A hedge fund manager is a highly trained individual who monitors and oversees a variety of investments in a hedge fund. This career can be very rewarding because of its potential to offer lucrative salaries as well as a great work environment. Hedge fund managers often have a clear investment strategy, sales and marketing plan, risk management strategy and adequate capitalization.
Key Responsibilities
One of the major roles of hedge fund managers is to find investors who are willing to pool their money together in a hedge fund. Once they manage to convince enough investors, hedge fund managers create an investment plan using the money pooled together. In order to make a viable investment plan, they conduct a lot of market research to determine the current business environment and lucrative investment options. They also network with companies and analyze trends through the stock market and media.
Necessary Skills
Working as a hedge fund manager is not easy if you don’t possess essential skills and tricks. You require an in-depth knowledge of financial tools and strategies. If you don’t have knowledge of the financial tools and strategies, you will have a difficult time understanding product combinations and factors affecting prices and performances. Apart from in-depth knowledge of financial tools and strategies, you require quantitative expertise to analyze the possibilities of a particular investment generating the desired numbers.
You must be able to question underlying assumptions, analyze existing figures and perform scenario analyses. You must also be able to understand different risks in the financial market, have an eye for detail and be able to analyze risks. Other essential traits include teamwork, risk taking abilities and communication skills.
How to Become a Hedge Fund Manager
Aspiring hedge fund managers must first obtain a minimum of a bachelor’s degree. Employers require candidates who have degrees in economics, accounting and finance. Others prefer individuals who have bachelor’s degrees in business administration with a concentration in finance. These degrees feature business classes that offer courses in tax and accounting principles.
Due to the highly complex and specialized nature of hedge funds, a majority companies prefer candidates who have graduate degrees over those with bachelor’s degrees. Graduate degrees such as Master of Business Administration (MBA) with a concentration in finance exposes students to both managerial and operational aspects of hedge funds. Master’s degrees in economics and statistics can also create a strong foundation for aspiring hedge fund managers.
Some individuals choose to obtain certifications in order to increase their job prospects and earning potential. The most popular certifications for hedge fund managers include Registered Investment Advisor, Certificate in Hedge Fund Regulation, and Chartered Financial Analyst. Employers recognize these certifications as standards of professional practice and knowledge.
Salary
Hedge fund managers belong to a special category of financial managers. According to the Bureau of Labor and Statistics, financial managers earn a mean annual wage of $121,750. The employment rate is expected to increase by 19 percent over the next 10 years. The factors that will influence this demand include increased economic activities in the country and an influx in the number of people investing in securities.
Related Resource: What is a Business Analytics Analyst?
Hedge fund continues to be one of the most productive fields, generating billions of dollars every day. As a hedge fund manager, you will be expected to play a critical role in identifying potential investments and ensuring the hedge fund gets good returns.
