Elevate Newsletter #11: IBD Fireside Chat | Hedge Fund Investor Video | Q&A - COVID | News | More

• The Investment Banking Analyst Experience 
• Career Path 
• Recruiting Strategies
• Jobs & Internships in Current Environment / COVID
• Market Outlook
• Advice for Students & Young Professionals

#2 of 7: Elevate Academy Career Talks - Hedge Fund Investing ($15bn AUM fund), straight out of I-Banking

The latest Elevate Academy discussion is with Nikhil, hedge fund investor at Cantillon Capital ($15bn AUM, one of 9 investment professionals). He joined the hedge fund industry right after banking, which is very challenging to do. We cover so many topics related to Hedge funds, how to find great investment ideas, pros and cons HF vs. Private Equity, How comp & carry work in HFs, skills needed to be successful on the job, the HF interview process, and much more

Youtube: https://youtu.be/WQgEb4zCWuU (Subscribe to the YouTube channel!)
iTunes: Elevate Talks on Apple Podcasts

Topics discussed:
3:20: Why Hedge Fund right out of Investment Banking vs. Private Equity?
7:40: How do you find great investment ideas?
12:25: Psychology aspects of public markets
13:05: Pros and Cons of Hedge Funds vs. Private Equity?
15:05: Differences between HF and PE
17:45: Technical skills on the job & valuation as a function of opportunity cost
21:50: Coding and quant skills for the job?
24:55: Soft skills: Convincing people of your ideas & communicating risk
28:10: What is comp structure in HF world? At what point do you get carry?
30:05: Why have some HF funds have struggled recently? “It’s a tough job”
32:35: Rise of passive vs. active investing
34:35: What is the Hedge Fund interview process like?
37:05: Rapid fire round: Market at end of 2020; favorite investing book; what he reads daily; best advice

#3 of 7: Your Questions Answered - COVID Edition

1. Mindset for the current state of anxiety and uncertainty?

In times like this, when there is so much going on that is out of our control, it is important to focus on what we can control, which is continuing to learn, build skillsets, (virtually) connect with people, and build solid experiences. That way, when this situation is finally under control, which it will be, you will have built up the skills, knowledge and experience to push forward and accelerate

2. Your thoughts on what happens with summer internships? 

Most firms are still in wait and see mode. Goal is to keep it as normal an internship experience as possible. However, the longer the crisis continues and the harder it becomes to maintain status-quo, the more likely remote internships or other options (shortened, project-based, outright cancellations, direct FT offers) are in play. A lot depends a lot on how April goes. Right now, I'd put remote internships (or other options) at a ~50% probability, but things can change dramatically in a short period. Firms will do their best to have it in-person, but firms also like to plan ahead and don't like uncertainty or risk as it relates to their people, so are less likely to take chances. 

3. What happens with full-time jobs? 

On the full-time side, there's more time to go. Assuming we go back to some normalcy by summer, I'd expect activity the rest of the year to pick up. More strategic activity, capital raising, restructurings, opportunities to buy companies given valuation levels, and private equity activity given dry powder. So, I expect analysts & associates to be busy. The uncertain part is a potential recession / longer-lasting economic slowdown.

4. What happens if internships go remote?

There's no denying it is going to make the job more difficult for many reasons: building personal relationships with your team, getting high-impact learning from others, getting meaningful responsibilities, and feeling integrated on teams. But, again, control what you can control. Use this as an opportunity to show that you work hard and produce high-quality work. You can do that by double / triple checking your work, paying close attention to details, and being thoughtful about how you solve problems. Time management becomes critical, and communication / checking in with your team will be very important. 

5. I'm worried about the cancelled networking sessions and coffee chats - what's your advice?

Yes, firms and professionals aren't on campus so that makes networking difficult. But, I'll take the glass half full approach here - now's a great time to network virtually. Professionals are largely working from home, and not traveling. Great opportunity to reach out to people and have their captive attention. Take advantage of LinkedIn (outreach to people) and your alumni networks.

6. What are the keys to success first 3-6 months as a full-time analyst:

- Adopt a learning mindset
- Have a positive attitude
- Stay organized
- Pay close attention to the details
- Take ownership of deliverables

7. Advice from your experience from the last crisis?

There's no denying that entering a job market during a crisis is challenging. Again, we have to control what we can and continue to build our own skills and experience to make ourselves the best individual and professional. I entered Wall Street soon after the last financial crisis. As I look back, the silver lining was that during my first few years, I got to work on some of the most complex and challenging transactions ever in the industry, learned a ton. And, soon thereafter, the economy recovered. So what I learned from that was that no economic cycle lasts forever, our careers are long and the experience we build is the most important.

More questions? Email ProjectElevateLab@gmail.com

#5 of 7: Elevate Academy - Free Talks & Access to Successful Professionals in Top Jobs

Elevate Academy talks are on YouTube, iTunes and Elevate Website:
https://www.elevatelab.org/elevate-academy

• Warburg Pincus: Private Equity Investing with Sahil (BCG to Warburg)
• Uber with Nandini (JPM Banking to Director @ Uber)
• Softbank Venture Capital with Olivier 
• McKinsey Management Consulting with Niranjana (featured by McKinsey's global page)

Don't forget to subscribe, rate and review on Youtube & iTunes (it's quick!)
Subscribe: https://www.youtube.com/channel/UCWWkAMa2_F8GpE5bO8kApug/

Upcoming Sessions:

• Private Equity, Centerbridge & GTCR
• Hedge Fund Investor, Citadel
• Venture Capital, Early Stage Technology Investor (featured on Wall Street Journal's 20 VCs to Watch)

#7 of 7: Elevate Recruit & Engage with Elevate

We are working with a few Investment Firms to recruit candidates from Elevate for internship opportunities in investing & operations at their portfolio companies. More information to come. 

Thank you for your continued engagement. Help us spread the word by sharing this newsletter, subscribing to the YouTube channel, forwarding Elevate Mastery Training, etc.

Stay safe & healthy and keep striving for your best,
Kaushik
Founder, Elevate
ProjectElevateLab@gmail.com