Hedge Fund Trader Question:
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Why is the market wrong and how will the market realize the intrinsic value of the business?

Hedge Fund Trader Interview Question
Hedge Fund Trader Interview Question

Answer:

This is the most important part of the pitch. I usually begin, "ABC is currently valued at 10x [insert multiple], but is being unfairly discounted because of the incompetency of the prior management team. Since the current management team has taken over [insert metric] has improved XYZ. As of right now the market has not recognized the improvement in XYZ or the overall business, but I expect that [insert catalyst] will demonstrate ABC's true value to the market within [insert time frame

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Do you have any idea what is the strategy of our fund?Suppose If you could only be provided on piece of information (read: metric) about a company before making an investment-decision what would it be?