Hedge Fund Case Study: In-House

In-house hedge fund case studies are usually a make-it or break-it point of the interview process.  These are generally timed and stressful situations to be in.

Generally hedge funds will give you 2 or 3 hours to read and complete a case study on-site.  The fund will generally give you all the material you would need to complete the project: 10-K, 10-Q, Recent Equity Research, Most recent Earnings Transcript, Recent Press Releases, etc.

Instructions: You have 3 hours to complete the project.  Finish the financial model.  After you are done we will discuss the company and please tell us if you like it on the long or short side.

Hour 1: Spend time reading everything you can. Start with the business description in the 10-K, then knock out the latest earnings press release, equity research, and finish with the earnings transcript.  Make sure to understand company guidance and what management plans to do next year.

Hour 2: Build out the financial model.  Concentrate on management’s estimates for next year and also do some reading on the industry to see if you can develop an opinion on where the industry is going next year.

Hour 3: Start building your thesis and understand if this is a long or short and why.  Challenge your assumptions, know the bear/bull thesis, and make sure to backup your argument with valid points.

Get Prepared: The Street-of-Walls Hedge Fund team has built out an in-depth interview guide focusing on everything you need to know to get a hedge fund job.

Hedge Fund Case Studies:

  • Retail Case Study (Long)
  • Healthcare Case Study (Short)
  • Financials Case Study (Long)
  • Special Situations Case Study (Long)