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Long-Only Hedge Funds: A Cozy Career, or a Complete Contradiction?

Mergers and Inquisitions

When you hear the term “long-only hedge funds,” your first thought might be: “How can a hedge fund hold only long positions? Doesn’t that contradict the term ‘hedge fund’? Why would investors pay high fees for what is effectively a mutual fund?” These are all good questions.

Funds 52
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Evaluating Asset Management Companies: Key Metrics and Methodologies

MergersCorp M&A International

Discounted Cash Flow (DCF) Analysis: A DCF model is often used to estimate the intrinsic value of the company based on projected future cash flows. Key metrics used include Price/Earnings (P/E) ratios, Price/AUM ratios, and enterprise value ratios (EV/EBITDA). An AMC with a strong compliance track record is often viewed favorably.

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10-17-2023 Newsletter: How Much Money Should You Have Saved by 30?

OfficeHours

Other investments may be more protected from economic impacts and can help with diversification. If you do, you may be able to afford to have less in your emergency fund in case something goes wrong (i.e. So you want to pursue a role in Investment Banking/Lateral Banking?

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Project Finance vs. Corporate Finance: Careers, Recruiting, Financial Modeling, and More

Mergers and Inquisitions

In other words, if you lend $500 million to fund a new offshore wind development, what are your chances of losing money? Therefore, you’ll probably have to focus on high-profile assets that operate more like normal companies, such as large airports – or research funds or large companies in the sector.

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Wealth Management vs. Investment Banking: Career Deathmatch

Mergers and Inquisitions

You will very rarely get exposed to the type of financial modeling that bankers complete: 3-statement models , DCF models , M&A models , LBO models , and so on. ” Interviews are broader than IB interviews and require knowledge of asset allocation, economics, and and financial markets, but far less specific technical knowledge.

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Venture Capital Interview Questions: What to Expect and How to Prepare

Mergers and Inquisitions

Q: Why not private equity, growth equity, hedge funds, or entrepreneurship? A: You’re most interested in tech or life science startups, and PE funds and hedge funds do not work with these companies in the same way, as they don’t directly fund their development activities. Q: Which current startup would you invest in?

Capital 59
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Capital Markets vs. Investment Banking: Deals, Careers, Recruiting, Exits, and Offer Decisions

Mergers and Inquisitions

Note that while Leveraged Finance is technically in “capital markets,” it is closer to groups like M&A because most of the work relates to funding for acquisitions and leveraged buyouts. This deal type distinction matters because your deal experience determines your skills, hours, compensation as you advance, and exit opportunities.