, the pennies would still fit. Asking unnecessary questions in this example may make it appear as if you have not understood the simplicity of the problem.

3. Pre-Historic Market

Q: Imagine you are in a place where bags of rice are the predominant currency and the following rates apply:

-You can buy 4 chickens, 3 ducks, and 2 pigs for 15 bags of rice.

-You can also buy 1 chicken, 2 ducks, and 3 pigs for 10 bags of rice.

-At the poultry market, you can trade 1 goose for 2 ducks.

How many bags of rice will be required to buy 2 chickens, 2 ducks, and 2 pigs?

A: This is a basic algebra question. Unlike other questions you may get, this one is designed to make it obvious that algebra is necessary. Some interview questions that only require basic math will be more carefully worded to make the process more difficult to discern. Let’s start with the algebra:

4 chickens + 3 ducks + 2 pigs = 15 rice

1 chicken + 2 ducks + 3 pigs = 10 rice

5 chickens + 5 ducks + 5 pigs = 25 rice


Since 5 of each animal costs 25 bags of rice, 2 of each animal will cost 2/5 of 25, or 10.

The value of a goose is irrelevant to the final answer. Unlike some more difficult questions, you will be expected to get this type of problem right. Answering incorrectly on a relatively easy question like this one will expose serious mathematical weaknesses.

4. The Oldest Question in the Book

Q: Why are manhole covers round?

A: The most obvious answer is that manhole covers are round because it prevents them from falling into the hole. Squares and most other shapes (Reuleaux Polygons are an exception) can fall through a similarly shaped hole. If you actually get this question, and have an interviewer with a very loose sense of humor, you might also suggest that manufacturing Reuleaux Triangles is just too expensive or that manhole covers are round because manholes are round.

Additional Semi-Correct Answers: Round covers are easier to move by one person by rolling them on edge and are easier to align than other shapes. Just don’t miss the obvious answer above.

5. Gas Stations

Q: How many gas stations are there in the US?

A: You may be encouraged to ask follow up questions. The interviewer will be paying more attention to your thought process than to your final answer so formulate questions carefully. There are a number of ways to approach this problem. Say you live in a town of 15,000 people and there are 5 gas stations in town. Therefore you assume the typical gas station serves 3000 people. If there are 300 million people in the US, there would need to be 100,000 gas stations. There are all sorts of questions you could ask your interviewer to get a better approximation (how many customers does the average gas station serve per day?). These type of estimation problems are common.

6. Freezing Pond:

Q: Imagine you are in Canada during a severe early-winter cold front. There is a pond with a patch of ice in the center, which expands outwards and doubles in size every minute. It takes an hour to cover the entire pond surface. How many minutes would it take for the ice to cover 25% of the pond?


A: This problem again requires you to work backwards. If you do so, it is easy to solve. Since the pond covers ¼ of the pond, in one minute it will cover half, and one minute later it will cover the whole pond. It only takes 2 minutes to go from 25% to 100% frozen. Therefore it takes 58 minutes to cover the entire surface (60 min – 2 min = 58min).


Key Hedge Fund Resources

Job Sites:

E-Financial Careers

Seeking Alpha - Jobs

The Ladders

Vault

Resume Writing Resources:

Sample Resumes

Resume Writing

Cover Letter Writing Resources:

Sample Cover Letters

More Sample Cover Letters

Cover Letter Writing

Hedge Fund Blogs:

Hedge Fund Blogger

Hedge Fund Blog Man

Hedge Fund Intelligence

Hedge Line

Hedge Fund Dynamics

NYT Dealbook

Seeking Alpha

The Hedge Fund Implode O Meter

Hedge Fund Information:

Bankers Ball

Bloomberg

CBOE

Credit Suisse Hedge Fund Index

HedgeFundJobList

SEC – Hedge Funds

The Financial Times

The Wall Street Journal

Wikipedia – Hedge Funds

Credentials:

