Hedge Fund Investing: All about HFs with Nikhil ($15bn AUM fund) & Goldman I-Banking prior

In this discussion, Kaushik is joined by Nikhil, Hedge Fund Investor ($15bn AUM fund). Prior to that, he worked in Goldman Sachs Investment Banking. He joined a Hedge fund straight out of investment banking - which is a very challenging job to get. 

We talk about so many topics related to the Hedge Fund job, HF vs. Private Equity, Finding great investment ideas, the psychology part of public markets, technical skills you need on the job, the comp structure at a HF, the HF interview process, the rise of passive vs. active, and much more. 

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3:15: Why Hedge Fund right out of Investment Banking vs. Private Equity?
7:35: How do you find great investment ideas & what are his strategies for sourcing?
12:20: Psychology aspects of public markets
13:00: Pros and Cons of Hedge Funds right out of Banking vs. Private Equity?
15:00: Differences between PE and HF - Public markets is all about psychology of investing; big picture vs. details
17:40: Technical skills on the job & how he thinks about valuation as a function of opportunity cost
21:45: Coding and quant skills for the job?
24:50: Soft skills: Convincing people of your ideas & communicating risks to an investment
28:05: What is the comp structure like in the HF world? At what point do you get carry?
30:00: Why have some funds in the HF industry struggled recently? “It’s a tough job”
32:30: Rise of passive strategies vs. active investing
34:30: What is the Hedge Fund interview process like?
37:00: Rapid fire round: Market at end of 2020; favorite investing book; what he reads daily; best advice