How to answer this Strategic Thinking interview question about Investment Balance for Senior-Level Asset Manager?

How do you balance short-term gains with long-term investment goals in a portfolio?

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Asset Manager

Strategic Thinking

Asked at

Goldman Sachs

Difficulty :

Hard

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Explanation

This question evaluates your ability to align investment strategies with both immediate market opportunities and long-term client objectives. Recruiters are looking for your understanding of portfolio diversification, market timing, and goal-setting. A strong answer demonstrates your ability to manage trade-offs and includes specific examples. Avoid focusing solely on one aspect or failing to mention client communication.

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Answer Example

I balance short-term gains and long-term goals by maintaining a core-satellite portfolio strategy. The core consists of stable, long-term investments aligned with the client’s objectives, while the satellite includes tactical investments to capitalize on short-term market opportunities. For example, this approach helped a client achieve a 12% annualized return over five years while maintaining a risk level suitable for their goals.

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