Behavioural Interview Flashcards
What would you do if you saw someone cheating on a test?
- Obviously, an unfortunate situation to be in, never want to cause someone else distress
- However, I would feel like I have to report them to the professor as them cheating could affect the exam grade curve and hence could affect people who did the exam honestly
A team member isn’t contributing. You confront them. They still don’t contribute. What next?
Ask them if there are any resources or something that may help them. I would also check if they are having any personal issues, and would advise them to go and speak to management about them. If nothing changes, and its from a lack of effort, report to supervisor.
How do you handle a client who goes against the company policy?
I would make sure that the client is aware of company policy, as it could be a mistake from them. I would flag to supervisor as the policy breach could get the company in trouble, whilst emphasising the reason that the client gave, which would hopefully be just a mistake on their part
Walk me through your CV.
- Undergrad at University of York in Economics and Finance. Graduated top of class and won head of department prize. Now studying Masters in Finance at University of Warwick.
I have also recently attended the HEC Paris summer school for Investment banking and international finance.
- I have some previous experience in accounting and wealth management, but my main experience is from my entrepreneurial activities such as running my trading and investing community, as well as building an algorithmic trading portfolio. During this time I worked with 2 of my friends to develop trading strategies based off of technical analysis, and then we performed analysis such as backtesting, monte carlo or walk forward to determine the strategies historical performance, and then combined these strategies into a portfolio. This has very much developed my teamwork, quantitative and analytical skills. Outside of this, I also have a background in volunteering, finance society participation and another entrepreneurial venture surrounding buying and selling clothes.
As for something a little more unique about me, I am an avid football fan and am a Manchester United supporter, as well as being an FA qualified referee.
Walk me through your CV.
- Undergrad at University of York in Economics and Finance. Graduated top of class and won head of department prize. Now studying Masters in Finance at University of Warwick.
I have also recently attended the HEC Paris summer school for Investment banking and international finance.
- I have some previous experience in accounting and wealth management, but my main experience is from my entrepreneurial activities such as running my trading and investing community, as well as building an algorithmic trading portfolio. During this time I worked with 2 of my friends to develop trading strategies based off of technical analysis, and then we performed analysis such as backtesting, monte carlo or walk forward to determine the strategies historical performance, and then combined these strategies into a portfolio. This has very much developed my teamwork, quantitative and analytical skills. Outside of this, I also have a background in volunteering, finance society participation and another entrepreneurial venture surrounding buying and selling clothes.
As for something a little more unique about me, I am an avid football fan and am a Manchester United supporter, as well as being an FA qualified referee.
Walk me through your CV.
- Undergrad at University of York in Economics and Finance. Graduated top of class and won head of department prize. Now studying Masters in Finance at University of Warwick.
I have also recently attended the HEC Paris summer school for Investment banking and international finance.
- I have some previous experience in accounting and wealth management, but my main experience is from my entrepreneurial activities such as running my trading and investing community, as well as building an algorithmic trading portfolio. During this time I worked with 2 of my friends to develop trading strategies based off of technical analysis, and then we performed analysis such as backtesting, monte carlo or walk forward to determine the strategies historical performance, and then combined these strategies into a portfolio. This has very much developed my teamwork, quantitative and analytical skills. Outside of this, I also have a background in volunteering, finance society participation and another entrepreneurial venture surrounding buying and selling clothes.
As for something a little more unique about me, I am an avid football fan and am a Manchester United supporter, as well as being an FA qualified referee.
Which was your preferred class at university?
Between finance and economics, id preferred my finance modules as I found them more applicable to real life and you can apply the concepts you learn. For a specific module, my favourite was probably mathematical economics, as it looks at game theory and peoples behaviour in game settings.
Tell me about yourself
- Undergrad at University of York in Economics and Finance. Graduated top of class and won head of department prize. Now studying Masters in Finance at University of Warwick
- During 1st year of undergrad got introduced to world of trading and investing through a friend
- During Covid pandemic in my 2nd year, had a lot of free time and nurtured my interest
- I actually managed a portfolio of quantitative strategies up to about 30k trading Dow Jones
- Encouraged me to do a masters in finance to really learn more about the finance world.
- Now want to work in Asset Management as I have a desire to learn how to invest and build portfolios from the best in the business.
- I am really interested in Football, support Man United and am a qualified FA referee.
Tell me about yourself
- Undergrad at University of York in Economics and Finance. Graduated top of class and won head of department prize. Now studying Masters in Finance at University of Warwick
- During 1st year of undergrad got introduced to world of trading and investing through a friend
- During Covid pandemic in my 2nd year, had a lot of free time and nurtured my interest
- I actually managed a portfolio of quantitative strategies up to about 30k trading Dow Jones
- Encouraged me to do a masters in finance to really learn more about the finance world.
- Now want to work in Asset Management as I have a desire to learn how to invest and build portfolios from the best in the business.
- I am really interested in Football, support Man United and am a qualified FA referee.
Tell me about yourself
- Undergrad at University of York in Economics and Finance. Graduated top of class and won head of department prize. Now studying Masters in Finance at University of Warwick
- During 1st year of undergrad got introduced to world of trading and investing through a friend
- During Covid pandemic in my 2nd year, had a lot of free time and nurtured my interest
- I actually managed a portfolio of quantitative strategies up to about 30k trading Dow Jones
- Encouraged me to do a masters in finance to really learn more about the finance world.
- Now want to work in Asset Management as I have a desire to learn how to invest and build portfolios from the best in the business.
- I am really interested in Football, support Man United and am a qualified FA referee.
Your professor accidentally sends you confidential information intended for another student. What do you do?
Avoid reading the contents of the email and email the professor informing him of the situation. I would then go and speak to student services to see if there is anything else I should do before deleting the email.
You are working on a secret project. Your previous manager asks about it. He says he wants information on the project to help with an important decision. What do you do?
I think it would depend on who set the ‘secret project’. If it was someone superior to my manager, I would recommend that the manager went and spoke to them and received approval. If someone less senior to my manager, definitely inform them.
What are your strengths?
- Main strength is intellectual curiosity - I always want to learn more. I read a lot of very different books; for example have read Stephen Hawkings ‘brief answers to the big questions’ as well as a lot of productivity books like ‘The compound effect’ or ‘Mindset’. I think this is why I am interested in finance, as you can always learn more in the field.
Another one of my main strength is industriousness - I finished top of my cohort at undergraduate level, despite also running a business, making a quantitative portfolio, balancing social life and even having a girlfriend.
I would also say I am analytical; I like gathering and finding out information, and feel like you should try and gather as much information as possible before making decisions. THis is why I like researching companies for discretionary investment ideas, as there are always ways to improve your valuation or assessment of a company.
What are your weaknesses?
I think my main weakness is that I occassionally lack focus. For example, I will be doing a task like focusing on Uni work, and then get side tracked reading something interesting on quora about space or something like that. However, I have attempted to mitigate this weakness by buying a productivity planner which sets out which tasks I need to complete over a day / week and this has helped tremendously.
I’d also say that I sometimes take on too much responsibility in group projects. I always want to achieve the best outcome, so will occasionally take on more than my fair share just so I know that the work has been done correctly.
I would say that I am occasionally lack focus public speaking if I have not sufficiently prepared before hand.
What motivates you in life?
I think there are a lot of factors but one of my main ones is probably that I push myself to be better every day and learn more and more. I always try to improve all areas of my life, by learning but then of course also havign social aspects as well. Ideally I can combine these and meet a lot of really interesting people, learn from them and enjoy the work I am doing
What would make you satisfied?