The CFA Institute

CAIA

CHA

Series 7

http://www.efinancialcareers.com/

http://jobs.seekingalpha.com/

http://www.theladders.com/

http://www.vault.com/

http://www.bestsampleresume.com/financial-resumes.html

http://essayinfo.com/resume/financial_value.php

http://www.vault.com/nr/newsmain.jsp?nr_page=3&ch_id=306&article_id=11974616&cat_id=1042

http://jobsearch.about.com/od/coverlettersamples/a/finance.htm

http://www.quintcareers.com/cover_letter_samples.html

http://richard-wilson.blogspot.com/

http://www.hedgefundblogman.blogspot.com/

http://www.hedgefundintelligence.com/

http://www.hedgeline.com/

http://hedgefunddynamics.com/

http://dealbook.blogs.nytimes.com/

http://www.seekingalpha.com/

http://hf-implode.com/

http://www.bankersball.com/

http://www.bloomberg.com/

http://www.cboe.com/

http://www.hedgeindex.com/hedgeindex/en/default.aspx?cy=USD


http://www.sec.gov/answers/hedge.htm

http://www.financialtimes.com/

http://www.wsj.com/

http://en.wikipedia.org/wiki/Hedge_fund

http://www.cfainstitute.org/


http://chadesignation.org/CHA-Designation-Program-Benefits.html

http://www.sec.gov/answers/series7.htm


Hedge Fund Profiles

The Top 10 Hedge Fund / PE Firms

rank firm assets

1 JPMorgan Asset Management $44 billion

2 Bridgewater Associates $36 billion

3 Farallon Capital Management $36 billion

4 Renaissance Technologies $33 billion

5 Och-Ziff Capital Management $33 billion

6 D.E. Shaw Group $32 billion

7 Goldman Sachs Asset Management $29 billion

8 Paulson & Co. $29 billion

9 Barlcays Global Investors $26 billion

10 Man Investments $20 billion

JP Morgan Asset Management

JP Morgan Asset Management, an arm of JP Morgan Chase, has over $1.2 trillion in managed assets and

$1.6 trillion in assets under supervision. As of 2008, JP Morgan Asset Management also was the US’

largest hedge fund, managing more than $40 billion in alternative assets and has been providing hedge

fund products for more than 14 years. JP Morgan is also one of the world’s leading investment banks,

and generates much of its revenue from its retail and commercial banking units.

Leadership: Jes Staley, CEO of JP Morgan Asset Management

Assets Under Management: $44.7B (in alternative investments)

Employees: 650 professionals

Key Employees: Jes Stayley, CEO

Locations: 50 internationally

Primary US Office:

JP Morgan Asset Management

245 Park Avenue

New York, NY 10167

Ph: 212.483.2323

Fax: 212.648.1510

Website: www.jpmorgan.com/pages/jpmorgan/am

More info on jobs with JP Morgan Asset Management can be found at:

https://careers.jpmorganchase.com/cm/cs?pagename=Chase/Href&urlname=jpmc/careers/lob


www.jpmorgan.com/pages/jpmorgan/am

https://careers.jpmorganchase.com/cm/cs?pagename=Chase/Href&urlname=jpmc/careers/lob

Bridgewater Associates

Bridgewater Associates was founded by Ray Dalio in 1975 and is an employee owned investment

manager. The firm primarily provides its services to pooled investment vehicles, charitable organizations,

corporations, state or municipal government entities, and foreign governments. It manages separate client

focused equity and fixed income portfolios. The firm also manages hedge funds for its clients. It invests

in the public equity and fixed income markets across the globe. The firm’s primary hedge fund strategy is

known as “Pure Alpha”.

Responsibilities and compensation depend on people's achievement rather than their seniority. “All

employees are not merely encouraged to express their opinions—they are required to.”

Leadership: Ray Dalio, Founder and CEO

Assets Under Management: $80 Billion

Strategies: Fixed income, Currency, Equity and Commodity Trading

Employees: 650

Key Employees: Ray Dalio, Founder and CEO; Hope Woodhouse, Chief Operating Officer; Gregory S.

Jensen, Co-Chief Investment Officer, Giselle Wagner, Managing Director

Locations: Westport, CT

Headquarters:


http://investing.businessweek.com/research/stocks/private/person.asp?personId=28437917

http://investing.businessweek.com/research/stocks/private/person.asp?personId=28437917


One Glendinning Place

Westport, CT 06880

Ph: 203.226.3030

Fax:203.291.7300

Website: www.bwater.com

More info on jobs with Bridgewater Associates can be found here:

http://www.bwater.com/home/careers.aspx

http://www.bwater.com/

http://www.bwater.com/home/careers.aspx

Farallon Capital Management

Farallon Capital Management was founded by Thomas Steyer in 1986 and based in San Francisco, CA.

