Career Definition of a Hedge Fund Manager
Hedge fund managers are responsible for assisting individuals with managing their hedge fund investments, including investment objectives, fee structures, and liquidity provisions. Hedge fund managers typically work full-time for financial and investment companies, such as investment banking and private equity firms. Much of their time is spent in an office environment or traveling to meet with clients.
A hedge fund manager's primary function is to oversee all of the long-term and short-term investments that are contained within a client's overall hedge fund. Job responsibilities include utilizing financial software programs to generate and analyze data for investments, reconciling account balances each day, and reviewing expenses and accruals on accounts. Hedge fund managers often collaborate with fund services managers to ensure streamlined account management. They may oversee personnel, such as fund accountants, and design and implement training activities. Hedge fund managers may also be responsible for daily and monthly reconciling of investment values.
|Educational Requirements||Bachelor's degree|
|Job Skills||Strong critical thinking skills, management abilities, excellent communication skills, and accounting abilities|
|Median Salary (2016)*||$104,970 (investment fund managers)|
|Job Outlook (2014-2024)*||2% -4% (investment fund managers)|
Source: *U.S. Bureau of Labor Statistics
Individuals will need a bachelor's degree in accounting or finance, with some positions requiring a master's degree. Some employers may prefer candidates to be a certified public accountant, which involves passing a national exam and meeting state requirements, such as 150 hours of undergraduate coursework. Interested individuals can pursue membership in the Hedge Fund Association, a trade and lobbying organization focused on promoting transparency and trust in alternative investments.
Strong critical thinking skills are essential for a hedge fund manager, as they must have the ability to analyze market trends and investment data to ensure clients' portfolios are successful. Hedge fund managers should have excellent communication skills since they are in customer-facing roles and need to establish strong relationships with clients. The ability to manage clients' portfolios is essential in ensuring success for not just clients, but also the hedge fund manager. These managers will need a strong background in accounting principles.
Career Outlook and Salary
The U.S. Bureau of Labor Statistics (BLS) does not collect information on hedge fund managers; however, they reported a 2% - 4% growth for the category of investment fund managers during 2014-2024, which is slower than average for all occupations. Individuals with relevant work experience in investment banking and private equities may have the best job prospects. The BLS reported a 2016 median annual salary of $104,970 for investment fund managers.
Individuals considering a career as a hedge fund manager might also be interested in one of the related careers profiled below. They offer candidates the opportunity to utilize their skills to assist individual and corporate clients with financial management.