Sample interview questions: Can you discuss your experience with managing the fund’s exposure to market liquidity risks during periods of extreme financial stress, while maintaining operational efficiency?
Sample answer:
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Developed and implemented a comprehensive liquidity risk management framework:
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Established a liquidity risk committee to monitor and assess the fund’s exposure to market liquidity risks.
- Developed and implemented policies and procedures to manage liquidity risk, including daily stress testing and backtesting of the portfolio.
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Utilized a risk management software platform to track and monitor the fund’s liquidity profile in real-time.
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Navigated periods of extreme financial stress:
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During the 2008 financial crisis, actively managed the fund’s exposure to market liquidity risks by reducing positions in illiquid assets and increasing exposure to more liquid assets.
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During the 2015-2016 market turmoil, implemented a liquidity contingency plan that included reducing leverage, increasing cash reserves, and diversifying the fund’s portfolio.
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Maintained operational effici… Read full answer
Source: https://hireabo.com/job/1_2_10/Hedge%20Fund%20Manager