20 Point72 Interview Questions and Answers

As a leading global investment firm, Point72 is always looking for talented individuals to join their team. If you’re lucky enough to score an interview with this company, you can expect to be asked some tough questions.

In this article, we’ll give you a rundown of some of the most common Point72 interview questions, so you can go into your interview prepared and confident.

Point72 Interview Process

The interview process at Point72 can be long and difficult, with multiple rounds of interviews and testing. The first round is usually a written test, followed by a case study. For the final round, candidates may have to do a presentation or pitch a stock. The whole process can take up to two weeks.

1. How would you define a hedge fund?

Point72 is a hedge fund, so the interviewer may want to know how you define this term. Your answer should include your definition of a hedge fund and also why it’s important for Point72 to be one.

Example: “A hedge fund is an investment vehicle that uses multiple strategies to generate returns in any market conditions. It can invest in stocks, bonds, commodities or currencies, but its main goal is to protect investors from losses. This is because hedge funds are private investments, which means they’re not regulated by the Securities and Exchange Commission (SEC). They don’t have to disclose their performance data either.”

2. Tell me about your understanding of the capital markets.

This question is a great way to test your knowledge of the financial markets and how they work. You can use this opportunity to show that you have an in-depth understanding of the capital markets, including their history, current trends and future outlooks.

Example: “The capital markets are where investors buy and sell stocks, bonds, commodities and other securities. The U.S. capital market is one of the largest in the world, with over $50 trillion worth of assets traded every year. I understand that the capital markets are constantly changing, so it’s important for me to stay up-to-date on any new developments or regulations.”

3. What is an event-driven strategy and how does it impact the market?

Point72 invests in event-driven strategies, which are a type of investment that depends on an upcoming event to make money. An interviewer may ask this question to see if you have experience with event-driven strategies and how they can impact the market. In your answer, try to explain what an event-driven strategy is and why it impacts the market.

Example: “Event-driven strategies involve investing in companies based on upcoming events. For example, I worked at a hedge fund where we invested in stocks before mergers and acquisitions were announced. This strategy impacted the market because when we made investments based on these events, other investors would follow our lead and also invest in those stocks.”

4. How do you think technology will change financial markets in the next five years?

This question is an opportunity to show your knowledge of the financial industry and how you can apply it to future trends. Use examples from your own experience or research to explain how technology has already changed the financial market, and what you think will happen in the next five years.

Example: “I believe that technology will continue to change financial markets in the next five years. For example, I have seen a lot of growth in robo-advisors, which are online investment advisors that use algorithms to manage client portfolios. These services are becoming more popular because they’re easy to use and offer low fees. In my last role, we used robo-advisors for our clients who wanted to invest but didn’t want to spend time researching their options.”

5. Why do you want to work at Point72?

This question is a great way to show your interest in the company and its values. It also allows you to talk about what attracted you to this role, which can be helpful if you are applying for multiple positions at Point72.

Example: “I want to work at Point72 because I am passionate about investing and believe that it’s important to invest ethically. Your firm has an excellent reputation for doing so, and I would love to be part of that team. I have always been interested in finance, and I think working here would allow me to use my skills to make a positive impact on the world.”

6. Give us an example of a time where a trade did not go as expected, how did you handle it?

This question is an opportunity to show your problem-solving skills and ability to learn from mistakes. When answering this question, it can be helpful to highlight a specific situation where you were able to overcome challenges or obstacles.

Example: “In my last role as a portfolio manager, I was responsible for managing multiple accounts that included both long-term and short-term trades. One of the accounts I managed had a large position in one company’s stock, which resulted in a significant loss when the company announced layoffs. While I was disappointed with the outcome, I learned from the experience and adjusted my strategy so that similar situations would not occur again.”

7. What type of investment strategies interest you most?

Point72 invests in multiple asset classes and strategies, so the interviewer wants to know which ones you’re most interested in. This helps them understand if your interests align with Point72’s investment strategy.

Example: “I’m very passionate about emerging markets because I believe they have a lot of potential for growth. I also enjoy investing in small-cap stocks because there are always opportunities to find undervalued companies that can grow into large corporations. Finally, I like value investing because it allows me to find companies that are trading at low prices but still have strong fundamentals.”

8. Do you have experience using Bloomberg terminals?

Point72 uses Bloomberg terminals to monitor financial markets and make investment decisions. If you’re interviewing for a role that requires using Bloomberg, it’s important to show the interviewer that you have experience with this software.

Example: “I’ve used Bloomberg in my previous roles as an analyst and portfolio manager. I find it helpful to use Bloomberg to analyze market trends and compare different companies’ performance. It also helps me stay up-to-date on current events that may affect the financial markets.”

9. What are some things that you look for when analyzing a stock?

This question is a great way to see how you approach your work and what skills you use. When answering this question, it can be helpful to mention specific strategies or methods that you use when analyzing stocks.

Example: “When looking at a stock, I first look at the company’s financial statements. This helps me understand their current situation and if they are in good standing. Next, I look at the balance sheet to see if there are any assets that may help them grow. Then, I look at the income statement to see if they have been making money consistently. Finally, I compare the company to others in its industry to see where it stands.”

10. How often do you check news updates on stocks that you own?

Point72 invests in multiple asset classes and strategies worldwide. The interviewer wants to know if you have experience with this type of investment strategy. Your answer should show that you understand the importance of keeping up-to-date on news about your investments.

