All Posts By

Kelvin Jiang, CFA

11 Most Popular Hedge Fund Strategies

By | Career Insights | No Comments

It’s important to join a hedge fund with an investment strategy that fit you in order to have longevity in this career. Today we’ll go over the most popular hedge fund strategies. Let’s start with an overview of the hedge fund industry.

Hedge funds are private investment vehicles aimed to generate positive absolute returns for institutional clients and high-net-worth individuals.

Hedge funds are usually structured as partnerships. Portfolio managers are typically general partners of the fund with investment decision-making responsibilities. They hire research analysts to cover existing and potential investments, who are typically aligned by asset class (for example, debt vs. equity), industry (financials vs. consumer), and geography (emerging markets vs. U.S.).

The hedge fund industry has grown substantially over the past 2 decades and can no longer be considered a homogeneous asset class. There are estimated 9,000 hedge funds in the U.S. today with $2 trillion in assets under management.

Read More

Detailed Explanation of the Hedge Fund Career Path

By | Career Insights | One Comment

The typical hedge fund career path begins 1 – 2 years post-college. Unlike large banks or asset management firms with comprehensive training programs, hedge funds are small, nimble operations with few resources to teach someone analytical finance from the ground up. Getting into a hedge fund straight out of college is difficult.

The traditional post-college career path to a hedge fund are investment banking and sell-side research. Both are great at giving you a solid foundation in company research and financial valuation, which involves analyzing company and industry trends, modeling and forecasting, valuation, and presenting your ideas in a clear, succinct way.

Besides investment banking and sell-side research, the next most common career path to hedge funds is management consulting. Consultants would get the same fundamental skillset for hedge funds, but with more emphasis on company and industry analysis over financial valuation.

Read More

How to Find Your Investment Style

By | Investment Process | 2 Comments

If you are preparing for hedge fund interviews, I know the level of exhaustion and stress that you are going through. There are many technical questions to prepare for. Developing and presenting an investment pitch is time-consuming. On top of that, there’s a constant self-doubt of whether you are on the right track with your pitch. But first things first. Before you start your investment pitch, here’s a critical question for you to answer: what’s your investment style?

Read More

How to Find a Great Stock Pitch Idea

By | Investment Process | One Comment

Pitching a stock is the most important part of the interview process for hedge funds and asset management. After you’ve submitted a polished resume and telling your story in your first round interview, you’ve been asked to pitch a stock. Now what? How do you find a great stock pitch idea?

Your first instinct might be to go on a research portal like SeekingAlpha and SumZero to get inspirations.

The issue is, reading reports is a great way to get other people’s opinions on a stock. But that shouldn’t be your starting point.

Read More

19 Best Investing Books on Wall Street

By | Investment Process | 2 Comments

Let’s face it. When it comes to learning how to invest, most college and business school textbooks just aren’t cutting it. We need to build our own collection of the best investing books to hone the craft.

Academic classes teach you how to put together an income statement or how to run multi-variable regressions in Stata. Those are important skills to have, but they don’t give you the full picture on how to invest. I know, because I’ve taken a lot of them.

Investing takes a tremendous amount of self-learning. It takes an entrepreneurial effort to research and discover the best books on investing, and then extract golden nuggets of knowledge from a pile of regurgitated nonsense.

This is why every hedge fund interviewer would ask you what books have you read and why.

They want to see how much time you’ve spent on self-learning and hear what you’ve learned from it.

Read More