What exactly does a hedge fund manager do?

What are some intelligent questions to ask a hedge fund manager who focuses on credit trading?

  • I have an interview for an internship with a hedge fund tomorrow. I don't want to ask frivolous questions. What would you ask and why? Market-related questions are great!

  • Answer:

    What are the credit qualities of your portfolio, i.e., do you focus on distressed debt, marginal credits or investment quality credits? How do you implement trades? Do you use derivatives like credit default swaps? Is your profitability based on choosing the right credits or macroeconomic events like changes in credit spreads and interest rates? How do you get leverage for your trades especially for distressed credits? Do you trade any structured products like CDO's? If so, what kind of credit risk do you typically take in such structured products? How do you handle defaults? Would you typically exit stage left or participate in a bankruptcy? Tell me a good story of a trade that was great. Boy that was sure a brain dead trade Jon Corzine did, huh?

Wake2014 at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

intelligent questions for investors: have you beat a relevant index last year. how about the years before that is that index really relevant. not necessarily good to ask if you want to work there ....

Erik

If you don't know anything about the business I would keep quiet and just listen. You don't want to make a fool of yourself!

Raysor

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.