4 questions reported in Baupost interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Business quality, position sizing, benchmark risk and turnover discipline. 2 questions
You are interviewing at an active manager. This question is not rhetorical.
Most active managers underperform their benchmark after fees. Why are you pursuing a career in active management? Make the strongest case, and acknowledge the strongest counterargument.
Distinguishes candidates who think about portfolios from those who only think about stocks.
You have 20 high-conviction ideas. How do you decide position sizes? Discuss concentration versus diversification, and how correlation affects your decisions.
Merger models, accretion/dilution, purchase accounting and deal judgement. 1 question
A curveball used to see whether you reason from first principles.
Can enterprise value be negative? What would that imply, and would you buy such a company?
Variant perception, catalyst mapping, short construction and sizing. 1 question
The question behind every stock pitch. Funds want to know how you generate ideas, not just evaluate them.
Markets are broadly efficient. Where do you actually find a view the market doesn't already hold?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Baupost.