Investment Management and Equity Research Interview Questions: Tips and Strategies for Success

If you’re preparing for an Investment Management or Equity Research interview, you may be wondering what types of questions to expect. These interviews can be daunting, but with the right preparation, you can ace them. In this guide, we provide 73 interview questions that will help you prepare for your next interview.

Table of Contents

Getting to Know You: Common Investment Management Interview Questions

The first thing to keep in mind is that most Investment Management interviews will involve a “get to know you” portion. This is where the interviewer will ask questions about your background, interests, and why you want to work in Investment Management. Here are some typical examples of these questions:

Tell me about yourself.
Why do you want to work in Investment Management?
What qualities make for a good analyst?
What skills can you offer as an analyst? Are there any industry-specific ones?
Which industry do you want to cover? Do you have a preference for value or growth?
How would you analyze the industry?
Pitch a stock to me.

Pitch Me a Stock: Technical Investment Management Interview Questions

The “Pitch Me a Stock” portion of the interview is where things get more technical. Before walking into an Investment Management interview, it’s important to choose at least two stocks to buy and two stocks to short and know these companies inside out. Here are some tips to help you prepare for this portion of the interview:

Know major ratios: This includes P/E ratio, P/B ratio, EV/EBITDA ratio, etc.
Know comparable companies: Identify other companies in the same industry and compare their financials.
Analyze the competitive landscape of the industry: Use Porter’s Five Forces framework to analyze competition within the industry.
Build your own model: Create an income statement, balance sheet & cash flow statement for each company.
Know the opinion of the stock on Wall Street: Understand how analysts view these stocks and how your opinion either agrees or dissents with consensus.
Understand macroeconomic factors: Identify how macroeconomic factors such as interest rates or inflation could impact these stocks and their industries.
Stay up-to-date with major news events: Keep an eye on major news events in the sector and how they could impact these stocks.

Behavioral Interview Questions: Investment Management and Equity Research

In addition to technical questions, Investment Management interviews may also include behavioral questions. These are designed to assess your personality, work ethic, and ability to work in a team. Here are some examples of behavioral questions you may be asked:

Tell me about a time when you had to work with a difficult team member.
Describe a situation where you had to make a tough decision.
How do you handle stress?
What motivates you?

Remember, there is no right or wrong answer to questions in an Investment Management interview. The interviewer is looking for your ability to think critically, analyze data, and communicate your ideas effectively. They also want to see that you have a genuine interest in the markets and the economy.

Staying Up-to-Date with Financial News

To demonstrate your interest in the markets, it’s important to keep up-to-date with financial news. Reading publications such as The Wall Street Journal or Bloomberg can help you stay informed about market trends and economic indicators.

Preparing for Your Interview

In conclusion, preparing for an Investment Management or Equity Research interview requires a combination of technical knowledge and behavioral skills. By knowing major ratios, comparable companies, and analyzing the competitive landscape of the industry, you can demonstrate your ability to think critically about stocks. Additionally, by answering behavioral questions effectively and demonstrating a genuine interest in the markets, you can show that you are a well-rounded candidate who can work well in a team and handle stress. Here are some additional tips to help you prepare for your interview:

Practice, practice, practice: Practice your pitches for stocks and be prepared to defend your choices. Practice answering behavioral questions and be ready to give examples from your past experiences.

Research the company

Familiarize yourself with the company you are interviewing for, their investment philosophy, and their portfolio. This will help you tailor your answers and demonstrate your interest in the company.

Dress appropriately

Dress professionally for your interview to make a good first impression. Make sure your attire is appropriate for the company culture and the type of role you are interviewing for.

Arrive early

Plan to arrive at least 10-15 minutes early to allow time for unexpected delays. This will also give you some time to relax and gather your thoughts before the interview.

Follow up

After the interview, send a thank-you email or note to the interviewer to express your appreciation for their time and reiterate your interest in the role.

By following these tips and preparing thoroughly for your Investment Management or Equity Research interview, you can increase your chances of success and impress your interviewer. Good luck!

Conclusion

In conclusion, Investment Management and Equity Research interviews can be challenging, but with the right preparation and mindset, you can succeed. The key to acing these interviews is to have a solid understanding of financial ratios, comparable companies, and industry analysis, as well as keeping up-to-date with financial news. Additionally, it’s crucial to demonstrate your ability to think critically, analyze data, and communicate your ideas effectively while answering behavioural questions. Remember that there is no right or wrong answer to these questions, and the interviewer is looking for your passion for the markets and the economy. By combining technical knowledge with behavioural skills, you can set yourself apart from the competition and land the job of your dreams.