Steyer is also Managing Director at Hellman and Friedman. Farallon invests in both public and private

debt, equities, private investments, and real estate. For the year of 2008, Farallon was ranked third in

Alpha's hedge fund rankings. Farallon manages more than $35 billion and has recently suspended

withdrawals from their largest fund after receiving redemption requests for around 25% of the fund's

capital.

Farallon's investment philosophy is to invest in businesses and securities that are undergoing change.

Investments are primarily those in which a known or expected event (a merger, restructuring,

recapitalization or other major change) will cause an appreciation in the value of the particular

investment. Investments include public and private debt and equity securities, direct investments in

private companies and real estate.

Leadership: Thomas F. Steyer, Founder and Co-Managing Partner

Assets Under Management: $36 billion

Strategies: Risk Arbitrage, Equity, Fixed-Income, Restructuring, Capitalization

Employees: 150 professionals

Key Employees: Thomas Steyer, Co-Managing Partner; William F. Duhamel, Managing Member; Alice

Evarts, Managing Member



Locations: San Francisco, CA

Headquarters:

Farallon Capital Management

One Maritime Plaza, Suite 2100

San Francisco, CA 94111

Ph:415.421.2132

Website: www.faralloncapital.com

http://www.faralloncapital.com/

Renaissance Technologies

Renaissance Technologies was founded by Jim Simons in 1982. Renaissance trades globally and is well

known for its use of complex mathematical models and “black box” trading. In fact, Renaissance employs

specialists without financial backgrounds including physicists and astrophysicists, statisticians, and

mathematicians. Renaissance’s primary quant fund is the Nova Fund and trades are primarily executed

automatically. Renaissance also operates the Medallion Fund. The Medallion fund has $5 billion in assets

and has produced an annual historical performance of around 35%. The firm employs 250 employees,

manages more than $20 billion and is based in New York with global offices in London and Milan.

Leadership: Jim Simons, Founder and CEO


Strategies: Quantitative Trading

Employees: 250

Key Employees: Jim Simons, Founder and CEO; Stephen Daffron, Chief Operating Officer, Robert

Lourie, Head of Futures Research

Locations: London, New York, Long Island, Milan, San Francisco

Headquarters:



Renaissance Technologies LLC

600 Route 25A

East Setauket, NY 11733

Ph: 212.486.6780

Website: www.rentec.com

For more info on jobs with Renaissance Technology: www.rentec.com/job_openings.html

http://www.rentec.com/

http://www.rentec.com/job_openings.html

Och-Ziff Capital Management

Och-Ziff was founded in 1994 by Daniel Och, together with the Ziff family to manage family assets. Och-

Ziff provides alternative asset management and hedge fund services for more than 700 fund investors

through five locations in the U.S., Europe, and Asia, managing more than $30 billion in assets globally.

Och Ziff Capital Management Group is a holding company, and its primary assets are its ownership

interests in the Och-Ziff Operating Group entities, which are held indirectly through two intermediate

holding companies, Och-Ziff Corp and Och-Ziff Holding. The Och-Ziff Operating Group consists of OZ

Management LP (OZ Management), OZ Advisors LP (OZ Advisors), OZ Advisors II LP (OZ Advisors).

The Company operates through a single operating segment, Och-Ziff Funds.

Och-Ziff is publicly traded under the ticker OZM. They went public in late 2007. Shares traded as high as

$28.00. As of February, 2009 OZM traded for just over $5, indicating a market value of slightly under $2

billion.

Leadership: Daniel Och, Founder and CEO


Strategies: Equities, Convertibles, Debt Instruments, Bank Debt, High-Yield Debt, Options, Futures,

Forwards, Swaps, Other Derivatives, Private Securities and Assets, and Other Investments.

Employees: 150



Key Employees: Daniel Och, Founder and CEO; David Windreich, Executive Managing Director; Joel

Frank, Chief Financial Officer

Locations: New York, London, Hong Kong, Tokyo, Bangalore, and Beijing

Headquarters:

Och-Ziff Capital Management

Nine West 57th Street

39th Floor

New York, New York 10019

Ph: 212.790.0000

Website: www.ozcap.com

http://www.ozcap.com/

DE Shaw Group

The D. E. Shaw group is a global investment and technology development firm with more than 1,600

employees; approximately $30 billion in investment and committed capital as of January 1, 2009; and

offices in North America, Europe, and Asia. The firm was founded in 1988 by David E. Shaw, who now

is chief scientist for D.E. Shaw Research Group.

