Who do hedge funds hire?
The majority of hedge fund managers hire people straight out of banking or after two years at a private equity firm. Those who are from good middle market or mega fund private equity firms are in the best position to transition to a good hedge fund.
Why Work at a Hedge Fund? Hedge funds are good if you're extremely passionate about the public markets, and you want to follow companies and other securities rather than work on deals. “Extremely passionate” means: You're constantly reading about the financial markets in books and other media.
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.
If you want to work in the hedge fund industry, prime candidates will come with a variety of useful skills and experience. Education is key, especially knowledge about markets and different types of assets and investments. Subjective and interpersonal skills are also key in addition to quantitative ability.
Broad job categories in hedge fund firms include investing, trading, risk management, marketing, accounting, legal and compliance, and general support (for example IT, human resources, and administration).
A Bachelor of Science (B.S.) degree in finance is ideal for a variety of hedge fund jobs, but your major will matter. Bachelor of Science degrees in mathematics, accounting, physics, computer science, and even engineering are also useful, given the recent rise in algorithmic trading.
It's hard to say. Hedge funds hire overwhelmingly from banks sales and trading schemes, and few run their own graduate training schemes for people just leaving university. However, hedge fund graduate jobs and internships do exist (you're about to get a list of them), but expect them to be ferociously competitive.
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.
“We don't have a dress code,” the fund notes on its career page. “Folks come to work in anything from a suit to jeans and a t-shirt – the same goes for you. We recommend wearing what you feel is appropriate and comfortable.”
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.
How smart do you have to be to work at a hedge fund?
Hedge funds use multiple financial strategies and extensive research to help investors. Working for a hedge fund is a great choice for individuals with mathematical and analytical skills, and it can be a lucrative career path.
A record of academic achievement will clearly help, but on its own it may not be enough. Mitro said Citadel and Citadel Securities' hires include NASA researchers and people who've won math competitions. The firm is unapologetically selective, and if you get a job there, the culture is unashamedly meritocratic.
Hedge fund portfolio managers and analysts
“I'm right and I'm all over the details”… D & C personalities dominate hedge funds. Is are wonderful idea generators, but often get shaken out over the life of an investment as the market moves. S types tend to get runover in the hedge fund world.
Grades can be an important factor in getting into the hedge fund industry and investment banks, but they are not the only factor that is considered.
While working in equity research or in investment banking is typically the clearest path to working at a hedge fund, it is not impossible to start working at a hedge fund right after undergrad.
The easiest path to landing a job at any type of hedge fund is to work in banking for the first two years out of undergrad. During those years, make sure you develop a good reputation and try to be a top bucket analyst. You need to be very good at excel and have a strong grasp on valuation / modeling.
It's fair to say that portfolio management is not a young person's game and is dominated by veterans, most of whom are men. To that point, of the 15,000 portfolio managers tracked by Citywire, the average age is 49 and 89 percent are men.
| 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 |
The top-ranked undergraduate programs for getting an investment-management job at a hedge fund, mutual fund or private equity fund include the usual suspects. Coming in first is the University of Pennsylvania, followed by Harvard University, Stanford University, Cornell University and Princeton University.
The top school for American hedge funds was Harvard University, followed by Penn and Chicago. For U.S. equities, Penn was first, followed by Chicago and Harvard. In U.S. fixed income, Penn was again number one, followed by Chicago and New York University.
What is the best college for hedge funds?
University of Pennsylvania
Wharton isn't just a private equity powerhouse – they're quite likely the best school for any buyside job, including hedge funds and possibly venture capital.
Overall, the consensus is that hedge funds will continue to grow but will adapt to lower fees, greater use of technology, and increased access to retail investors.
Hedge funds are often marketed by the fund manager who networks with friends or business acquaintances or through third-party placement agents, who are individuals or firms that act as intermediaries for asset managers such as pension fund managers or investment managers for a foundation or endowment.
Since HR is not typically a core competency within most new fund managers, many consider outsourcing certain functions to PEOs, which provide many human resources-related functions, including employment administration, benefits management, retirement services and payroll services.
Hedge funds are widely regarded as offering significant earning potential. Junior level employees are able to achieve salaries upwards of $500k in some places, and the best fund managers can see their net worth ultimately reach nine or even ten figures.
