Career Job Interview Flashcards
Tell me about yourself
Career not personal. Recent work experiences. My journey and where I am going.
Accomplishments.
Key strengths as they relate to the job I am applying for. and how that would benefit the firm.
How I see myself fitting in to the company.
Started career / 20 / PM & A / CAD & AUD / Styles / FSA & MFM / Info Data Tools / Tech & RM Frame / Specialization / PM GNRF / 3 Mandates
- 20 years of experience across institutional and high net worth investment management
- Portfolio Manager and Analyst in Australia Canada and Ireland.
- Managed money for Canada’s largest Mutual fund complex (>e100bn). At the other end of the scale I managed AUD$350m of HNW client money.
- Exposure to broad range of investment styles including GARP, value, growth, quality and multi-factor. * Skills including bottom up financial statement and company modelling, multi factor screening models,
- use of Bloomberg, Datastream, Factset, Starmine and Morningstar.
- Robust technical/risk management framework.
- Deep Specialist industry/sectoral skills in the Energy and Materials sectors.
- PM of a Global Natural Resource Fund (4 years).
- I also was named on 3 other funds - European Large Cap Growth, European Mid Cap and Global Equity portfolios.
- WHY DO YOU WANT TO WORK HERE / REASONS WHY
* Need to be honest - what is important to me.
* Do i admire the company, use their products, have a great success story that I am attracted to.
* A specific reason, unique that no one will offer.
* Should demonstrate my ability and understanding with the company.
* Interviewers like to here positives about the company - are you impressed with background and stories of the founders, or i share similar values.
* I love the investment industry and find markets endlessly fascinating. I like the idea of a small team without layers of complexity and overseas reporting lines.
*
I compliment the team.
love inv / mid size / gr8r contrib / broader asset class exp / Less excited by mutual fund / nomination top 20
- Firstly I love the investment industry and find markets endlessly interesting.
- I like the fact that the company is mid-size and growing.
- I like the smaller investment team where I think it’s possible to have a larger contribution.
- I like the fact that I will get exposure to a broader set of asset classes - Fixed income, property and Alternatives (including infrastructure)
- I am less excited by the mutual fund model - chasing short term quarterly performance, high fees and lots of musical chairs with positions.
- I like the Top 20 great places to work for med size enterprises nomination. I would love to think its true.
DO YOU PREFER WORKING WITH OTHERS OR ALONE?
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Asking if you are a team player.
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need to show I can work well in team and also shoulder individual responsibility as well
- Both.
- I love the time immersing myself in research and spreadsheets. There are times when I want to put my headphones on and get into the zone and really focus.
- But I also find sharing knowledge and testing my ideas to be fulfilling. Quality checking my thinking with peers is core to my professional practice.
WHAT ARE YOUR SALARY REQUIREMENTS
* Try and avoid it in the interview. * sort it out before when first contacted by the employer * Can you tell me the salary range for this position. * Be honest and tell the interviewer what you want to make and why I am worth it. * Avoid quoting published salary guidelines for your position. * Dont tell the interviewer that you can make more money by going to a different company - comes across as an ultimatum. * Benefits - bring up after you get the job offer. * If you get offer and they are not meeting your salary requirements try to leverage additional vacation. * Another strategy if they are not meeting my salary expectations is to make the additional salary contingent on my performance over the first 90 days. * State a salary range like e110k to e130k.
In discussions with my network, someone with my level of experience sees range of e100k-150k for many roles, as base salary.
Then bonus can be as low as 30% in some places and up to 100% if you are at State Street or Pioneer.
Then places vary as to how much pension or other ancillary benefits are included.
WHAT DO YOU CONSIDER YOUR MOST SIGNIFICANT WEAKNESSES (ONE PARTICULAR AREA OF CRITICISM)
* Real question is could you do the job well and fit into the organization. * Forces the interviewer to tell something negative about yourself * Best way is not to tell the interviewer you have a problem * Talk about the weaknesses you have overcome. I was a somewhat direct in communications and have managed to be more tactful. * I had a real determination to come up with the ultimate best work which sometimes meant not as high productivity as some others. Over time I have managed to work out key drivers and focus on those.
- At this stage in my career, I don’t have any significant wrinkles to iron out.
- But I’m not a sales guy or a cold caller.
- Early in my career, when doing initiation work on companies, I had the habit of being so focussed on getting the call right and doing high quality work, that it was suggested that my productivity could be improved.
- Today I know how to establish what the key drivers are and place the majority of my attention there, and let the subsidary issues get pushed to one side.
What are some of the things you did not like about your last job?