Working in a team of like-minded individuals on meaningful projects. I find it much easier to work alongside people who are very invested in the project, and are driven and motivated people.
Why do you want to work for Wealth Management division
My interest in the Private Banking industry stems from a work experience placement in the wealth management industry in my earlier years. I found the placement very rewarding, as you can clearly see the impact that private wealth management has on individuals and families, and this impact can last for generations. Providing help to others is something that I find gratifying, and I have experienced this first hand during my A level years when I volunteered for over 300 hours with a local football team. Also, I like the integration of the portfolio management and investment strategy aspect that an internship on the solutions team would provide. In my spare time, I have built a discretionary investment portfolio, as well as spent time developing quantitative trading strategies, and these are things that I have thoroughly enjoyed.
Finding a role that allows me to employ both my analytical abilities and personable nature to have a real world impact on people and families is my ideal job, and this is exactly what I envisage working in private banking in the solutions team provides.
Why do you want to work for this division of Goldman Sachs? AM
In my spare time, I have previous experience with building a discretionary investment portfolio, as well as developing quantitative trading strategies, and these are things that I thoroughly enjoy. Therefore, pursuing a career where I can do this full time is natural. As a second point, I think the responsibility that comes from Asset Management is great - I like that you can decide your own investment decisions and the role is not purely advisory. I also think my skill set is well suited to the job; I am a very analytical and intellectually curious person, meaning that I want to always know more about the businesses and make an evaluation based on a logical approach. Finally, I think it is great that in Asset management you have the opportunities to interact with a lot of high ranking officials at different companies that you may invest in, as well as a lot of opportunities to develop your technical skills and quantitative abilities.
What skills do you think are required to do this job?
Based on my knowledge of the asset management industry, I would say the main skills required are strong analystical skills, the ability to summarise effectively and be an excellent communicator.
Strong analytical skills are important because you need to filter through a lot of information quickly and make links between pieces of information.
The ability to summarise well is important as you need to extract the important pieces of information from a lot of information
And excellent communication skills are important as you need to be able to convey your ideas succinctly and in a compelling way.
Can you talk about a mistake you made in the past, and how you overcame it?
I have previously invested in Electronic Arts interactive around October 2018 when I was just starting investing. I made this decision because I liked playing fifa games with friends and thought that it was a good investment based off of thr high revenues they generate from the ultimate team game mode. However, the share price dropped sharply because of a delay to another game in EA’s portfolio. From this experience I learnt that you cant really focus on one catalyst and ignore everything else; you must weigh up both sides and look at all products from a company.
Who is the most famous and influential person you would like to meet and why?
George Soros / Christopher Nolan.
Can you tell me a time when you failed to meet a deadline?
I missed a deadline for one of my formative assessments for my microeconomics modules in year 2 of my undergrad. This was one of the reasons I bought a productivity planner which sets out which tasks I need to complete over a day / week and this has helped tremendously.
What’s more important: deadlines, or the quality of work?
Depends on the scenario, I dont think it is one way or the other. Personally, I would fflag the issue to my boss and get his feedback on whether the deadline is soft or hard, and then communicate the level as to which I would be able to complete the task in the given timeframe. In an ideal situation, I think sticking to the deadline whilst still producing a good piece of work if best. I dont think you should ever submit or make a decision based on a bad quality piece of work as this can lead to bad outcomes.
Can you give an example of a time you streamlined a process?
Testing different portfolio weightings in Python. Was calculating things like Drawdown, Rate of Return etc, and kept copying code. Realised I could create my own module that did these things and then could just call the module when I needed to. Made the process a lot quicker because instead of finding the code, all I had to do was call a module.
What are you strengths?
- Main strength is intellectual curiosity - I always want to learn more. I read a lot of very different books; for example have read Stephen Hawkings ‘brief answers to the big questions’ as well as a lot of productivity books like ‘The compound effect’ or ‘Mindset’. I think this is why I am interested in finance, as you can always learn more in the field.
Another one of my main strength is industriousness - I finished top of my cohort at undergraduate level, despite also running a business, making a quantitative portfolio, balancing social life and even having a girlfriend.
I would also say I am analytical; I like gathering and finding out information, and feel like you should try and gather as much information as possible before making decisions. THis is why I like researching companies for discretionary investment ideas, as there are always ways to improve your valuation or assessment of a company.
What are your weaknesses?
I think my main weakness is that I occassionally lack focus. For example, I will be doing a task like focusing on Uni work, and then get side tracked reading something interesting on quora about space or something like that. However, I have attempted to mitigate this weakness by buying a productivity planner which sets out which tasks I need to complete over a day / week and this has helped tremendously.
Which role do you usually play in a team?
Id like to say leader, but I think it depends on the people in the group. if there is someone with more experience than me with the work we are currently doing, then I would think it would be best for the group for them to take lead rather than myself. Outside of leadership, I would say I always bring creativity and attempt to find innovative solutions, and I can also play a supporting role if someone else on the team needs some assitance.
What would your team mates say about working with you?
Strengths - Intellectually curious, for example ill always be reading about a lot of different topics like space, psychology etc and want to talk about everything to people
Another word would probably be hard-working. Many of my friends and even girlfriend complains I work too much but I really enjoy it. I think this probably has positives and negatives to it rather than being a strength or weakness.
Would you rather be captain of a losing team or the regular member of a winning team?
Id probably lean towards regular member of a winning team. I think if you surround yourself with people better than you, it can motivate you to improve yourself and hence I would want to be in an environment where I can learn from better team members.
Why did you choose your college/university? Why did you choose that subject?
I actually got an offer from University of Oxford to read Economics and Management, but missed my offer because I underperformed during A levels. However, I ended up at the University of York and couldnt be happier. In terms of why Economics and Finance, I really enjoy learning about peoples behaviour and why things work how they are, which meant Economics was a natural choice. FInance has always been the industry i have wanted to work in, and so that was also a natural choice.
Give an example of a time you acted as a leader.
When attending the HEC Paris Investment Banking and International Finance summer school, we were assigned groups and we had to make a case study on how we would value a company. I was assigned to be group leader, where I had to do the introduction and conclusion and make sure the presentation was cohesive and well structured. Our presentation went really well and the summer school leader noted that everything linked together nicely
Give an example of a time you worked with a diverse team.
When attending the HEC Paris Investment Banking and International Finance summer school, we were assigned groups and we had to make a case study on how we would value a company. There were 19 different nationalities represented on the summer school, and in my group of 6 people there were 5 different nationalities. However, we all worked well together, and everyone was patient on the communication side of things and double-checked everything to make sure there was not any miscommunication.
Would you say you’re a perfectionist?
Not really; I think its hard to ever do a perfect job. I will always strive to do my best, but I believe in the Pareto principle quite strongly. This is when 80% of the outcomes originate from 20% of the inputs, and so I think doing things to the best of your ability is important, but the marginal benefit of striving for perfection is outweighed by the time cost.
Your friend is cheating in a test. He’s on his last warning. You’re the only one who knows he’s cheating. What do you do?
- Obviously, an unfortunate situation to be in, never want to cause someone else distress
- However, I would feel like I have to report them to the professor as them cheating could affect the exam grade curve and hence could affect people who did the exam honestly
Tell me something not on your CV.
I am a qualified FA referee and referee under 18 matches. I was actually commended for my performance a few years ago and got to referee a u15 mens cup final which was pretty cool!
Tell me something not on your CV.
