COLUMBIA SCHOOL OF BUSINESS

HEDGE FUND SNAPSHOT: INDUSTRY TRENDS, INTERVIEW GUIDELINES AND COMPENSATION INFORMATION

Presented by Glocap Search LLC

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GLOCAP SEARCH LLC

Glocap is one of the largest hedge fund, fund of funds and asset management search firms in the country. Recently completed searches have been with leading alternative and traditional public investment management firms, ranging from $100M to several billion dollars in assets under management. Hedge Fund client asset classes include equities, debt, commodities, and currencies. Hedge Fund client strategies include Long/Short Value, Market Neutral, Event Driven, Global Macro, Fixed Income Arbitrage, Quantitative/Statistical Arbitrage, and Convertible Arbitrage, for example. The majority of Glocaps Hedge Fund, Fund of Fund, and Asset Management clients are in the United States, concentrated in NY, CT and CA. Glocaps Hedge Fund and Asset Management practice also has a European presence, particularly in the UK.
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DISCUSSION TOPICS

Hedge Fund Market Trends and Recruiting Trends Preparing for Hedge Fund Interviews Career Tracks and Compensation at Hedge Funds Q&A/Resume Collection

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MARKET TRENDS AND RECRUITING TRENDS

Market trends: Hedge fund industry still in growth mode Continued activity in long/short, event-driven, pairs trading, global macro, some pick-up in merger arbitrage Continued interest in Spitzer investigations/SEC regulations Evolution to two tiers of hedge funds: start-up versus established funds Recruiting trends: Job market is strong and steady but Company search is for perfect fit Growth mode for hedge funds not similar to growth mode for investment banks, consulting firms, etc. No armies of HR/Recruiting Teams Silver bullet mentality No formal hiring season

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MARKET TRENDS AND RECRUITING TRENDS

Recruiting trends (continued): Highly fragmented market for job seekers Personal network Alumni network Recruiters Job posting boards On-campus recruiting Analyst Generalist Industry specialist Trader Execution Profit & Loss

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HOW TO PREPARE FOR HEDGE FUND INTERVIEWS

Educate yourself on Hedge Funds Read books on Investing, and on different Hedge Fund strategies and managers
Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor by Seth A. Klarman Market-Neutral Investing : Long/Short Hedge Fund Strategies by Joseph G. Nicholas Stock Market Wizards : Interviews with America's Top Stock Traders by Jack D. Schwager The New Market Wizards : Conversations with America's Top Traders by Jack D. Schwager

Follow the markets on a regular basis and develop a clear point of view Keep up on current events that may be affecting the Hedge Fund industry and think about how this may affect the industry going forward

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HOW TO PREPARE FOR HEDGE FUND INTERVIEWS

Try to think about how the skills youve learned in other jobs can be transferable to a Hedge Fund position. Identify which shop would be best for your investment values and skill set, in terms of: Asset Class Equity, fixed income, currencies, etc Company Focus/Organization Industry specific vs generalist Investment Strategy/Style/Horizon Long/short, macro, distressed debt, risk arb, etc Momentum, event driven, etc Long term vs short term Look for a shop whose corporate structure and culture is in line with your values Size of Fund ($, number of employees) Inception Date/Track Record Personality fit

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HOW TO PREPARE FOR HEDGE FUND INTERVIEWS

Set expectations for a typical Hedge Fund interviews Be prepared to talk about long/short stock ideas ON THE SPOT Personal Account/Mock Portfolios How do your investment ideas differentiate you Is there consistency throughout your investment ideas Be prepared to do more formal case studies on different stocks and to present your ideas to a group of employees You may have as little as a few hours to prepare this or as long as one week

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CAREER TRACKS AND COMPENSATION

CAREER TRACKS: Difference between sell-side and buy-side career tracks Less structured Less formal Fewer tiers/titles Analyst career track general rule of thumb 2-3 years as analyst 1-3 years as senior analyst PM Trader career track general rule of thumb 1-3 years as execution trader 1-3 years as trader/senior trader with P&L responsibilities

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CAREER TRACKS AND COMPENSATION

COMPENSATION: Experienced hires (MBA students) with little to no prior hedge fund/asset management experience Analyst: BASE: $90k-$120k BONUS: 1-2 times base Experienced hires (MBA students) with little to no prior hedge fund/asset management experience Execution Traders: BASE: $50k-$80k BONUS: 1 times base

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HEDGE FUND SNAPSHOT: INDUSTRY TRENDS, INTERVIEW GUIDELINES AND COMPENSATION INFORMATION

QUESTION & ANSWER

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