Hedge Fund Manager How To Become

If you’re interested in becoming a hedge fund manager, you’ll need to start by learning about the industry and what it takes to be successful. You can research the different types of funds available, as well as the history of the industry and its players. Once you have a good idea of what you’re getting into, you should start looking for opportunities to gain experience with hedge funds. This might involve internships or part-time gigs with fund managers who are willing to take on new employees.

When it comes time to apply for jobs at hedge funds, you’ll need to make sure that your resume is up-to-date and reflects all of your past jobs and experiences. You should also make sure that any references listed on your resume are ready to speak favorably about you if necessary (this includes fellow employees). Finally, make sure that your cover letter is polished and professional—it’s one of the first things hiring managers will see when reviewing applications!

Hedge Fund Manager How To Become

Average salary

The typical expected salary for a hedge fund manager depends on many factors, including the number of investors, the compensation agreement, the value of investments and the size of the funding firm in which they work. In some investment firms, hedge fund managers may have control over the amount they earn. They may be responsible for recruiting and adding new investors to the hedge fund, which can result in higher compensation.

• Common salary in the U.S.: $64,772 per year
• Some salaries range from $14,000 to $176,000 per year.

Hedge fund requirements

Becoming a hedge fund manager requires completion of certain educational and training requirements, which include:

Education

Hedge fund managers typically have a minimum of a bachelor’s degree, although many companies prefer a master’s degree. Hedge fund managers may have a degree in accounting, finance, economics or business administration. Students use their education to develop important analytical skills and to learn more about finances, hedge funds and stock investments. 

Many students also complete an internship with a financial firm. During an internship, a student gains hands-on experience in the field while making valuable connections with experienced professionals. Some master’s programs require students to undergo an internship to graduate.

Training

Many hedge fund managers begin in an entry-level position in finance then work toward a career in managing hedge funds. Previous experience in careers like personal finance or financial analysis can prepare candidates for a career as a hedge fund manager. Some training in a management role can be useful as well. Some hedge fund managers begin with an entry-level position as a trader, analyst, risk manager or junior manager.

Certifications

Obtaining certifications is not usually a requirement to become a hedge fund manager, but they can make you a more competitive candidate when applying for positions. The following certifications are available as a hedge fund manager:

Registered Investment Advisor (RIA)

The RIA is an ideal certification for financial investors who manage funds with a high value. To obtain the RIA certification, you need to complete the Series 7, 65 or 66 certification exams in the North American Securities Administrators Association program. The Financial Industry Regulatory Authority administers all of the exams. 

Chartered Financial Analyst (CFA)

Aspiring hedge fund managers may work toward the CFA certification if they hold at least a bachelor’s degree, four years of related work experience and successfully pass three financial exams.

Certificate in Hedge Fund Regulation (CHFR)

The CHRF is a good certification for hedge fund managers as it identifies the candidate’s knowledge of hedge fund federal regulations. Interested candidates must complete an online course then pass the exam.

Certified Treasury Professional (CTP)

Awarded by the Association for Financial Professionals, The CTP certification is ideal for investors who work in the treasury industry. This certification requires a minimum of two years of work experience and the completion of an exam.

Skills

Successful hedge fund managers often have certain hard and soft skills that will assist them when working with clients and managing high-value funds. Some of the most important skills a hedge manager should possess include:

Analytical thinking

Analytical skills are crucial as a hedge fund manager since they make important decisions that affect the finances of all investors. The ability to gather and analyze large amounts of financial data allows them to create and execute a series of plans. 

Communication

Hedge fund managers need to use advanced communication skills, such as persuasion and negotiation, when growing their fund investor group. Written communication skills are also important, as fund managers often correspond with other team members and investors via email.

Attention to detail

Hedge fund managers often analyze information or create detailed reports to identify results. Being detail-orientated will ensure that these important documents are accurate.

Mathematics

The ability to calculate percentages, deductions and taxes quickly, while still being accurate, is essential. Strong mathematical skills will also assist with analyzing and creating reports.

Hedge fund manager work environment

Hedge fund managers can expect a busy and varied workday in most settings. They may spend some days encouraging new investors to join the hedge fund and other days reporting numbers to current investors. Hedge fund managers spend a significant amount of time analyzing trends and determining investment strategies. They may work with a team of other hedge fund managers, or they may be responsible for their hedge fund. A hedge fund manager can expect the following work characteristics:

• Long workweeks, often extending beyond 40 hours 
• Frequent meetings with executives and hedge fund investors
• Close monitoring of stock markets
• Regular communication with investors and other financial professionals
• Continual use of analytical software and computer programs

How to become a hedge fund manager

Certain educational and training requirements will assist you in becoming a hedge fund manager, which include:

1. Complete a bachelor’s degree

Most financial firms require at minimum a Bachelor’s Degree in Accounting, Business Administration or Finance. Relevant coursework in math and statistics can help you prepare for a master’s program.

2. Earn a master’s degree

Although not required, you can choose to earn a master’s degree to expand your job opportunities. Consider relevant fields like finance or business administration. Take advantage of any internship opportunities that will allow you to gain experience or network with financial professionals. 

3. Obtain certifications

You may choose to earn certifications to make you a more competitive candidate. Research potential certifications, understand their requirements and take the necessary courses or exams to earn them. Some certifications may require that you renew them every few years, so research recertification qualifications as well. 

4. Apply for entry-level positions

Many hedge fund managers begin in entry-level positions, either as personal investors or traders. Use this experience to develop your management skills and take advantage of any work opportunities to demonstrate your ability to manage a hedge fund.

5. Apply for hedge fund manager positions

Once you complete all educational and experience requirements, you can apply for open hedge fund manager positions. Use your cover letter and resume to highlight your most important experience and skills as they relate to the position.

Hedge fund manager description example

Established financial investment firm is seeking to fill an open hedge fund manager position. The ideal candidate will have a master’s degree in a relevant field with previous experience in management. Certifications in RIA and CFA or a willingness to work toward them during employment is a requirement. In this position, the candidate can expect to work closely with high-value clients, so strong communication and financial skills are crucial. Inside sales skills are also beneficial, as the job will include adding additional investors to the fund.