I am a qualified FA referee and referee under 18 matches. I was actually commended for my performance a few years ago and got to referee a u15 mens cup final which was pretty cool!
Tell me about yourself. You have three minutes.
- Undergrad at University of York in Economics and Finance. Graduated top of class and won head of department prize. Now studying Masters in Finance at University of Warwick
- During 1st year of undergrad got introduced to world of trading and investing through a friend
- During Covid pandemic in my 2nd year, had a lot of free time and nurtured my interest
- I actually managed a portfolio of quantitative strategies up to about 30k trading Dow Jones
- Encouraged me to do a masters in finance to really learn more about the finance world.
- Now want to work in Asset Management as I have a desire to learn how to invest and build portfolios from the best in the business.
- I am really interested in Football, support Man United and am a qualified FA referee.
Tell me about yourself. You have three minutes.
- Undergrad at University of York in Economics and Finance. Graduated top of class and won head of department prize. Now studying Masters in Finance at University of Warwick
- During 1st year of undergrad got introduced to world of trading and investing through a friend
- During Covid pandemic in my 2nd year, had a lot of free time and nurtured my interest
- I actually managed a portfolio of quantitative strategies up to about 30k trading Dow Jones
- Encouraged me to do a masters in finance to really learn more about the finance world.
- Now want to work in Asset Management as I have a desire to learn how to invest and build portfolios from the best in the business.
- I am really interested in Football, support Man United and am a qualified FA referee.
Walk me through the three different ways of valuing a company.
Precedent Transactions - Looking at the previous acquisition value and comparing the size / company to the one you are currently valuing
Comparable company analysis - comparing companies based on similar metrics to determine their enterprise value.
DCF - Using FCF and predicted growth rates to project cash flow into the future. You then discount these cash flows using the discount rate, usually expressed as WACC. You can then either do a perpetuity growth method and calculate a terminal value using a long term growth rate (usually around 2%), or calculate equity value using cash flows, cash and equivalents and debt and then multiplying this by a relevant ratio like price equity ratio to find a valuation of the intrinsic value.
Walk me through a DCF. What does a DCF do?
DCF - Using FCF and predicted growth rates to project cash flow into the future. You then discount these cash flows using the discount rate, usually expressed as WACC. You can then either do a perpetuity growth method and calculate a terminal value using a long term growth rate (usually around 2%), or calculate equity value using cash flows, cash and equivalents and debt and then multiplying this by a relevant ratio like price equity ratio to find a valuation of the intrinsic value.
You’re using multiples to value a company but those multiples are skewed. What do you do?
Im not really sure, but I would take an educated guess and say use a different valuation method, but that also may be wrong because of the skwewd multiples
Why is cash subtracted from Enterprise Value (EV)?
Enterprise value = Equity Value + debt - Cash. If you bought a company, you would take on the debt that the company has. You could use the current cash to pay off those debts, and hence they are subtracted.
Briefly walk me through a discounted cash flow analysis. (including WACC).
DCF - Using FCF and predicted growth rates to project cash flow into the future. You then discount these cash flows using the discount rate, usually expressed as WACC. You can then either do a perpetuity growth method and calculate a terminal value using a long term growth rate (usually around 2%), or calculate equity value using cash flows, cash and equivalents and debt and then multiplying this by a relevant ratio like price equity ratio to find a valuation of the intrinsic value.
Discuss a news story you have read about recently.
I was researching the other day about thematic investing, as I know that thematic investing is growing in popularity, for example I think there were nine new thematic ETFs hit the European market released in the second quarter of 2021, which means we have already matched the figure from 2020, and there is currently €32.4bn invested in thematic etf’s across Europe. What I found particularly interesting is a Financial Times article which talks about how active portfolio management is better than passive management in thematic investing. I believe the company quoted was Schroders, who explained that when you are investing thematically, you are investing around a theme, and this is usually in the context of emerging technologies. With passive management, a fund or etf is usually heavily weighted towards current and proven technologies, which means that if you are attempting to capitalise on the rise of new and emerging technologies, you are likely to mis out on a large price movement as these new technologies will be under weighted in the passive portfoli. With active management, you can change your porftolio composition and capitalise upon these new emerging technologies.
I know Goldman Sachs have recently released an actively managed ETF based on investing in climate friendly companies, so we could see further adoption of active management in thematic investing.
Discuss a news story you have read about recently.
I was researching the other day about thematic investing, as I know that thematic investing is growing in popularity, for example I think there were nine new thematic ETFs hit the European market released in the second quarter of 2021, which means we have already matched the figure from 2020, and there is currently €32.4bn invested in thematic etf’s across Europe. What I found particularly interesting is a Financial Times article which talks about how active portfolio management is better than passive management in thematic investing. I believe the company quoted was Schroders, who explained that when you are investing thematically, you are investing around a theme, and this is usually in the context of emerging technologies. With passive management, a fund or etf is usually heavily weighted towards current and proven technologies, which means that if you are attempting to capitalise on the rise of new and emerging technologies, you are likely to mis out on a large price movement as these new technologies will be under weighted in the passive portfoli. With active management, you can change your porftolio composition and capitalise upon these new emerging technologies.
I know Goldman have recently released an actively managed ETF based on investing in climate friendly companies, so we could see further adoption of active management in thematic investing.
Discuss a news story you have read about recently.
I was researching the other day about thematic investing, as I know that thematic investing is growing in popularity, for example I think there were nine new thematic ETFs hit the European market released in the second quarter of 2021, which means we have already matched the figure from 2020, and there is currently €32.4bn invested in thematic etf’s across Europe. What I found particularly interesting is a Financial Times article which talks about how active portfolio management is better than passive management in thematic investing. I believe the company quoted was Schroders, who explained that when you are investing thematically, you are investing around a theme, and this is usually in the context of emerging technologies. With passive management, a fund or etf is usually heavily weighted towards current and proven technologies, which means that if you are attempting to capitalise on the rise of new and emerging technologies, you are likely to mis out on a large price movement as these new technologies will be under weighted in the passive portfoli. With active management, you can change your porftolio composition and capitalise upon these new emerging technologies.
I know Goldman have recently released an actively managed ETF based on investing in climate friendly companies, so we could see further adoption of active management in thematic investing.
How do the three financial statements fit together?
Net Income from the Income Statement appears on the balance sheet in the retained earnings section (provided there is no dividend) and then is the starting point for cash from operations section on Cash Flow statement. The sum of the cash from operatiions, cash from investing and cash from financing are added to the prior closing cash balance, adn the result is the cash balance on the balance sheet.
How does depreciation move throughout the financial statements?
ddd
Why Finance instead of consulting?
I find the finance industry very rewarding; you can never learn too much, and it satisfies my intellectual curiosity as there is always opportunity to learn more. I also like that in investment management you have responsibility and can implement decisions yoursel, as well as being surrounded by a lot of like minded invidivudals.
Explain what a put option is.
a put option is a contract that gives the option buyer the right — but not the obligation — to sell a particular underlying security like a stock or ETF at a predetermined price, known as the strike price, within a specified window of time.
What’s moving the markets now?
Recent US Job news and inflation results have caused the FED to bring their timeline forward of rising interest rates. Rising interest rates is usually bad for equities and bonds. For equities, the higher interest rate increases the cost of borrowing, meaning less consumer and business spending which hurts earnings and this will translate to share price. Bonds decrease in price as the alternative is holding money in an interest account which is of course higher if interest rates increase. Other than that, the dramatic news about China heavily regulating the tech sector over there is sure to cause some impact, especially as it looks likely to continue.
What’s your top stock pick?