* Dont rattle off any negatives * keep answer short * What opps were denied to me? * Start with positives
Great
- Start with positives like really smart people, always testing the boundaries of up to the minute evolution in markets.
- Latest technology. Full suite of tools
- Scope to explore interests.
- Lots of opportunties for Growth.
Not so Great.
- Lack of boundaries between job and personal.
- Up before 6am for morning meeting prep AND often on conference calls talking to Asian or Canadian PM’s after 11pm.
- It didn’t matter where you were in the world, if one of your companies was reporting, you had to publish comments within 30 minutes of the market open.
- No such thing as holidays.
Why should I hire you?
* Often the last question asked in an interview. * My chance to restate skills that are relevant to the position and summarise my qualities that make me a perfect fit. * Really understand the employers business. * Focus on THEM not on me. * emphasize my knowledge and experience to demonstrate value on how I could do the job. Constantly met with industry CEO's, reported to the Board level on fund performance, did deep dive research work, presented and held Q&A in front of audiences up to 100. * Short and to point reflecting background and needs to the position * Align my skill set (have a list) with each bullet point of a job description * List skills and Strengths. Write Challenges, Actions and Results stories about accomplishments. * Uncover what makes me special by reviewing testimonials from others. + * What are the goals of the position - if unclear ask and incorporate into my answer as the solution to their problem. * Show how my skills support their goals. * Articulate shared values. Look at their mission statement. Explain why these are in line with your own values and goals. * State my interest in the position and be enthusiastic. Make sure interviewer knows you want the job. * I have the qualifications you are looking for (list them).
When I look at the responsibilities of the role, I feel I thoroughly tick all the boxes
1) PM and analyst experience
2) Significant Stock and sector analysis history
3) Idea generation and contribution to strategy
4) Very strong on Report writing and presentations.
5) Communication to the Board
6) 2 Post grade qualifications in Finance one of which is the CFA
7) I have 15 years experience investment decision making.
8) Incredibly strong work ethic
9) Extensive working knowledge of Bloomberg, Datastream, Starmine, Excel, Powerpoint etc.
10) Demonstrated history of dealing with industry CEOs and management teams.
11) Multiple investment frameworks
12) Wide toolkit of valuation methodologies.
MISTAKES I HAVE LEARNT FROM
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cite an eg from the past and what i learned.
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Keep short answer and how I corrected it.
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talk about how you now have a series of checks and balances to keep you honest.
MISTAKE: ENRC highest quality ferrochrome producer. Was falling and I didn’t acknowledge my thesis was wrong till the stock was down 40%>
LEARNING: I learned that I needed a way to recognise my errors quickly and I started to introduce technical levels where I had to accept that my thesis was wrong.
WHAT CAN YOU DO FOR US THAT NO ONE ELSE CAN?
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Interviewer wants to see what I think are my best strengths and how i distinguish myself from others
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Mention I have skills education and training for the job and show how they will benefit the company.
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- Unique blend of skills that encapsulate quantitative multi-factor modelling, bottom-up financial statement analysis & technical risk management overlay.
- Combine this with experience across a number of cycles (worst of which was 54% retracement 2008-9)
- Significant experience talking to industry leaders and decision makers and Board members.
- Exceptional written and presentational skills.
THINGS THAT ME AND SUPERVISOR DISAGREED WITH?
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Take negative answer and turn it around.
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What you do when those disagreements take place says a lot about you.
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If you dont disagree it might show you as weak minded and could have negative consequences forthe co
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Civil disagreements are healthy for the company
- I love hard work. I am invested in what I do. I try to encourage the same of my kids. I teach them to grow you have to keep testing yourself. My wife, who has held a number of high profile roles, is of exactly the same mindset.
- There are always times that we have to really go over and above. If we have to work all weekend to get the job done, that’s what we do.
- What I don’t like, is the workplace where you have to be seen to be putting in more hours than anyone else
- We disagreed about a lot of things. It was really his way of seeing your conviction level.
- I learned early on that in a public forum I was best to pose questions rather than outright disagree.
- I also used to find private moments to highlight to him that I thought he should consider this, read this. I would often forward on materials that I thought would help him see the issue in a different light.
How do you get along with different types of ppl?
* Trying to work out how you get on with ppl * Need to show that its all about the work getting down and that I am more concerned with outcomes than personalities. * Most interviewers are seeking to understand if the person being interviewed is positive and solutions-based, as well as a strong communicator, * I work well with anyone who delivers what they promise. * We all have different personalities. * For me its all about relationship building, getting to know about the important things in their life and ocasionally asking questions about those things.
There are lots of different personalities in the workplace.
I focus on relationship building by trying to find things that are important to the other person. I remind myself to regularly ask them questions about those things.