Example: “I check my portfolio at least once a week, but I also subscribe to email alerts from financial websites so I can get updates when there are major changes in stock prices or company announcements. This helps me stay informed about any opportunities for growth.”

11. Are you comfortable working with clients or customers?

Point72 has a large client base, and the company wants to make sure you’re comfortable working with them. This question helps interviewers determine if you have experience interacting with clients or customers. Use your answer to highlight any previous customer service experience.

Example: “I’ve worked in sales for five years now, so I’m very familiar with how to interact with clients or customers. In my last position, I was responsible for managing our social media accounts and responding to comments and questions from followers. I also helped develop new marketing strategies that would attract more customers.”

12. Do you have any experience creating models?

Point72 uses models to analyze and predict market trends. This question helps the interviewer determine if you have experience with Point72’s modeling process. Use your answer to highlight any previous modeling experience or skills that may be transferable to this role.

Example: “I’ve used Excel for many years, so I’m familiar with creating formulas and functions. However, my last job required me to use a more advanced modeling software called MATLAB. It was challenging at first, but after some practice, I became proficient in using it. I can confidently say that I could apply what I learned from MATLAB to excel.”

13. What has been your favorite class so far?

Point72 is a large company that invests in multiple asset classes and strategies. The interviewer may ask this question to learn more about your interests and passions, as well as how you might fit into Point72’s culture. When answering this question, try to be honest about what you enjoy studying the most while also showing enthusiasm for learning new things.

Example: “My favorite class so far has been my business ethics course. I’ve always had an interest in ethical behavior and wanted to know more about why people make certain decisions. In this class, we learned about different types of ethical dilemmas and discussed ways businesses can avoid these situations.”

14. In what ways can you contribute to our team’s success?

Point72 is a highly competitive workplace, and employees are expected to contribute to the company’s success. Your answer should show that you understand this expectation and have the skills necessary to succeed in your role.

Example: “I am an extremely hard worker who always strives for excellence. I know that Point72 has high expectations of its employees, so I’m prepared to work as many hours as it takes to get my job done. I also believe that teamwork is essential to success, so I will do whatever I can to support my colleagues. Finally, I am committed to learning new things and developing my skills, which means I’ll be open to feedback and suggestions.”

15. If we were to ask one of your professors about you, what would they say?

This question is a great way to learn more about the candidate’s academic background and how they’ve grown since their college days. It can also help you determine if they have any connections with Point72 that could be beneficial for your hiring process.

Example: “I had an accounting professor in my senior year who was very passionate about his work, which made it easy to pay attention in class. He would always tell us stories of his time working at different companies and what he learned from each experience. I think he would say that I’m a hard worker who pays attention in class and asks questions when I need clarification.”

16. Have you ever worked under pressure? Describe a time when you had to perform under pressure.

Point72 is a high-pressure environment, and the interviewer may ask this question to see how you handle pressure. When answering this question, it can be helpful to describe a time when you performed well under pressure and what helped you succeed.

Example: “I have worked in investment banking for five years now, and I’ve had many opportunities to work under pressure. In my previous role as an analyst, I was responsible for analyzing multiple companies at once. This meant that I often had tight deadlines to meet. However, I always made sure to prioritize my work so that I could complete it on time. I also learned to manage my stress levels by taking breaks throughout the day.”

17. Can you tell us about a time when you disagreed with someone and how you handled it?

Point72 is a company that values teamwork and collaboration. Your answer to this question can show the interviewer how you handle disagreements in the workplace. Use your answer to highlight your ability to collaborate with others, communicate effectively and solve problems creatively.

Example: “In my last role as an analyst, I disagreed with my supervisor about which stocks we should invest in. Instead of arguing with her, I presented my case for why I thought those stocks were good investments. She agreed to let me make the investment, and it turned out to be one of our best decisions. We learned that sometimes it’s better to disagree respectfully than to agree just to please someone.”

18. When was the last time you lost money on an investment? How much money did you lose?

Point72 is a highly competitive environment, and the interviewer wants to know how you react when things don’t go your way. Your answer should show that you can take constructive criticism and learn from it.

Example: “I once invested in a company that was doing well at first but then started losing money. I didn’t want to sell because I thought the stock would recover, so I held on for several months before selling at a loss of $10,000. It taught me to be more cautious about my investments.”

19. We like to hire people who are quick learners. Give an example of a time when you learned something quickly.

This question is a great way to show your ability to learn new things. Employers want people who can adapt and grow with their company, so it’s important to highlight how you’ve done this in the past.

Example: “When I first started working as an analyst, I was tasked with creating a financial model for a client. I had never created one before, but my manager helped me through the process. After that, I practiced making models on my own until I became comfortable with the process. Now, I’m able to create models quickly and efficiently.”

20. Which three qualities are important to be successful in this industry?

This question is a great way to show your knowledge of the industry and how you can apply it to this role. When answering, think about what qualities you have that make you successful in your current or past roles. Consider including these qualities in your answer.

Example: “I believe three qualities are important for success in this industry. The first quality is creativity. I find that many people in finance rely on tried-and-true methods, but sometimes we need to be more creative with our strategies. Being able to look at things from different angles helps me come up with new ideas and solutions. The second quality is communication. In my experience, being able to communicate effectively has helped me solve problems and achieve goals. I am always willing to listen to others’ opinions and provide feedback when appropriate. Finally, I think collaboration is an important quality. Collaboration allows us to work together toward common goals.”