High School
You’ll need to earn stellar grades in high school in order to be accepted to a top-tier college—the starting point for the majority of hedge fund managers. In high school, take classes in economics, business, finance, accounting, statistics, computer science, English, speech, psychology, foreign language, and social studies.
Postsecondary Education
Hedge fund managers often have a master’s degree or even a Ph.D. in finance, mathematics, economics, financial engineering, quantitative finance, programming, marketing, or business administration. Others have advanced degrees in a specialty such as engineering or accounting.
According to an eFinancialCareers.com analysis of its curriculum vita database, the following U.S. colleges are the most popular for hedge fund professionals: Columbia University, New York University, University of Pennsylvania, Cornell University, University of California, Harvard University, University of Chicago, Carnegie Mellon University, University of Michigan, Princeton University, and Yale University.
Certification
Hedge fund managers, especially those at small firms that don’t have a large support staff, might choose to earn certificates in compliance, investor relations, and risk management to diversify their skill sets. These certificates are offered by colleges and universities and professional associations. For example,Seneca College offers a certificate in investor relations. The University of California-Irvine and the Institute of Risk Management provide certificates in risk management. And the University of South Florida offers undergraduate and graduate certificates in compliance.
The Chartered Alternative Investment Analyst Associationoffers the Fundamentals of Alternative Investments Certificate Program. In this online, self-paced course, you’ll learn about traditional vs. alternative investments, hedge funds, investment returns and risks, due diligence, risk management, and other topics. Visit https://caia.org/programs/fundamentalsfor more information.
Other Education or Training
Many associations provide professional development opportunities to hedge fund professionals that focus on investment strategies, accounting and auditing practices, compliance and regulatory issues, risk management practices, and U.S. and international financial markets. These organizations include the New York Alternative Investment Roundtable, CFA Institute, International Association for Quantitative Finance,Investments and Wealth Institute, and CFA Society New York.
FAQs
Advanced knowledge of the financial markets, extensive experience in portfolio management, and asset allocation expertise is also extremely important. Other key traits include creativity and imagination, strong organizational skills, attentiveness to detail, confidence, and leadership ability.
Is it hard to get hired by a hedge fund? ›
Hedge funds employ some of the best-paid business professionals anywhere, but landing your first job in the industry is no cakewalk. Building a hedge fund career takes determination, networking stamina, and a fierce competitive streak. Here are some steps to help get you to that interview and then land that job.
Why are hedge fund managers so rich? ›
Hedge fund managers typically earn above-average compensation, often from a two-and-twenty fee structure. Hedge fund managers typically specialize in a particular investment strategy that they then use to power their fund portfolio's mandate for profits.
Who are the richest hedge fund managers? ›
Who Is the Richest Hedge Fund Manager? Ken Griffin of Citadel is both the richest hedge fund manager and the highest paid. In 2022, he earned $41. billion, and by the beginning of 2023 his net worth was estimated at $35 billion.
Can a CFA become a hedge fund manager? ›
Fund managers may need to acquire additional FINRA licensing depending on the size of the fund and type of assets invested in. Additionally, professional and educational credentials, such as a CFA charter or graduate degree in a relevant field, will come in handy.
Do hedge fund managers need a Series 7? ›
Does a manager need a Series 7 license to manage a Hedge Fund? No. A Series 7 exam license is not required to manage a hedge fund. However, if the hedge fund, or an affiliate, is registered as a broker-dealer, the manager may need the Series 7 depending on his duties with the fund or affiliate.
What is the minimum salary for a hedge fund? ›
$33,500 is the 25th percentile. Salaries below this are outliers. $44,500 is the 75th percentile.
Do hedge fund jobs pay well? ›
Many people are drawn to the hedge fund career path because of the money: even junior-level employees can earn $500K up to $1 million, and senior-level Portfolio Managers can go well beyond that.
Can you make millions working at a hedge fund? ›
The money is a big draw as well: if you're at the right fund and you perform well, you can earn into the mid-six-figures, up to $1 million+, even as a junior-level employee. The top individual Portfolio Managers can earn hundreds of millions or billions each year.
Is it risky to be a hedge fund manager? ›
However, because hedge funds are typically much higher-risk portfolios that are more actively traded, they require close monitoring and a greater amount of day-to-day hands-on management and decision-making regarding investments.
In fact, he owned and managed his own hedge fund before he took charge of Berkshire Hathaway. He introduced Buffett Partnership, an early version of hedge funds, in 1957, and it was wildly successful. In the 12 years he managed the fund, Buffett delivered compounded annual returns of 31.6 percent before fees.
How many hours do hedge fund managers work? ›
At smaller, single-manager funds, the average might be 10-12 hours per day, for a total of 50-60 hours per week (weekend work is rare). As you move to larger, multi-manager funds, the hours and stress get worse, so the average may be more like 60-70 hours per week.
Who is the smartest hedge fund manager ever? ›
Due to the long-term aggregate investment returns of Renaissance and its Medallion Fund, Simons was described as the "greatest investor on Wall Street," and more specifically "the most successful hedge fund manager of all time".
What degree do most hedge fund managers have? ›
What education is required to become a hedge fund manager? Many hedge fund employers require employees to receive a bachelor's degree in finance or a related specialty like accounting or economics. Some hiring managers may require a master's in business administration as well.
How old is the average hedge fund manager? ›
They found that the median age of a hedge fund manager is 48. The majority of hedge fund managers are between 40 and 60 years of age.
Do you need an MBA to be a hedge fund manager? ›
The qualifications that a hedge fund manager needs
Usually those with an Ivy League background score better jobs in hedge funds and therefore most managers have an elite education and in addition several certificates required for their job. Some even prefer to earn MBAs that deal with managing funds and assets.
How much do most hedge fund managers make? ›
The money is a big draw as well: if you're at the right fund and you perform well, you can earn into the mid-six-figures, up to $1 million+, even as a junior-level employee. The top individual Portfolio Managers can earn hundreds of millions or billions each year.
What certifications do I need to start a hedge fund? ›
Hedge Fund Certifications
- Registered Investment Advisor (RIA) ...
- Certificate in Hedge Fund Regulation (CHFR) ...
- Chartered Financial Analyst (CFA) ...
- Chartered Investment Counselor (CIC) ...
- Chartered Alternative Investment Analyst (CAIA) ...
- Certified Investment Management Analyst (CIMA) ...
- Certified Private Wealth Advisor (CPWA)
