About Hedge Fund Careers

Hedge funds are well known to investors. Some manage to beat the major market indexes from year to year. The reason for hedge fund's popularity comes from the skills and experience possessed by the hedge fund staff. Often what decides the profitability of a particular hedge fund is directly related to the skills and experience of the fund's management staff.

Portfolio Managers

The job of portfolio managers involves making trading decisions, which often translates into profit or loss. Portfolio managers decide on the type of trading strategies used for trading purposes. Hedge funds use various strategies in trading such as Equity Neutral, Long/Short, Arbitrage, Short positions or Long positions. A portfolio manager's duties often cut into all aspects of the hedge fund operations, and he must stay on top of his trading all the time, making decisions that often means success or failure for the fund company.

Hedge Fund Administrators

Over the years, hedge funds have taken on hundreds of billions of dollars in new assets under management. The job of hedge fund administrator is necessary for the smooth functioning of the fund company. Administrators communicate with the general investors in the fund and carry out all necessary administrative functions, including reporting, compliance protocols, tax matters, and auditing. They are very skilled managers and experts in their chosen field. Many of the hedge fund administrators hold degrees in such areas as accounting, auditing, business law, and general business management.

Research Analysts

Research Analysts help hedge fund firms conduct trading research and analysis. They have considerable experience from working for major stock market financial firms. Many of today's research analysis involve systematic trading and statistical analysis. Some may employ various analytical strategies to simulate their trading scenarios, and back test these systems before using them for actual trading. Research analysts work directly with the portfolio traders and managers of the fund.

Sales and Marketing

Sales and marketing jobs see increasing demand as new hedge funds are launched. Individuals must be trained in the field of sales and marketing, since the core duties they perform will deal with the sales and distribution of hedge fund products and services, to both wealthy as well as institutional investors. Marketing and sales team endeavor to expand the membership of their funds, by finding ways to reach qualified investors. According to the Securities and Exchange Commission, hedge fund investors must meet certain income requirements before they can invest in hedge fund instruments.

Back Office Operators

Back office managers and operators handle the managerial and clerical duties of the fund. Such work is crucial for the smooth functioning. They also cover all aspects of the fund's compliance and transparency matters, making sure that all investors in the fund receive periodical updates and accounting statements.

Risk Managers

Risk managers dedicate much of their time to assessing the level of risk maintained in the fund's portfolio. Risk managers make sure that the fund maintains a balanced portfolio in line with the risk levels, which the fund tolerates. Risk managers generally work with portfolio managers. At some hedge funds, the risk manager may also hold the position of portfolio manager, depending on the level of the fund's managed assets.