How much do hedge fund accountants make in the US?
How much does a Hedge Fund Accountant make? As of Apr 16, 2024, the average annual pay for a Hedge Fund Accountant in the United States is $77,940 a year. Just in case you need a simple salary calculator, that works out to be approximately $37.47 an hour. This is the equivalent of $1,498/week or $6,495/month.
As of Apr 12, 2024, the average annual pay for a Hedge Fund Accountant in New York is $78,118 a year.
| Job Title | Annual Salary | Monthly Pay |
|---|---|---|
| Hedge Fund Attorney | $175,207 | $14,600 |
| Cfo Hedge Fund | $157,532 | $13,127 |
| Private Equity Fund Controller | $154,999 | $12,916 |
| Hedge Fund General Counsel | $151,643 | $12,636 |
Earn a Master's Degree or Graduate Certificate: A bachelor's degree, along with several years of professional experience in fund investment, often suffice to land a job as a hedge fund accountant. However, many employers prefer hedge fund accountants who hold certified public accountant (CPA) credentials.
| Annual Salary | Weekly Pay | |
|---|---|---|
| Top Earners | $116,000 | $2,230 |
| 75th Percentile | $99,000 | $1,903 |
| Average | $86,141 | $1,656 |
| 25th Percentile | $66,500 | $1,278 |
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.
| Job Title | Average Annual Salary |
|---|---|
| Treasurer | $199,750 |
| Vice President of Finance | $192,750 |
| Corporate Controller | $188,250 |
| Finance Director | $185,330 |
Why Do Hedge Fund Managers Earn So Much? Hedge fund managers' earnings are usually based on management fees and a percentage of the profits they earn, known as a performance fee. The more assets they have under management, and the higher the profits they earn for their fund, the more income they make.
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.
- #1. Ken Griffin. Net worth: $35 billion. ...
- #2. Jim Simons. Net worth: $28.1 billion. ...
- #3. Ray Dalio. Net worth: $19.1 billion. ...
- #4. David Tepper. Net worth: $18.5 billion. ...
- #5. Steve Cohen. ...
- #6. Carl Icahn. ...
- #7. Michael Platt. ...
- #8. Israel Englander.
Is hedge fund accounting a good career?
Yes. Some accountants begin in entry-level hedge fund accounting positions before pursuing master's degrees in accounting or business administration. Such advanced degrees can lead to management roles that require technical knowledge of financial analysis and investment strategies.
- Bachelor's degree in Accounting, Finance, or related field.
- 5+ years of experience in fund accounting preferred.
- Knowledge of GAAP and relevant laws and regulations.
- Proficient in Quickbooks and Excel.
- Excellent analytical and problem-solving skills.
The hedged risk must result in exposure to a change in fair values or cash flows that could affect reported earnings, which is a requirement for all hedge accounting relationships.
The average base salary for a fund accountant in the US falls between $55,000 to $85,000 annually. Total compensation can reach up to $100,000 with bonuses and profit sharing.
A fund accountant requires strong quantitative skills to effectively analyse, interpret and review complex financial data and execute complex calculations. This also involves a deep understanding of financial concepts and investment strategies.
These professionals can determine a fund's investment potential by monitoring and analyzing its transactions. Fund accountants' other responsibilities include collecting tax compliance data, paying fund fees, and preparing financial statements. A fund accountant can also perform other tasks, including: Track cash flow.
Reality: High Stress and Potentially Constant Long Work Hours. Depending on the type of fund, you could work long hours especially when you are just starting. There is a reason why people say at hedge funds your first 6 months is like “drinking from a fire hose.” The role is unlike investment banking or private equity.
The work hours for hedge fund traders can vary, and the industry is known for its demanding schedule. On average, hedge fund traders often work long hours, ranging from 50 to 80 hours per week. The specific workload can depend on the fund's strategy, market conditions, and individual firm policies.
BlackRock manages US$38bn across a broad range of hedge fund strategies. With over 20 years of proven experience, the depth and breadth of our platform has evolved into a comprehensive toolkit of 30+ strategies.
Only a small fraction of CPAs make $500k a year, but it is possible. And it is faster to achieve in your own firm than by working for a large public accounting firm or getting a corporate job in the industry. To make big money in a solo practice or a small firm, your strategy will differ greatly from the big firms.
Can CPAs make 7 figures?
Most CPAs must earn a bachelor's degree or even a master's degree to move up the corporate ladder. Experienced CPAs can earn in the mid- to high six figures, especially if they end up in a management or leadership position.
Median Accountant and Auditor Salary
According to the Bureau of Labor Statistics, the median annual accountant's salary in the U.S. as of March 2024 (the most recent data available) was $78,000. The lowest 10% of accountants earned less than $44,480, and the highest 10% earned more than $124,450.
The median manager earned $570 million — the fourth best in 22 years — and the seven highest earners all made at least $1 billion. The top earner was Ken Griffin, founder of multistrategy giant Citadel. He personally made $4.1 billion — the most any hedge fund manager has ever earned in the history of the Rich List.
Work days do tend to follow somewhat of a routine, with market open and close being the most critical. In addition to trading, hedge fund managers must also make sure all of their positions are in order, their models up-to-date, and their business/social lives active to keep investors and brokers happy.
Hedge funds are the ultimate asset class for ultra wealthy investors. Catering to the needs of high- and ultra-high net worth individuals, worldwide hedge funds manage more than $4 trillion in assets.