D.E. Shaw’s activities range from computer-based quantitative investment management to the

development and financing of technology-oriented business ventures. Both are tied together by a common

focus on the economic implications of technological innovation. Since its organization in 1988, the firm

has earned an international reputation for financial innovation and technological leadership, and has been

described as “the most intriguing and mysterious force on Wall Street.

D.E. Shaw is known for its difficult recruiting process in which less than 1 out of 100 applicants receive

an offer. Shaw particularly targets the math and science departments of major universities

Leadership: David Shaw, Founder


Strategies: Mathematical Trading, Statistical Arbitrage, Fundamental Trading, Technology, Global

Equities

Employees: 1,600



Key Employees: David Shaw, Founder; Christopher Zabak, Chief Financial Officer and Managing

Director; Eric Wepsic, Managing Director.

Locations: New York, London, Silicon Valley, Houston, Kansas City, San Francisco, Washington D.C.,

Bermuda, and Hyderabad & Gurgaon, India

Headquarters:

D.E. Shaw Group

39th Floor, Tower 45 120

West Forty-Fifth Street

New York, NY 10036

Ph: 212. 478.0000

Fax: 212.478.0100

Website: www.deshaw.com

For more info on jobs with D.E. Shaw Group: http://www.deshaw.com/JobOpportunities.html

http://www.deshaw.com/

http://www.deshaw.com/JobOpportunities.html

Goldman Sachs Asset Management

Goldman Sachs Asset Management (GSAM) is a leading provider of Alternative Investment

opportunities to institutions and high net worth individuals worldwide. Goldman’s Hedge Funds

Strategies (HFS) team offers diversified exposure to leading hedge fund managers. They select managers

and construct portfolios of hedge funds across four primary sectors: Relative Value, Event Driven, Equity

Long/Short and Tactical Trading. GSAM also offers Private Equity Fund of Funds, Direct Hedge Funds,

Private Equity Direct Funds, and Private Real Estate Funds.

GSAM is separated into two divisions, and includes Asset Management, which provides large institutions

and very wealthy individuals with investment advisory, financial planning services (Private Wealth

Management & AYCO), and the management of mutual funds as well as alternative investments.

Goldman Sachs also operates its own private equity arm, GS Capital Partners. It has invested over $17

billion in the 20 years from 1986 to 2006. One of the most prominent funds is the GS Capital Partners V

fund, which comprises over $8.5 billion of equity.

Goldman Sachs Asset Management is part of Goldman Sachs Group Inc. Goldman Sachs Group Inc. is a

publicly traded company trading under the ticker GS.

Assets Under Management: $32 billion in alternative investments

Leadership: Edward C. Forst, Co-Head Investments

Strategies: Relative Value, Event Driven, Equity Long/Short and Tactical Trading



Employees: 30,000 with Goldman Sachs Group. 5000+ in Asset Management.

Key Employees: Edward Forst, Co-Head Investments; Jogi Narain, Executive Director Europe; Joel

Horowitz, Executive Director Commodities

Locations: Most major financial centers including: New York, Chicago, Los Angeles, Boston, San

Francisco, London, Paris, Hong Kong, Tokyo, Beijing

Headquarters:

Goldman Sachs Asset Management

85 Broad Street

New York, NY 10004

Ph: 212.902.1000

Website: www2.goldmansachs.com/gsam

For more info on jobs with Goldman Sachs: http://www2.goldmansachs.com/careers/index.html

http://www.deshaw.com/

http://www2.goldmansachs.com/careers/index.html

Paulson & Co.

Paulson & Co. was founded by its current President, John Paulson. Paulson & Co., Inc. had assets under

management of only $12.5 billion in June of 2007 (95% from institutions), which leapt to $36 billion as

of November 2008. Under Paulson’s supervision, Paulson & Co has capitalized on the problems in the

foreclosure and Mortgage Backed Securities (MBS) markets and has gained both fame and assets as their

risky short positions in MBS paid off. In fact, in the first half of 2007 alone, The Paulson Credit

Opportunities Fund gained 303 percent .

Paulson & Co. (PCI) is an employee owned hedge fund. The fund primarily provides its services to

pooled investment vehicles along with accounts for banking or thrift institutions, pension and profit

sharing plans, and corporations. The firm invests in the public equity markets while employing merger

arbitrage, event-driven, and long/short strategies. The fund was founded in 1994 and is based in New

York, New York.