Why did you choose this career path/profession?
* Show what inspired me. Be short.Describe my thought process. * Try to show logical progression.
- My first inspiration was Warren Buffett and Roger Lowensteins book Making of an American Capitalist.
Investment seemed like unlocking a code to some great big treasure hunt.
I still love the researching, digging, reading, learning about industries, working with numbers.
Describe your investment process?
I look through 4 lenses
1) Mutli Factor Quant Screening Process - based on value, quality, fundamental momentum and price
2) Macro Cycle Framework - that helps to see where an individual country is in its own cycle.
3) Bottom up Industry framework - thinking about early, mid and late cycle positioning
4) Company Analysis Framework which I break in to 2 core parts:
A) Core is a focus on growth orientated companies with predictable MT-LT earnings streams, above average growth potential, high quality business franchise and large growing addressable market/s.
B) Cyclical/Not as high quality names I:
- Develop a clear understanding of the key drivers
- Push scenarios through financial models to produce bull, bear and base case valuation ranges
- Producce clear understanding of upside and downside cases
- I try to look for 3:1 risk to reward situations.
Describe the Mult Factor Quant Screening Model?
Protects against BIAS in a pure bottom-up process and is a great feedback loop to ask more questions.
Fundamental Momentum 30%
Surprises - across sales, margins, EPS
Revisions across Sales, Margins, EPS, FCF and returns; Returns Momentum
Quality 20%
EPS Stability, 5yr average ROE/ROTC, ND/Ebitda, CFO/Assets, Debt/Assets
Quality/Value Mix 30%
ROIC / Ev/ebitda, ROE/PtBV, ROIC/EY, EV/Sales
Price – 20%
Individual and Group relative strength
Tell me about the Macro Cycle Framework?
Asset classes, industries and investment style are either OW or UW depending on where they are within a 4 phase economic cycle - Recovery, Expansion, Slowdown and Contraction
Recovery
Growth is improving while inflation is still decelerating
Monetary policy is easy
OW EQ and CR and UW FI
Expansion
Growth and inflation accelerating
Monetary policy could is starting to be tightened
OW EQ and CR
Slowdown
Growth slowing and inflation still rising
Monetary policy now tight
OW FI and UW Eq and CR
Contraction
Growth and inflation slowing
Monetary policy Easy
OW FI and UW Eq and CR
What about the bottom up Industry and Company Analysis Framework?
Industry
LIke to determine if the industry is early, mid or late cycle
Company
I like to try and establish 3:1 Reward to risk situations.
I establish key drivers for a company
Understand the upside and downside risks
I push scenarios through a DCF and multiples framework to iterate my way to a better understanding of the reward/risk situation
I also use at times SOTP and comparative comps analysis to see companies realtive to peers.
What was the Investors Group Process for Coverage of companies?
- So with every initiation we would always have to have a tearsheet, a PDF of our written research and a presentation.
- Tearsheet This was a Like a summarised version of your bottom-up model where all of your key drivers were displayed and represented versus consensus for forward year forecasts.
- It also showed off Your valuation methodologies, The mandates or funds that it was applicable to, you’re Divisional forecasts, Company description and outline of your investment case, And ultimately you’re ruling reason for your investment recommendation
- The research reports And what we called initiation reports were originally very large documents. They eventually got whittled down to around about 20 pages.
- You would outline the business model, Downside risks, upside risks, Scenario analysis, Divisional analysis, Capital intensity of free cash flow generation, Executive and management history, Various valuation methodologies,
- You would then present your idea Locally to PMs who are interested in the name. Then you would present globally.
DCF
I would Come up with Different PTs based on variable wacc and terminal growth rates
* Because they covered a lot of commodity sectors I was quite good at pushing through scenarios In my discounted cash flows. I would have various volume sales margin scenarios from bull and bear and bass cases and I would drive to and through my DCF to determine outcomes.
* My standard DCF was a three-phase model. I would have an explicit period, semi explicit. And fade period. I would have by DCF broken out that I can see how much of it is driven by the explicit semi fade and terminal value.
* Discounted cash flows Always work better with More stable companies and so there are certain Areas of the market where I could not use them.
* So I often used multiples and used scenario analysis to come up with bull base and bear cases.
* For oil and gas producing companies I used EV/DACF
for integrated oils (interest added back to CF to fix distortion from higher debt companies) and EV/BOE AND for exploration companies i used a priced NAV valuation methodology, EV/1P or 2P,.
* For Oil and gas services are used to triangulation between the discounted cash flow approach and multiples.
* For the higher quality specialty chemicals are used to discount cash flow.
* For the very ugly steel Cos I could only ever use multiples.
