How Much Do Hedge Fund Salespeople Make?
A hedge fund is similar to a mutual fund, in that it is a professionally managed group of stocks and other securities that you can buy shares in. Unlike mutual funds, hedge funds are largely unregulated and designed for more sophisticated investors, as hedge fund managers usually take a more aggressive investing approach than mutual fund managers. Hedge fund salespeople work to encourage investors to buy hedge fund shares.
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Hedge Fund Marketing Jobs
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Hedge fund marketing is similar to other financial sales professions, though the prospect base that salespeople can market to is limited. To offer hedge fund shares to a potential investor, the U.S. Securities and Exchange Commission (SEC) requires a salesperson to be accredited or specially qualified. This means that investors must have experience and investment knowledge. Most hedge fund sales are performed through direct sales methods, such as cold calling, as it is illegal for a hedge fund to openly advertise.
Third-Party Marketing
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Many hedge funds do not have their own sales staff and instead hire third-party marketing teams to sell fund shares. Third-party hedge fund marketing is a specialized consulting service that has a team of qualified sales professionals who understand hedge fund products in detail and have wealthy individuals as customers, as well as professional investment managers and brokerage houses.
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Qualifications
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Hedge fund marketing is a difficult business to break into. Most hedge funds and third-party marketers require their salespeople to have years of experience as well as a strong sales track record before they will consider hiring them. In addition, depending on the type of hedge fund products you sell and the type of firm you work for, you may be required to obtain specialized licensing from the SEC to work as a hedge fund salesperson. Licensing requirements vary significantly, so you should ask the firm you are considering working for which, if any, licenses you must have.
Salaries
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If you are hired as a hedge fund salesperson, you could make a lot of money. According to the Fins Financial website, in 2008 the median salary for a hedge fund salesperson was $287,500 if she worked for a hedge fund that had a single investment strategy and $111,000 if she worked for a firm that had several different strategies. The average pay for a marketing manager was $345,000 in 2008.
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References
- Intercontilimited: Hedge Fund Marketing -- Pros, Cons and Structuring Agreements with Third-party Marketers; Victor Zimmermann, Curtis, Mallet-Prevost, Colt & Mosle LLP, Stamford
- Third Party Marketing: Jobs at Hedge Funds
- Fins Financial: The Three Hottest Jobs in Hedge Funds and How to Get Them; Laura Lorber; October 2009
- Hedge Fund Marketing Alliance: Hedge Fund Sales and Marketing
- Photo Credit Jupiterimages/Photos.com/Getty Images