2007 was a very big year for Paulson, as his predictions came to fruition and he became a multi-

billionaire almost overnight. The subprime mortgage market collapsed, and Paulson and his investors

reaped the rewards.

Among, Paulson & Co.’s high profile employees is recent addition former Federal Reserve Chairman,

Alan Greenspan to its Advisory Board.


Leadership: John Paulson, Founder and CEO



Strategies: Merger Arbitrage, Risk Arbitrage, Event-Driven, and Long/Short Strategies

Employees: 50

Key Employees: John Paulson, Founder and CEO; Paolo Pellegrini, Portfolio Manager

Locations: New York, NY

Headquarters:

Paulson & Co. Inc.

1251 Avenue of the Americas

New York, NY 10020

Ph: 212.856.2221

Website: www.paulsonco.com

http://www.paulsonco.com/

Barclays Global Investors

Barclays Global Investors (BGI) manages close to $2 trillion in client assets, about $25 billion of which is

in hedge fund strategies and alternative investments. BGI operates as an investment management

subsidiary of Barclay’s Bank, a UK bank. Barclays Global Investors created the first index strategy in

1971 and the first quantitative active strategy in 1978. Barclay’s is known for inventing the first passive

index strategy for its institutional clients and later pioneered the exchange traded fund (ETF).

BGI bases its US operations out of San Francisco and primarily provides its services to individuals and

institutions. The firm manages separate client-focused portfolios. It also manages pension funds and

retirement plans for its clients. The firm invests in the public equity, fixed income, and alternative

investments markets across the globe. It also makes investments in ADRs and GDRs. The firm makes its

equity investments in value stocks of small-cap, mid-cap, and large-cap companies. It typically employs

an indexing strategy to create its equity portfolio.


Leadership: Blake Grossman, CEO

Strategies: Cash Management, Currencies, Long-Short Strategies, Arbitrage, Securities Lending,

Employees: 800

Key Employees: Blake Grossman, CEO; Matthew H. Scanlan, Head of Americas Institutional Business;

Chris McCrum, Chief Administrative Officer; Marie Chandoha, Head of US Fixed Income Business



Locations: San Francisco, London, Sydney, Tokyo, Toronto

Headquarters:

Barclays Global Investors

400 Howard Street

San Francisco, CA 94105

Ph: 415.597.2000

Website: www.barclaysglobal.com

For more information on jobs with Barclay’s Global Investors: www.barclaysglobal.com/about/careers/

http://www.barclaysglobal.com/

http://www.barclaysglobal.com/about/careers/

Man Investment Group

Man Investment Group is a subsidiary of Man Group plc and is a global leader in alternative investments,

managing more than $50 billion for institutional and private clients. Man Investments is focused

exclusively on alternative investments and through its core investment managers. The firm employs 1800

employees worldwide and has US offices in New York and Chicago.

Man Group provides alternative investment products and solutions, and broking services worldwide. The

company offers asset management services, including access to hedge funds, leveraged finance and

convertible bonds, and other asset classes for private and institutional investors, pension funds, and

financial institutions. Man distributes fund of hedge funds, and open-ended products in its hedge fund

asset class through a network of distributors, such as banks, securities brokers, and discretionary

investment managers in the United Kingdom, Switzerland, the United States, Australia, Japan, Canada,

the Middle East, Hong Kong, Singapore, Uruguay, and the Bahamas. Man Group plc also acts as a broker

of futures, options, and other equity derivatives for institutional and private clients. The firm was founded

in 1994. It was formerly known as E D & F Man Group plc and changed its name to Man Group in 2000.

Man Group plc has its US headquarters in New York, with global headquarters in London, UK.


Leadership: Uwe Eberle, CEO

Strategies: Equity Hedge, Event Driven Arbitrage, Distressed & Credit, Relative Value, Variable Equity,

Commodity & Macro

Employees: 1800



Key Employees: Uwe Eberle, CEO; Alicia Derrah, Head of Finance; Riva Waller, Head of Investment

Structures Group; Rhowena Blank, Head of Operations

Locations: New York, Chicago

Headquarters:

One Rockefeller Plaza, 16th Floor

New York, NY 10020

USA

Ph: 646.452.9700

Fax: 646.452.9701

Website: www.maninvestmentusa.com

For more info on jobs with Man Group: http://www.mancareers.com/

http://www.maninvestmentusa.com/

http://www.mancareers.com/

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