I will be pitching Take Two Interactive, a interactive entertainment company that specialises in publishing and developing games. It is headquartered in New York, listed on the Nasdaq stock exchange and a market cap of around 18bn dollars. I believe Take Two is a fantastic investment opportunity due to its fantastic range of IP’s, large recurrent consumer transactions as well as a strong position to capitalise on the rapidly developing mobile market. When GTA V was released, Take Two interactive made over $1bn in revenues in 24 hours - this is more than most current quaretely revenues. If GTA 6 can replicate this feat, there will be huge surge in revneues and hopefully profit, given that GTA v cost only 265 million dollars to make. Most of the current revenue is driven by recurrent transactions, take two interactive have not released a true blockbuster since 2018, and most of their current revenues are generated through recurring consumer transactions of both NBA 2k series and GTA 5’s online section. This is fantastic from a business perspective, as they are generating nearly all profit from these transactions, as it costs very little to maintain these games in comparison to the revenue generated from these sales. Next, Take two has recently acquired Playdots and Nordeous, adding to their current mobile dev team in SocialPoint, and TTWO are plainng to release 20 planned new mobile titles through 2023, aiming to capitalise on the growing market demand. All three of these mobile dev companies habe great track records, with Dragon City and Monster Legends both being in top 250 best selling app store games of all time. This is all without mentioning the fantastic balance sheet, including no debt, and an undervalued position as calculated by my DCF model that projects an intrinsic value of 240 dollars, compared to current stock price of around 160$, representing marging of safety of around 30%.
What’s your top stock pick?
I will be pitching Take Two Interactive, a interactive entertainment company that specialises in publishing and developing games. It is headquartered in New York, listed on the Nasdaq stock exchange and a market cap of around 18bn dollars. I believe Take Two is a fantastic investment opportunity due to its fantastic range of IP’s, large recurrent consumer transactions as well as a strong position to capitalise on the rapidly developing mobile market. When GTA V was released, Take Two interactive made over $1bn in revenues in 24 hours - this is more than most current quaretely revenues. If GTA 6 can replicate this feat, there will be huge surge in revneues and hopefully profit, given that GTA v cost only 265 million dollars to make. Most of the current revenue is driven by recurrent transactions, take two interactive have not released a true blockbuster since 2018, and most of their current revenues are generated through recurring consumer transactions of both NBA 2k series and GTA 5’s online section. This is fantastic from a business perspective, as they are generating nearly all profit from these transactions, as it costs very little to maintain these games in comparison to the revenue generated from these sales. Next, Take two has recently acquired Playdots and Nordeous, adding to their current mobile dev team in SocialPoint, and TTWO are plainng to release 20 planned new mobile titles through 2023, aiming to capitalise on the growing market demand. All three of these mobile dev companies habe great track records, with Dragon City and Monster Legends both being in top 250 best selling app store games of all time. This is all without mentioning the fantastic balance sheet, including no debt, and an undervalued position as calculated by my DCF model that projects an intrinsic value of 240 dollars, compared to current stock price of around 160$, representing marging of safety of around 30%.
What’s your top stock pick?
I will be pitching Take Two Interactive, a interactive entertainment company that specialises in publishing and developing games. It is headquartered in New York, listed on the Nasdaq stock exchange and a market cap of around 18bn dollars. I believe Take Two is a fantastic investment opportunity due to its fantastic range of IP’s, large recurrent consumer transactions as well as a strong position to capitalise on the rapidly developing mobile market. When GTA V was released, Take Two interactive made over $1bn in revenues in 24 hours - this is more than most current quaretely revenues. If GTA 6 can replicate this feat, there will be huge surge in revneues and hopefully profit, given that GTA v cost only 265 million dollars to make. Most of the current revenue is driven by recurrent transactions, take two interactive have not released a true blockbuster since 2018, and most of their current revenues are generated through recurring consumer transactions of both NBA 2k series and GTA 5’s online section. This is fantastic from a business perspective, as they are generating nearly all profit from these transactions, as it costs very little to maintain these games in comparison to the revenue generated from these sales. Next, Take two has recently acquired Playdots and Nordeous, adding to their current mobile dev team in SocialPoint, and TTWO are plainng to release 20 planned new mobile titles through 2023, aiming to capitalise on the growing market demand. All three of these mobile dev companies habe great track records, with Dragon City and Monster Legends both being in top 250 best selling app store games of all time. This is all without mentioning the fantastic balance sheet, including no debt, and an undervalued position as calculated by my DCF model that projects an intrinsic value of 240 dollars, compared to current stock price of around 160$, representing marging of safety of around 30%.
General Motors or Facebook? Why?
USually would be a growth vs value investment scenario, but GM stopped paying a dividend in 2020 due to high debt so it is a bit harder to tell. Think it depends on what you want; dividens are usually a stable and consistent income, whilst youre looking for more of the capital gain side with facebook
How would you invest $1k?
First thing is to say that I would be looking to use the money as a long term investment, so am willing to take above average risk to grow capital. Also, because the pot of money is small, I would only be able to invest in index funds or ETFs to achieve sufficient diversification. Investing a portion in a high growth index fund or ETF, maybe a tracker of the Nasdaq which does about 14% annually or another tech ETF could be a good idea. I would allocate about 70% of my portfolio here, and then invest another 10% in water equities, probably through something like the Lyxor World Water ETF as I have a positive outlook on the future of water companies given the potential water scarcity problems causing greater demand for innovation in this sector. The remaining 20% I would invest in a corporate bond index fund tracker, as I would like some diversification to my portfolio in case of a global equity crash, but corporate bonds are more atractive due to higher rate of return and I am happy to take on more risk given my investment horizon. With more money available, I would look to see diversification by investing in other countries stock markets, for example in the FTSE100 or DAX30, and then look to invest in some more exotic investments like gold or cryptocurrency.
If you had $1bn to invest in global equities, how would you position your portfolio?
If sticking to just equities, I would look to spread investments around various index funds to provide the diversification to my portfolio. The next thing to note would be that my investment horizon would be long term, and so I can take some added risk. I would probably allocate 40% to a Nasdaq index tracker, as the US economy has a strong performance and this should give me a relatively stable core position of my portfolio. I would then look to invest another 30% in 3 other index trackers, for example the FTSE100, DAX30 and a Bovespa index tracker which will give me a higher risk higher return access to an emerging market in Brazil. These investments should give me sufficient equity diversification, but introduce some exchange rate risk to the portfolio. Next I would gain some exposure to the Lyxor World Water ETF, say 10%, as I am bullish on this sector as we will require some innovation to solve the potential water scarcity crisis on the horizon and hence this sector should benefit. I would then invest the remaining 20% in a Growth ETF, perhaps the Vanguard growth ETF, as I know that has a high return of over 20% annually in last 5 years.
Talk to me about an asset class you’re interested in.
Equities, in particular the gaming sector. I really like the outlook of this sector, especially the growth of streaming and esports causing a surge in interest in games. Also, as the gen z and Millenials get older, they are likely to continue playing video games, as well as the new generations starting too. The current market is quite small in comparison to the future, especially as most of the current adults are not interested in video games as they did not grow up with them. I particularly like take two and electronic arts as investments.
What are today’s 10-year treasury bond returns?
Yield is 1.227%
Current S&p500 price?
I dont know exactly, but around 4,400$ last time I checked. (4,436)
Current Nasdaq price?
I dont know exactly, but around 14,800 last time i checked (14,835)
Current Ftse100 price?
I dont know exactly, but around 7,100 last time i checked (7,095)
Current Ftse250 price?
