Putnam Investments is one of the largest investment management firms in the world, managing over $200 billion in assets. Landing a job there is highly competitive. In order to stand out, you need to be prepared for the kinds of questions you’ll face in the Putnam interview process.
Based on insights from actual interviews here are some of the most common Putnam Investments interview questions along with tips for how to nail your answers
Overview of the Putnam Investments Interview Process
The typical Putnam interview process consists of:
- A 30 minute HR screening phone interview
- 1-2 more phone interviews focused on fit and background
- An in-person “Superday” at their Boston headquarters with 5-6 more in-depth interviews
The interviews will include a mix of behavioral questions brainteasers, and technical questions focused on stock analysis, financial modeling and investment philosophy.
Some key tips for acing the process:
- Research the firm extensively so you can speak in an informed way
- Prepare stock pitches and have a point of view on markets/investing
- Practice brainteasers and technical questions ahead of time
- Be ready to walk through your resume in detail
- Ask thoughtful questions that show interest in the firm
Let’s dive into the most common questions:
Investment Philosophy Questions
Since Putnam is an active investment manager, they want to understand your investing philosophy and process. Some examples:
- How do you approach analyzing a company before investing in it?
- Walk me through your investment process from start to finish.
- What valuation metrics do you focus on most and why?
- What investment factors or models are most important to you?
- How do you generate investment ideas?
Tips for answering:
- Have a logical, step-by-step process for analyzing companies
- Show you dig into financials, understand valuation, competitive dynamics
- Explain factors you think predict stock outperformance
- Discuss how you screen for ideas and research trends
Stock Pitch Questions
Expect to present a long stock pitch on a public company as part of the process. You’ll get detailed questions about the pitch including:
- Why did you pick this company? What was your thesis?
- Walk me through the financial model/projections you built. Explain key assumptions.
- How does this company compare to its competitors on margins, growth, moats, etc?
- What are the biggest risks to your investment thesis?
- At what valuation would you buy/sell the stock?
Tips for stock pitches:
- Choose a company you’re very familiar with and passionate about
- Build a detailed financial model to back up your projections
- Analyze competitors and market trends thoroughly
- Have convincing arguments around upside potential and risks
- Be ready to defend your price targets and assumptions
Brainteasers
Putnam is known for brainteaser questions to test your problem solving abilities. For example:
- Why are rental tuxedos so much more expensive to rent than rental cars?
- You own a seasonal hotel that makes money in summer and loses in winter. At what point do you shut it down?
- If you started a small business on your university campus, what would it be and how would you market it?
Tips for brainteasers:
- Don’t make assumptions. Ask clarifying questions if needed.
- Think through problems logically and methodically
- Explain your thought process clearly step-by-step
- Be creative in exploring different angles to solve the puzzles
Behavioral & Background Questions
Since Putnam emphasizes culture fit, expect many behavioral questions like:
- Why are you interested in Putnam specifically?
- Where do you see yourself in 5 years? How can this role help you get there?
- When have you faced adversity and how did you overcome it?
- Tell me about a time you led a team project. What challenges did you face?
- What unique value would you bring to Putnam based on your background?
Tips for behavioral questions:
- Research Putnam’s culture and investment philosophy thoroughly
- Tie your background and passions back to fit with the firm
- Use the STAR method (Situation, Task, Action, Result) when answering
- Focus on examples that show leadership, resilience, creativity, and teamwork
Technical Questions
Junior candidates can expect basic technical questions while senior ones get more advanced concepts:
Associate/Analyst
- What does EPS stand for? How is it calculated?
- Walk me through the 3 financial statements. How are they linked?
- What is the difference between revenue and profit?
Senior Roles
- How would you value a company using comps or DCF analysis?
- Explain dividend discount models and how you would use them.
- How can you tell if a company’s ROIC is good or not?
Tips for technical questions:
- Brush up on accounting, valuation, and financial modeling fundamentals
- Use examples if helpful to explain financial concepts clearly
- Ask for clarification if you don’t understand part of the question
Questions to Ask During Your Interview
Always prepare 2-3 thoughtful questions to ask at the end. This shows your interest in the firm. Examples:
- How would you describe the culture at Putnam? What makes it unique?
- What characteristics make someone succeed in this role?
- What investment sectors, asset classes, or geographies are most interesting right now?
- How does Putnam incorporate ESG into its investment process?
- How could I add the most value within your team in the first 6 months?
With intense competition for roles at Putnam, you need to come prepared to stand out. By mastering the likely interview questions, practicing your stock pitches, and showcasing your passion for investing, you can greatly increase your chances of landing your dream job there. Do your research, tell compelling stories, and show how you’re a cultural fit, and you’ll be in a strong position to receive an offer.
Putnam InvestmentsAsset Management
Based on the Interview Insights at this company, the Interview Experience is a score between 1 star (very bad) and 5 stars (very good).
The number in the middle of the doughnut pie chart is the mean of all these scores. If you move your mouse over the different parts of the doughnut, you’ll see exactly how each score was calculated.
The title percentile score is based on an adjusted score based on Bayesian Estimates that is applied to the whole Company Database. This is done to account for companies that don’t have many interview insights. For easy explanation, when a business gets more reviews, the belief in its “true score” grows. This makes it move closer to its own simple average and away from the overall average of the dataset. 3. 8.
Based on the Interview Insights at this company, the Interview Difficulty is a score that goes from “very difficult” (red) to “very easy” (green).
The number in the middle of the doughnut pie chart is the mean of all these scores. The higher the number, the more difficult the interviews on average. This doughnut has different parts that, when you move your mouse over them, show you the 20% breakdown of each score given.
The title percentile score is based on an adjusted score based on Bayesian Estimates that is applied to the whole Company Database. This is done to account for companies that don’t have many interview insights. That is, as a business learns more, it becomes more sure of a “true score,” which moves it closer to its own simple average and away from the overall average of the data set. 3. 1.
Based on reviews at this company, the 20% of interns getting full-time offers chart is meant to give you a good idea of how the company hires people.
The number in the middle of the doughnut pie chart is the mean of all these scores. This doughnut has different parts that, when you move your mouse over them, show you the 20% breakdown of each score given.
It uses an adjusted score based on Bayesian Estimates to account for companies that don’t have many reviews, which is how the percentile score in the title is found. To put it simply, when a business gets more reviews, the “true score” becomes more likely to be accurate. This makes it move closer to the simple company average and away from the average of all the data. 35%.
Mock Interview Question: Why Investment Banking?
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