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 BCG Interview Course 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).
Sample Hedge Fund Job Interview Questions:
First to Forty:
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.
The Oldest Question in the Book
Why are manhole covers round?
The Freezing Pond
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?
For answers to these and other hedge fund job interview questions you can download the free e-book, Guide to Getting a Hedge Fund Job.
This guide has interview tips, hedge fund resume BCG Case Course and cover letter advice, lists of hedge funds and much more… and its completely free.
Dave Tarcap conducts hedge fund research particularly with regard to hedge fund employment. He has worked for Merrill Lynch along with financial consulting firms.