I dont know exactly, but around 23,400 last time i checked (23,420)
Current USOIL price?
I dont know exactly, but around 68.00 last time i checked (68.20)
Current gold price?
I dont know exactly, but XAUUSD is around 1,750 last time i checked (1744)
Current EURUSD price?
I dont know exactly, but around 1.17500 last time i checked (1.17600)
Current GBPUSD price?
I dont know exactly, but around 1.39 last time i checked (1.388)
Current EURGBP price?
I dont know exactly, but around 0.85 last time i checked (0.85)
Current USDJPY price?
I dont know exactly, but around 110.0 last time i checked (110.100)
Name a political event you’re tracking. How do you expect this to impact the markets?
Current US inflation levels of around 4% causing the FED potentially increasing interest rates sooner than forecast. Likely to lead to uncertainty and investors being unwilling to continue ploughing money into the stock market once this rates rise gerts closer, because higher rates increase the cost of borrowing, reducing consumer and institutional spending which decreases earnings and therefore share price of companiews.
What do you think of Bitcoin?
I think it is an interesting investment and the underlying technology behind it could have some profound uses. However, in my opinion, Bitcoin does not have an intrinsic value that reflects its current valuation, and hence I would not invest in it. I dont think it would be possible to use it as a transactional currency either, as one of they key reasons we have government controlled currencies is so they can stimulate the economy with monetary policy like QE if needed. I think its valaution maybe comes as a potential inflation hedge, and in that regard its pretty similar to gold, especially as there is a finite supply of it too.
Walk me through your resume
- Undergrad at University of York in Economics and Finance. Graduated top of class. Now studying Masters in Finance at University of Warwick
- During 1st year of undergrad got introduced to world of trading and investing through a friend
- During Covid pandemic managed a portfolio of quantitative strategies up to about 30k trading Dow Jones
- Now want to work in Asset Management as I have a desire to learn how to invest and build portfolios from the best in the business.
Need a strange hobby
Why do you want to work for Asset Management?
In my spare time, I have previous experience with building a discretionary investment portfolio, as well as developing quantitative trading strategies, and these are things that I thoroughly enjoy. Therefore, pursuing a career where I can do this full time is natural. As a second point, I think the responsibility that comes from Asset Management is great - I like that you can decide your own investment decisions and the role is not purely advisory. I also think my skill set is well suited to the job; I am a very analytical and intellectually curious person, meaning that I want to always know more about the businesses and make an evaluation based on a logical approach. Finally, I think it is great that in Asset management you have the opportunities to interact with a lot of high ranking officials at different companies that you may invest in, as well as a lot of opportunities to develop your technical skills and quantitative abilities.
What does AM division do?
Helps corporate clients with the long term investment of their assets. This could be investment advice to companies, pension funds or insurance companies.
Talk me through a time you were working in a team and you were faced with a confrontation
I was working with two others on YouTube channel. We were having a discussion about which content to make and there was some disagreement. However, I suggested we narrowed down to two options and then go away have a think and then vote on it; we ended up unanimously voting the right way and everyone agreed the right decision had been made. We ended up making both anyway!
What’s your greatest strength?
Main strength is intellectual curiosity - I always want to learn more. I read a lot of very different books; for example have read Stephen Hawkings ‘brief answers to the big questions’ as well as a lot of productivity books like ‘The compound effect’ or ‘Mindset’. I think this is my greatest strength because it means I always delve deeper and am not satisfied until I have found a good answer.
How would you integrate a new teammate?
I actually did this whilst at Marstons where I worked as bar staff. We had a new member join the team, and although I was not training this person, just being available for questions, being understanding of the situation of being new to the team and generally being supportive is usually the best way to integrate a new team member.
What’s a recent transaction that you’re interested in?
Etsy buying Depop for $1.62 billion. I was particularly interested in this transaction because I like Etsy’s long term prospects, as well as having used Depop a lot myself. Depop specialises in providing a marketplace for people to buy and sell used clothes, and its primary audience is the younger gen z generation as it is similar to a social media platform. This strongly complements Etsy’s initial offering, as it is an eCommerce marketplace for people crafters and artists to sell their handmade or bespoke goods. However, a previous negative was the lack of gen z exposure on Etsy, but this has now been reconciled with the purchase of depop.
What’s a time you saw something wrong in a team/project/activity you were doing? How did you react? What did you do?
ddd
“why are you interested in Equity Research”
ddd
“what is a company that you really admire? Why”
ddd
2) Describe which skills you have developed through your professional, educational, or personal experiences that will make you successful in a client service role
Through my entrepreneurial efforts, I have experience building a quantitative portfolio utilising technical analysis strategies, as well as managing a small five figure discretionary investment portfolio. During the former, I had the opportunity to develop my quantitative and teamwork skills, as well as hands on portfolio building experience, resulting in a portfolio historical performance of 22% CAGR for 12 years with 14% maximal drawdown. During the latter, I have sharpened my attention to detail and developed my analytical skills by selecting 15 stocks for the ‘Active Investing’ portion of my Core-Satellite portfolio. Also, I have co-launched a YouTube channel that aims to educate others on the use of technical analysis for investing and trading, so far producing 70+ videos and reaching 409 subscribers. I also have previous experience as bar staff at Marstons, and was recognised regionally for my high level of customer service and upselling techniques.
Think of something you know that is complicated and explain to me
Time value of money
if you have 100b how will you invest?
Right now, my time horizon is longer-term and hence I can look to take on more risk than if my time horizon was shorter term. Therefore, I would place a strong portion, say 70%, of my portfolio in various index funds to provide a large portion of my portfolio in relatively high-risk investments. Also, spreading around a few index funds will provide diversification without moving from the equities asset class. I would probably allocate 40% to a Nasdaq index tracker, as the US economy has a strong performance and this should give me a relatively stable core position of my portfolio. I would then look to invest another 20% in 3 other index trackers, for example the FTSE100, DAX30 and a Bovespa index tracker which will give me a higher risk higher return access to an emerging market in Brazil. These investments should give me sufficient equity diversification, but introduce some exchange rate risk to the portfolio. Next I would gain some exposure to the Lyxor World Water ETF, say 10%, as I am bullish on this sector as we will require some innovation to solve the potential water scarcity crisis on the horizon and hence this sector should benefit. I would then invest 20% in corporate bonds index trackers, providing a more stable investment and a higher risk but higher return investment than government bonds. The last 10% would be spread around other asset classes, perhaps in REIT’s, cryptocurrency and gold.
Why do you want to work for Goldman Sachs and what makes you suitable?
ddd
Walk me through your resume
- Undergrad at University of York in Economics and Finance. Graduated top of class. Now studying Masters in Finance at University of Warwick
- During 1st year of undergrad got introduced to world of trading and investing through a friend
- During Covid pandemic managed a portfolio of quantitative strategies up to about 30k trading Dow Jones
- Now want to work in Asset Management as I have a desire to learn how to invest and build portfolios from the best in the business.
Need a strange hobby
Are you a leader or a team member and why?
Id like to say leader, but I think it depends on the people in the group. if there is someone with more experience than me with the work we are currently doing, then I would think it would be best for the group for them to take lead rather than myself. Outside of leadership, I would say I always bring creativity and attempt to find innovative solutions, and I can also play a supporting role if someone else on the team needs some assitance.
Talk about how you would integrate a new teammate?
I actually did this whilst at Marstons where I worked as bar staff. We had a new member join the team, and although I was not training this person, just being available for questions, being understanding of the situation of being new to the team and generally being supportive is usually the best way to integrate a new team member.
