Question
Was there a spark that kindled your interest before you ever seriously considered being a hedge fund manager?
Answer
Greg likes being a hedge fund manager
I focus on the telecom, media and technology sectors in the equity markets. I also spend time analyzing IPOs. I enjoy analyzing business models, industries and management teams. Additionaly, anticipating and reacting to various corporate events - share repurchases, debt refinancing, mergers/acquisitions, new product cycles, bankruptcies, spin offs - makes each day quite interesting.
Question
What was the most important thing you did to become a hedge fund manager?
Answer
Greg Arrese
I simultaneously pursued a CFA (Chartered Financial Analyst) designation while earning an MBA from Harvard. In hindsight, both were not needed - but it certainly didn't hurt as some hedge fund managers I interviewed with appreciated the Harvard MBA while others appreciated the CFA designation.
Question
What is the most important skill for someone who wants to become a hedge fund manager?
Answer
Greg Arrese
An (equity) hedge fund manager needs to: Quickly synthesize various pieces of information about companies or industries Analyze company financial statements (income statements, balance sheets, cash flow statements) Perform valuation analysis of companies using various methods (P/E, EBITDA multiples, free cash flow yields) Speak with management teams, other buyside / institutional investors, sellside research analysts, etc Love the stock market
Question
What was the most rewarding experience in your career as a hedge fund manager?
Answer
Greg Arrese
Launching a fund with a partner and a great team of professionals.
My first personal equity trade was buying shares in Atari in the early 1990's. I bought the stock because I was excited about a new product being released, "Jaguar" (a new 64-bit video game console). About a month after I bought the shares, the stock price almost doubled and I sold my shares for a nice gain. I was hooked. Little did I know how hard it was to consistently make solid returns in the public markets.