For the world’s largest asset owners
Millennials: Tips on How to Nail
that Asset Management Job Interview
“What another would have done as well as you, do not do it. What another would have said as well as you, do not say
it; what another would have written as well, do not write it. Be faithful to that which exists nowhere but in yourself—
and thus make yourself indispensable.” —André Gide, Les Nourritures Terrestres
(July 19, 2015)—My recent essay about millennials working in the asset
management business caused quite a few millennials to contact me for
career advice. Most are considering whether they want to shift their career
focus from technology to asset management. I offered no advice on this
decision other than that the interview process is itself a method of selfdiscovery and, if approached correctly, would reveal the proper path for
them to take.
My advice: Begin by recognizing that this interview will be fundamentally
different than your interview with Google, Twitter, or Tinder.
In practical terms, this means ditching the jeans and t-shirt and digging
out that suit or dress that’s been hanging in your parents’ closet since high
school graduation. If this requirement alone does not extinguish your
interest in the position, read on.
In terms of format, expect to be asked a series of probing questions
intended to reveal your qualifications and creativity. But don’t assume
you’ll be asked the unconventional questions you were asked when you
interviewed at that tech firm (thanks to Business Insider for this list): How
many piano tuners are there in the entire world? How much should you
charge to wash all the windows in Seattle?
Instead, expect a much less adventurous and, therefore, quite predicable
set of questions. The key to nailing the interview is providing the right
answers that are as conventional and predictable as the questions.
Here are some of the likely questions and both the ‘right’ and ‘wrong’
answers.
“If you had the opportunity, what historical figure would you
invite to dinner?”
Right answers: Warren Buffett, George Soros, Jack Bogle (but not if
you’re interviewing at an active shop), David Swensen, or Ray Dalio. Bill
Gross is only an option if you are into philately. For the record, Gordon
Gekko is not a historical figure.
If you don’t know any great investors, don’t fret. Choose a safe and
pedestrian academic like Harry Markowitz or Bill Sharpe. Be sure to only
pick white male academics from the pantheon of finance; it’s unlikely the
interviewer will know who Ada Lovelace is.
Wrong answers: Leonardo da Vinci, Elon Musk, or Marc Andreessen.
“Why do you want this job?
Right answer: One or more of these apocryphal tropes: The firm (a)
has a culture of genuine innovation; (b) puts investment excellence before
asset raising; (c) has a breadth of products that would allow me to be truly
consultative with clients; and (d) emphasizes teamwork rather than a star
system.
Wrong answer: This experience will provide me with insights into how
to disrupt the asset management business in the same way Uber disrupted
the taxi business.
“Where do you see yourself in five years?”
Right answer: I see myself progressing in the asset management business
and in the company, learning new skills to the benefit of the company. I
am willing to invest five years learning all aspects of the job to become a
contributor.
Wrong answers: Retired; not in this job; working at Amazon Asset
Management.
“Do you have the skills, expertise, and experience necessary
to perform this job?”
Right answer: Tell them repeatedly that you have a CFA or plan to get
a CFA as soon as possible.
Wrong answer: Tell them you’re a polymath and proud of it. You
majored in philosophy; built a 3D printer from scratch; play the cello;
know how to code; and box at the amateur level.
“What do you see as the important future trends in asset
management?”
Right answers: Dish up the tripe: (a) strategic partnerships will continue
REPRINTED FROM ai-CIO.COM JULY 19, 2015 ©1989-2015 Asset International, Inc. All Rights Reserved. No reproduction or r­ edistribution without prior a­ uthorization.
For information, call (203) 595-3276 or email [email protected].
For the world’s largest asset owners
(continued...)
to grow; (b) long-only active management will find a second life; (c) ETFs
are the real future of this business; or (d) fees will certainly be compressed
but skilled-based managers like you will not be impacted by this trend.
Wrong answers: Social analytics will be the next big driver of returns
and your firm lacks the technology and knowledge to even begin to access
and analyze this data.
“Use three adjectives to describe yourself.”
Right answer: Conservative, structured, optimistic.
Wrong answer: Collaborative, flexible, intuitive.
“Do you have any questions about this job?”
Right questions: What have you enjoyed most about working here?
What could you tell me about plans for new products or growth? How does
the breadth of products allow you to be truly consultative with clients?
Wrong questions: Do you really think these strategies generate alpha?
How do you justify these fee structures? When do I get equity?
With these insights, perhaps the most important question is one you now
must ask yourself: do you really want this job? As Barbarella told us, “A life
without cause is a life without effect.”
—Angelo Calvello
REPRINTED FROM ai-CIO.COM JULY 19, 2015 ©1989-2015 Asset International, Inc. All Rights Reserved. No reproduction or r­ edistribution without prior a­ uthorization.
For information, call (203) 595-3276 or email [email protected].