What do you do outside of the office?
Keen football fan - support Manchester United and am an FA qualified referee. Outside of this I like to build quantitative trading systems and come up with investment ideas for my portfolio.
How would you describe your work ethic?
I would describe my work ethic as being industrious - I finished top of my cohort at undergraduate level, despite also running a business, making a quantitative portfolio, balancing social life and even having a girlfriend.
What are you passionate about?
I think there are a lot of factors but one of my main ones is probably that I push myself to be better every day and learn more and more. I always try to improve all areas of my life, by learning but then of course also havign social aspects as well. Ideally I can combine these and meet a lot of really interesting people, learn from them and enjoy the work I am doing. Other than this, in my spare time I am a keen football fan - support Manchester United and am an FA qualified referee. Outside of this I like to build quantitative trading systems and come up with investment ideas for my portfolio.
Can you give a time when you have had to overcome something difficult?
I actually got an offer from University of Oxford to read Economics and Management, but missed my offer because I underperformed during A levels. Obviously this was quite disheartening, but I ended up at the University of York and wanted to do my best here. I ended up finishing with the highest overall degree % of any Economics graduate for 2021, rewarding my resilient attitude.
what are the markets doing right now?
Recent US Job news and inflation results have caused the FED to bring their timeline forward of rising interest rates. Rising interest rates is usually bad for equities and bonds. For equities, the higher interest rate increases the cost of borrowing, meaning less consumer and business spending which hurts earnings and this will translate to share price. Bonds decrease in price as the alternative is holding money in an interest account which is of course higher if interest rates increase. Other than that, the dramatic news about China heavily regulating the tech sector over there is sure to cause some impact, especially as it looks likely to continue.
Tell me about a transaction that you’ve been following recently
Etsy buying Depop for $1.62 million. I was particularly interested in this transaction because I like Etsy’s long term prospects, as well as having used Depop a lot myself. Depop specialises in providing a marketplace for people to buy and sell used clothes, and its primary audience is the younger gen z generation as it is similar to a social media platform. This strongly complements Etsy’s initial offering, as it is an eCommerce marketplace for people crafters and artists to sell their handmade or bespoke goods. However, a previous negative was the lack of gen z exposure on Etsy, but this has now been reconciled with the purchase of depop.
You see a friend cheating in an exam what do you do?
- Obviously, an unfortunate situation to be in, never want to cause someone else distress
- However, I would feel like I have to report them to the professor as them cheating could affect the exam grade curve and hence could affect people who did the exam honestly
Why this role?
- Have previous experience with discretionary and quantitative investing and it is something I thoroughly enjoy. Therefore, pursuing a career in it is natural. . I also think the responsibility that comes from Asset Management is great - I like that you can decide your own investment decisions and the role is not purely advisory. I also think my skill set is well suited to the job; I am a very analytical and intellectually curious person, meaning that I want to always know more about the businesses and make an evaluation based on a logical approach. My reason for preferring Asset management over Wealth management is that I want to have the opportunity to interact with a lot of high ranking officials at different companies that I may invest in, and that I would prefer greater opportunity to develop technical skills rather than majority client interaction.
Which skills did you gain during your internship or past investment banking experience that will make you a good fit for this role?
Through my entrepreneurial efforts, I have experience building a quantitative portfolio utilising technical analysis strategies, as well as managing a small five figure discretionary investment portfolio. During the former, I had the opportunity to develop my quantitative and teamwork skills, as well as hands on portfolio building experience, resulting in a portfolio historical performance of 22% CAGR for 12 years with 14% maximal drawdown. During the latter, I have sharpened my attention to detail and developed my analytical skills by selecting 15 stocks for the ‘Active Investing’ portion of my Core-Satellite portfolio. Also, I have co-launched a YouTube channel that aims to educate others on the use of technical analysis for investing and trading, so far producing 70+ videos and reaching 409 subscribers. I think one of the main benefits of my entrepreneurial ventures has been developing problem solving and independence; you have to find your own way to do things, and keep yourself motivated.
How are the three financial statements linked? (Asked in IBD interviews)
Net Income from the Income Statement appears on the balance sheet in the retained earnings section (provided there is no dividend) and then is the starting point for cash from operations section on Cash Flow statement. The sum of the cash from operatiions, cash from investing and cash from financing are added to the prior closing cash balance, adn the result is the cash balance on the balance sheet.
What are the benefits of raising equity and what are the benefits of raising debt? (Asked in IBD interviews)
Equity - Less risky, dont expose to debt
Debt - Maintain ownership, don’t dilute share holders
- Tax shield
What are the greatest challenges the financial sector will face in the next 5 years?
ddd
What would you do if you were unable to meet a deadline?
Depends on the scenario, I dont think it is one way or the other. Personally, I would fflag the issue to my boss and get his feedback on whether the deadline is soft or hard, and then communicate the level as to which I would be able to complete the task in the given timeframe. In an ideal situation, I think sticking to the deadline whilst still producing a good piece of work if best. I dont think you should ever submit or make a decision based on a bad quality piece of work as this can lead to bad outcomes.
Which is better: meeting a deadline or doing a perfect job?
Depends on the scenario, I dont think it is one way or the other. Personally, I would fflag the issue to my boss and get his feedback on whether the deadline is soft or hard, and then communicate the level as to which I would be able to complete the task in the given timeframe. In an ideal situation, I think sticking to the deadline whilst still producing a good piece of work if best. I dont think you should ever submit or make a decision based on a bad quality piece of work as this can lead to bad outcomes.
JPMorgan has a diverse group of people, explain a time how you worked with a diverse group of people and explain your experience
When attending the HEC Paris Investment Banking and International Finance summer school, we were assigned groups and we had to make a case study on how we would value a company. There were 19 different nationalities represented on the summer school, and in my group of 6 people there were 5 different nationalities. However, we all worked well together, and everyone was patient on the communication side of things and double-checked everything to make sure there was not any miscommunication.
What interests you about current affairs now? Why?
ddd
Talk about a recent market news headline in detail
I was researching the other day about thematic investing, as I know that thematic investing is growing in popularity, for example I think there were nine new thematic ETFs hit the European market released in the second quarter of 2021, which means we have already matched the figure from 2020, and there is currently €32.4bn invested in thematic etf’s across Europe. What I found particularly interesting is a Financial Times article which talks about how active portfolio management is better than passive management in thematic investing. I believe the company quoted was Schroders, who explained that when you are investing thematically, you are investing around a theme, and this is usually in the context of emerging technologies. With passive management, a fund or etf is usually heavily weighted towards current and proven technologies, which means that if you are attempting to capitalise on the rise of new and emerging technologies, you are likely to mis out on a large price movement as these new technologies will be under weighted in the passive portfoli. With active management, you can change your porftolio composition and capitalise upon these new emerging technologies.
I know Goldman Sachs have recently released an actively managed ETF based on investing in climate friendly companies, so we could see further adoption of active management in thematic investing.
What Skills are required for the job?
Based on my knowledge of the asset management industry, I would say the main skills required are strong analystical skills, the ability to summarise effectively and be an excellent communicator.
Strong analytical skills are important because you need to filter through a lot of information quickly and make links between pieces of information.
The ability to summarise well is important as you need to extract the important pieces of information from a lot of information
And excellent communication skills are important as you need to be able to convey your ideas succinctly and in a compelling way.
What are your strengths?
