Educating yourself is a must when preparing for hedge fund interviews. Tips include:

Follow the markets on a regular basis and develop a clear point of view.

Keep up with current events that may be affecting the Hedge Fund industry and think about how they may affect the industry going forward.

Read books on investing, and on different hedge fund strategies and managers (suggestions below, bolded are recommended).

Anson, Mark J.P.The Handbook of Alternative Assets

Bernstein, PeterAgainst the Gods: The Remarkable Story of Risk

Bernstein, PeterCapital Ideas: Improbable Origins of Modern Wall Street

Bernstein, WilliamThe Four Pillars of Investing: Lessons for Building a Winning Portfolio

Christensen, ClaytonInnovators Dilemma: When New Technologies Cause Failure

Collins & PorrasBuilt to Last: Successful Habits of Visionary Companies

Dreman, DavidContrarian Investment Strategies in the Next Generation

Drobny, StevenInside the House of Money: Top Hedge Fund Traders on Profiting in the Global Markets

Dubil, RobertAn Arbitrage Guide to Financial Markets

Ellis, CharlesWinning the Losers Game: Timeless Strategies for Successful Investing

Einhorn, DavidFooling Some of the People All the Time: A Long Short Story

Fabozzin & AsnessShort Selling: Strategies, Risks and Rewards

Fisher, PhilipCommon Stock and Uncommon Profits and Other Writings

Foster & KaplanCreative Destruction: Why Built to Last Underperforms the Market

Graham, BenjaminThe Intelligent Investor: The Definitive Book of Value Investing

Greenblatt, JoelYou Can Be a Stock Market Genius: Uncover the Secret Hiding Places

Greenwald, BruceValue Investing: From Graham to Buffet and Beyond

LHabitant, Francois-SergeHedge Funds: Myths and Limits

Moe, MichaelFinding the Next Starbucks: How to Identify in the Hot Stocks of Tomorrow

Nicholas, JosephMarket-Neutral Investing: Long/Short Hedge Fund Strategies

ONeill, WilliamHow to Make Money Selling Stocks Short

Rogers, JimA Bull in China: Investing Profitably in the Worlds Greatest Market

Rogers, JimHot Commodities: How Anyone Can Invest Profitably in the Worlds Best Market

Schilit, HowardFinancial Shenanigans: How to Detect Accounting Gimmicks

Stefanini, FilippoInvestment Strategies of Hedge Funds

Bernstein, PeterAgainst the Gods: The Remarkable Story of Risk

Bogle, JohnJohn Bogle On Investing: The First 50 Years

Brooks, JohnGo-Go Years: Drama and Crashing Finale of Wall Streets Bullish 60s

Bruner, RobertThe Panic of 1907: Lessons Learned from the Markets Perfect Storm

Burton, KatherineHedge Hunters: Hedge Fund Masters on the Rewards, the Risk, and the Reckoning

Byrne, JohnChainsaw: The Notorious Career of Al Dunlap

Chancellor, EdwardDevil Take the Hindmost: A History of Financial Speculation

Cunningham, LawrenceThe Essays of Warren Buffet: Lessons for Corporate America

Ellis & VertinClassic II: Another Investors Anthology

Homer, SidneyA History of Interest Rates, 4th Edition

Lefevre, EdwinReminiscences of a Stock Operator

Lowe, JanetDamn Right Behind the Scenes with Berkshire Billionaire Charlie Munger

Lowenstein, RogerBuffet: The Making of an American Capitalist

Mehrling, PerryFisher Black and the Revolutionary Idea of Finance

Middleton, TimothyThe Bond King: Investment Secrets from PIMCOs Bill Gross

Schwager, JackMarket Wizards: Interviews with Top Traders

Schwager, JackThe New Market Wizards: Conversations with Americas Top Traders

Soros, GeorgeSoros on Soros: Staying Ahead of the Curve

Steinhardt, MichaelNo Bull: My Life In and Out of Markets

Strachman, DanielJulian Robertson: A Tiger in the Land of Bulls and Bears

Cialdini, RobertInfluence: The Psychology of Persuasion

Gilovich & BelskyWhy Smart People Make Big Money Mistakes

Klarman, SethMargin of Safety: Risk-Averse Investing Strategies for the Thoughtful Investor

Plous, ScottThe Psychology and Judgment of Decision Making

Pring, MartinInvestment Psychology Explained: Classic Strategies to Beat the Market

Russo, J. DecisionTraps: 10 Barriers to Brilliant Decision Making

Tobias & McKayExtraordinary Popular Delusions and the Madness of Crowds

Whitman, MartinThe Aggressive Conservative Investor

Wilson, TimStranger To Ourselves: The Adaptive Unconscious

Wright, RobertThe Moral Animal: Why We Are the Way We Are

Baumohl, BenjaminThe Secrets of Economic Indicators: Hidden Clues to Future Economic Trends and Investment Opportunities

Graham, BenjaminThe Interpretation of Financial Statements

Schumpeter, JosephCapitalism, Socialism, and Democracy