Tell me about various investment cases?
- Three could have been based on things a merger/takeover and Synergies and the consequent impact on Growth margins and cash generation
- Could’ve been the start up of the new production facility
- Spin-off and subsequent rerating Of the core business
I could be an industry based issues like where China stop being a monstrous supplier of steel and introduced supply-side reforms - Even lower Raw material prices which would shift the economic Went from one party in the value chain to another
- Another one would be a changed Paradigm. An example here would be Japanese Chemical companies which for years had been commodity players and were moving to a much larger specialty chemical focus
- In industry might have been in massive overcapacity and had gone through a rationalisation over many years that was starting to yield positive benefits
- Potentially there was a demand growth environment where supply was not likely to arrive for 12 to 24 months
- Another could’ve been technological leadership in a particular area that would allow for a period of supernormal profits before others caught up.
- In other cases a company might be an industry leader And is really a capital compounder where you are buying it at a discount to it’s longer term growth rate potential
What do you know about IPB?
George Jones is the Chairman
Michael Garvey’s CEO
Frank cunneen is the head of investments
The Irish insurance sector return to profitability in 2017 after a number of difficult years
Overall non-life insurance industry losses in 2015 were €339 million. In 2016 this had improved to €94 million loss
Looks like the overall IPP business was loss-making through 2013 to 2015 versus a €16 million gain in 2016. The business continues to be impacted by increased claims frequency and costs
IPB has an a credit rating
Mutual insurance company is 100 entirely by its policyholders. Any profits and by mutual insurance company are either retained within the company or rebated to policyholders in the form of dividend distributions of reduced future premiums.
It appears to be a growing business. In 2017 gross written premium group €241 million at 13% increase on 2016. This was a combination of both policy And rate increases.
2017 challenges included Claims frequency and Cost of claims.
In 2017 the net combined operating ratio was 97.7% which was an improvement from 104%.
Net expense ratio was 14.9%( Industry averages 26%).
There is a paragraph in Michael Gervaise CEO statement three 2017 when he says that Budget forecast for 2018 predict that returns will revert to market and industry norms of 1% to 1.5% as the six-year period of exceptional investment profits comes to an end. The 2017 Investment return of 3.2% was a remarkable achievement then compare it to 1.9% For the prior year and exceeds the weighted average benchmarks of 1.4% by almost 2%
A great place to work Institute ranked IVPB is one of Ireland stop 20 places to work in the medium-sized enterprise category
I was reading about the investment committees reviewing and monitoring of the application of IPP’s investment policy in line with the risk appetite statement
Interestingly when looking at the net investment return for 2017 (page 75) €29 million was from equity security gains and income while the total was €39 million hence equity is made up the bulk of the return
In 2016 equities generated a net loss of €3 million had a total return of €23 million
In 2017 IPB 126 permanent staff
What are the latest buzz words or newsworthy items for the Irish Insurance Industry?
I read a recent PWC report:
- Importance of technology continues to grow especially in risk analysis and decision making
- Cyber insurance is coming
- Cost of claims is a big issue
- threats from industry regulation/Brexit
- Expansion into new markets, product innovation and diversification are key opportunities
- Longer term impact of Autonomous vehicles.
How do I spend my spare time?
** What does it say about my skills and motivations at work?
- I love Sport.I have always been very driven.I was ranked in the top 8 in still water swimming in Australia between the ages of 7 and 21.I also have state and national medals for surf swimming. I played rugby league and rugby union through High School.
- Recent years I have been an avid cyclist. I completed the 140km ring of Beara race in 2017.
- Last year I decided to take up tennis. My game is improving and I’ve played in a few handicap tournaments. I want to get better. My family is a member of the Sandycove Tennis Club.
- I like to push myself. I like to compete. I like to achieve.
- For the last 4 years I have coached and manage my son’s football team at Dalkey United.I enjoy the energy that I get back from them as I see them develop and improve. I have 21 kids in the squad and 42 parents on Whatsapp!!
What is my personality?
** Implications for the job
- Adaptable/Flexible
- Committed
- Curious - real knowledge comes from pulling things apart.
- Disciplined
- Determined.
- Tenacious
- Self aware - believe what is holding me back is what i cant see.
- believer in self growth
What kind of work appeals to me?
I like:
- Researching / exploring / investigating / learning
- categorising
- reading
- working with numbers (modelling)
- getting to the heart of an issue
- Making decisions.
- presenting my findings.
How much effort am I prepared to put into my work?
If I reflect on the three areas that most people have commented on, to me, they would be
- work ethic
- presentation skills
- educator
So I think over time I have received a lot of external validation for my work ethic.