- Main strength is intellectual curiosity - I always want to learn more. I read a lot of very different books; for example have read Stephen Hawkings ‘brief answers to the big questions’ as well as a lot of productivity books like ‘The compound effect’ or ‘Mindset’. I think this is why I am interested in finance, as you can always learn more in the field.
Another one of my main strength is industriousness - I finished top of my cohort at undergraduate level, despite also running a business, making a quantitative portfolio, balacing social life and even having a girlfriend.
I would also say I am analytical; I like gathering and finding out information, and feel like you should try and gather as much information as possible before making decisions. I think this is why I really enjoy building portfolios, as I need to take a logical thought process to evaluating investment decisions
What are your weaknesses?
I think my main weakness is that I occassionally lack focus. For example, I will be doing a task like focusing on Uni work, and then get side tracked reading something interesting on quora about space or something like that. However, I have attempted to mitigate this weakness by buying a productivity planner which sets out which tasks I need to complete over a day / week and this has helped tremendously.
How would your friends describe you?
Strengths - Intellectually curious, for example ill always be reading about a lot of different topics like space, psychology etc and want to talk about everything to people
Another word would probably be hard-working. Many of my friends and even girlfriend complains I work too much but I really enjoy it. I think this probably has positives and negatives to it rather than being a strength or weakness.
Where do you see yourself in the future?
Hard to really say because depends on so many things. I may be completely wrong with this but based on my current interests I would hopefully be a portfolio manager or even co- portfolio as I like the idea of running a portfolio alongside someone so we can bounce ideas off of each other. I would also like to do an MBA at some point as I really enjoy learning. Obviously this is very speculative as its probably too early in my career to tell properly, but this would be an ideal scenario.
Why did you choose your degree?
I actually got an offer from University of Oxford to read Economics and Management, but missed my offer because I underperformed during A levels. However, I ended up at the University of York and couldnt be happier. In terms of why Economics and Finance, I really enjoy learning about peoples behaviour and why things work how they are, which meant Economics was a natural choice. FInance has always been the industry i have wanted to work in, and so that was also a natural choice.
What is your motivation?
I think there are a lot of factors but one of my main ones is probably that I push myself to be better every day and learn more and more. I always try to improve all areas of my life, by learning but then of course also havign social aspects as well. Ideally I can combine these and meet a lot of really interesting people, learn from them and enjoy the work I am doing
What is your proudest accomplishment?
Probably that I finished top of my undergraduate cohort for the whole economics department, which is about 200 people, as I got the highest overall degree %. Outside of this I would think that learning to build and eventually building an algo portfolio that trades off of technical analysis is pretty cool.
Do you prefer to work alone or in a team?
I don’t really prefer either, I think each option is better in certain scenarios. For example, when trying to come up with ideas I think working independently is probably the best way, as then people feel less under pressure and it leads to more ideas being discovered. However, if we were then to select a best idea from these options, coming together as a team and discussing is likely to lead to a much better outcome than if just working by yourself.
Tell me about a time you had to make a difficult decision?
ddd
Tell me about a Team Conflict?
I was working with two others on YouTube channel. We were having a discussion about which content to make and there was some disagreement. However, I suggested we narrowed down to two options and then go away have a think and then vote on it; we ended up unanimously voting the right way and everyone agreed the right decision had been made. We ended up making both anyway!
Tell me about a time when you were a leader?
When attending the HEC Paris Investment Banking and International Finance summer school, we were assigned groups and we had to make a case study on how we would value a company. I was assigned to be group leader, where I had to do the introduction and conclusion and make sure the presentation was cohesive and well structured. Our presentation went really well and the summer school leader noted that everything linked together nicely
Tell me a time you made a bad decision?
I have previously invested in Electronic Arts interactive around October 2018 when I was just starting investing. I made this decision because I liked playing fifa games with friends and thought that it was a good investment based off of thr high revenues they generate from the ultimate team game mode. However, the share price dropped sharply because of a delay to another game in EA’s portfolio. From this experience I learnt that you cant really focus on one catalyst and ignore everything else; you must weigh up both sides and look at all products from a company.
Tell me about a time when you worked hard to meet a deadline?
When I was at the HEC Paris Summer school this summer, we had to make a group presentation and had 3 days to complete it. However, we also had to still attend lectures as normal, and hence had to complete the task outside of regular hours. I organised a group zoom call for each evening and we all worked together, which helped keep everyones motivation high. We ended up submitting the presentation with a few hours to spare, and we were commended on how cohesive and polished our presentation was.
Any Questions for me?
ddd
Tell me about a recent news story you have read?
I was researching the other day about thematic investing, as I know that thematic investing is growing in popularity, for example I think there were nine new thematic ETFs hit the European market released in the second quarter of 2021, which means we have already matched the figure from 2020, and there is currently €32.4bn invested in thematic etf’s across Europe. What I found particularly interesting is a Financial Times article which talks about how active portfolio management is better than passive management in thematic investing. I believe the company quoted was Schroders, who explained that when you are investing thematically, you are investing around a theme, and this is usually in the context of emerging technologies. With passive management, a fund or etf is usually heavily weighted towards current and proven technologies, which means that if you are attempting to capitalise on the rise of new and emerging technologies, you are likely to mis out on a large price movement as these new technologies will be under weighted in the passive portfoli. With active management, you can change your porftolio composition and capitalise upon these new emerging technologies.
I know Goldman have recently released an actively managed ETF based on investing in climate friendly companies, so we could see further adoption of active management in thematic investing.
Where do you think the Stock market will go?
Of course this is just conjecture but if I had to make a prediction id think this. Inflation is high right now, around 4% in US and 2.5% in UK. The US inflation rate is off of target (around 2%) and the Fed have recently brought forward the guidance on when they expect to increase interest rates, so I think investors will now be cautious about investing in the stock market as when interest rates rise, businesses and consumers will cut back on spending because the cost of debt is higher, meaning earnings will fall and stock prices will drop.
Where do you think the Stock market will go?
Of course this is just conjecture but if I had to make a prediction id think this. Inflation is high right now, around 4% in US and 2.5% in UK. The US inflation rate is off of target (around 2%) and the Fed have recently brought forward the guidance on when they expect to increase interest rates, so I think investors will now be cautious about investing in the stock market as when interest rates rise, businesses and consumers will cut back on spending because the cost of debt is higher, meaning earnings will fall and stock prices will drop.
Where do you think the Stock market will go?
Of course this is just conjecture but if I had to make a prediction id think this. Inflation is high right now, around 4% in US and 2.5% in UK. The US inflation rate is off of target (around 2%) and the Fed have recently brought forward the guidance on when they expect to increase interest rates, so I think investors will now be cautious about investing in the stock market as when interest rates rise, businesses and consumers will cut back on spending because the cost of debt is higher, meaning earnings will fall and stock prices will drop.
Why this role? PWM
My interest in the Private Banking industry stems from a work experience placement in the wealth management industry in my earlier years. I found the placement very rewarding, as you can clearly see the impact that private wealth management has on individuals and families, and this impact can last for generations. Providing help to others is something that I find gratifying, and I have experienced this first hand during my A level years when I volunteered for over 300 hours with a local football team. Also, I like the integration of the portfolio management and investment strategy aspect that an internship on the solutions team would provide. In my spare time, I have built a discretionary investment portfolio, as well as spent time developing quantitative trading strategies, and these are things that I have thoroughly enjoyed.
Finding a role that allows me to employ both my analytical abilities and personable nature to have a real world impact on people and families is my ideal job, and this is exactly what I envisage working in private banking in the solutions team provides.
Which skills did you gain during your internship or past investment banking experience that will make you a good fit for this role?
Main strength is intellectual curiosity - I always want to learn more. I read a lot of very different books; for example have read Stephen Hawkings ‘brief answers to the big questions’ as well as a lot of productivity books like ‘The compound effect’ or ‘Mindset’. I think this is why I am interested in finance, as you can always learn more in the field.
Another one of my main strength is industriousness - I finished top of my cohort at undergraduate level, despite also running a business, making a quantitative portfolio, balancing social life and even having a girlfriend.
I would also say I am analytical; I like gathering and finding out information, and feel like you should try and gather as much information as possible before making decisions. THis is why I like researching companies for discretionary investment ideas, as there are always ways to improve your valuation or assessment of a company.
What are the benefits of raising equity and what are the benefits of raising debt?
- Raising equity is less risky as you don’t take any debt out that needs to be repaid
- Raising debt dilutes ownership structure, so current owners will own a smaller proportion of business
What are the greatest challenges the financial sector will face in the next 5 years?
dd
Provide an example of a time when you assessed a problem and understood its root causes. How did you analyse the information?
dd
What would you do if you were unable to meet a deadline?
dd
Which is better: meeting a deadline or doing a perfect job?
Depends on the scenario, I dont think it is one way or the other. Personally, I would fflag the issue to my boss and get his feedback on whether the deadline is soft or hard, and then communicate the level as to which I would be able to complete the task in the given timeframe. In an ideal situation, I think sticking to the deadline whilst still producing a good piece of work if best. I dont think you should ever submit or make a decision based on a bad quality piece of work as this can lead to bad outcomes.
What skill sets do you think will help you exceed at this job?
I think my strengths of being intellectually curious, industrious and analytical will very much help me during this role. This is because I enjoy learning and delving deeper to fully understand the problem or information because of my intellectual curiosity, as well as taking a logical and well thought out approach because of my analytical nature.
- Explain a time how you worked with a diverse group of people and explain your experience.
When attending the HEC Paris Investment Banking and International Finance summer school, we were assigned groups and we had to make a case study on how we would value a company. There were 19 different nationalities represented on the summer school, and in my group of 6 people there were 5 different nationalities. However, we all worked well together, and everyone was patient on the communication side of things and double-checked everything to make sure there was not any miscommunication.
Explain a time you had a difficult situation and what you did to overcome it?
I actually got an offer from University of Oxford to read Economics and Management, but missed my offer because I underperformed during A levels. Obviously this was quite disheartening, but I ended up at the University of York and wanted to do my best here. I ended up finishing with the highest overall degree % of any Economics graduate for 2021, rewarding my resilient attitude.
What’s a time you saw something wrong in a team/project/activity you were doing?
dd
What interests you about current affairs now? Why?
Inflation and that it is apparently transitory; inflation is usually influenced by inflation expectations, so as to whether the transitory statement is true is up in the air.
Describe a time when you have been able to demonstrate flexibility?
ddd
Can you talk about your experience of changing your approach quickly to achieve a goal?
dd
Where is the economy going in the next 6 months?
Hard to say; depends greatly on where interest rates go in the near future and that is determined by inflation rates.
Name a time you convinced someone to do something.
When I was working on the bar at Marstons pub, we were really focussing on improving our upsells as a pub. Upselling is selling extra things such as sides when people order main meals, and so I often had to encourage people to buy these extra items. The way I approached the situation was first bringing the idea up to them, by asking whether they’d thought about having a side of chips with their lasagne or an extra patty on their burger. I could then usually tell by their initial reaction as to whether they were going to do this sort not, but some people were undecided. If someone was undecided, explaining the positives such as being cost effective whilst remaining honest usually sold the upsell to people. However, you always had to confirm that there was a charge, just so the customer doesn’t feel hard done by. My upselling technique was usually well received, and IO was recognised by my regional manager for the highest upsells in the region.
Talk about a recent market news headline in detail
dd
How do you keep up with current industry?
Finimize, Bloomberg podcatss when I am exercising. Reading books then researching topics usually helps too, as well as actively participating in the industry.
Tell me about a time when you had to explain complicated things to someone with little knowledge
dd
Tell me about a time when you worked towards an important deadline
Exams. Plan timeframe. Work out deadline. Worked through the night. Didnt finish any exam before 2am, and actually stayed up all night on my last exam to get it done.
Tell me about a time when you worked with little guidance
Do this quite often with enreprenuerial activities. Usually you are very independent, and hence have to work out a lot of things by yourself.
- Tell me about two companies that in your opinion should merge
dd
Tell me your thoughts on the economy”
dd
(strengths/weaknesses
- Main strength is intellectual curiosity - I always want to learn more. I read a lot of very different books; for example have read Stephen Hawkings ‘brief answers to the big questions’ as well as a lot of productivity books like ‘The compound effect’ or ‘Mindset’. I think this is why I am interested in finance, as you can always learn more in the field.
Another one of my main strength is industriousness - I finished top of my cohort at undergraduate level, despite also running a business, making a quantitative portfolio, balancing social life and even having a girlfriend.
I would also say I am analytical; I like gathering and finding out information, and feel like you should try and gather as much information as possible before making decisions. THis is why I like researching companies for discretionary investment ideas, as there are always ways to improve your valuation or assessment of a company.
where do I see myself in 5 years
Hard to really say because depends on so many things. I may be completely wrong with this but based on my current interests I would hopefully be a portfolio manager or even co- portfolio as I like the idea of running a portfolio alongside someone so we can bounce ideas off of each other. I would also like to do an MBA at some point as I really enjoy learning. Obviously this is very speculative as its probably too early in my career to tell properly, but this would be an ideal scenario.
why this position AM
In my spare time, I have previous experience with building a discretionary investment portfolio, as well as developing quantitative trading strategies, and these are things that I thoroughly enjoy. Therefore, pursuing a career where I can do this full time is natural. As a second point, I think the responsibility that comes from Asset Management is great - I like that you can decide your own investment decisions and the role is not purely advisory. I also think my skill set is well suited to the job; I am a very analytical and intellectually curious person, meaning that I want to always know more about the businesses and make an evaluation based on a logical approach. Finally, I think it is great that in Asset management you have the opportunities to interact with a lot of high ranking officials at different companies that you may invest in, as well as a lot of opportunities to develop your technical skills and quantitative abilities.
- What would you tell us if we ask you to talk about the world in 40 years?
ddd
- Which attributes do you think are important in this role?
Based on my knowledge of the asset management industry, I would say the main skills required are strong analystical skills, the ability to summarise effectively and be an excellent communicator.
Strong analytical skills are important because you need to filter through a lot of information quickly and make links between pieces of information.
The ability to summarise well is important as you need to extract the important pieces of information from a lot of information
And excellent communication skills are important as you need to be able to convey your ideas succinctly and in a compelling way.
- Tell us how do you deal with a difficult argument with a coworker
I was working with two others on YouTube channel. We were having a discussion about which content to make and there was some disagreement. However, I suggested we narrowed down to two options and then go away have a think and then vote on it; we ended up unanimously voting the right way and everyone agreed the right decision had been made. We ended up making both anyway!
- How do you keep up with the industry and tell us about a particular topic you are following in these days
dd
Discuss an industry and company you follow and why?
dd
“Why are you interested in finance?”
I find the finance industry very rewarding; you can never learn too much, and it satisfies my intellectual curiosity as there is always opportunity to learn more. I also like that in investment management you have responsibility and can implement decisions yoursel, as well as being surrounded by a lot of like minded invidivudals.
