The unfortunate truth is there are more people looking for hedge fund jobs than there are jobs available, so hedge funds have their pick of the litter. This article is intended to show you how the search process works, and what the average hedge fund resume looks like. If you want to stand out from the crowd, take notes and do something different, or risk getting lost in the crowd.
It is very rare for a hedge fund to hire someone right out of school, so the typical hedge fund applicant will have at least 2 years of experience, usually in investment banking. Hedge fund managers just want to know how much money you can make them, so they don’t want to spend time teaching the basics like accounting, modeling, or basic corporate finance. Hedge funds will also consider consultants, ex- military, and accountants. A hedge fund manager is willing to train a person that can bring a unique skill to the table. Consultants often have deep industry contacts; military personnel are very disciplined and will work many hours without questioning the chain of command; and accountants, especially forensic accountants, can identify questionable accounting practices that public companies may use.
A typical applicant will likely have education from a top tier school. That doesn’t mean you have to have a degree in business or economics. In fact, many famous hedge fund managers are students of philosophy. Certain hedge funds require an MBA or CFA. Many people get both, but getting both is really a waste of time. If you already have an MBA, it is a much better use of time to spend the same countless hours researching good investment ideas than trying to pass a memorization test like the CFA.
So if you didn’t go to a top tier school, you didn’t work for an investment bank, and you aren’t an accountant, consultant or ex -soldier, you need to think of something really creative to beef up your hedge fund resume because the sad truth is there are plenty of unemployed people who have the right background and still can’t get in. You might be surprised to learn what hidden skills you have acquired over the years are just the ticket
FAQs
Typical resume samples for Hedge Fund Analysts describe duties such as assessing investments, generating investment ideas, and networking. The ideal candidate demonstrates business acumen, research skills, financial expertise, time management, excellent communication and networking skills and computer competencies.
How to write a hedge fund resume? ›
Hedge Fund Job Search – the Big Picture
Your professional resume must: Express your professionalism, organization, and attention to detail. Be free of any spelling, grammar, or formatting errors. Create a written portrait of a hard-working, go-getter who can bring in investors and keep them happy.
What is the average return for hedge funds? ›
30 January 2024 - Hedge funds delivered double-digit returns to investors in 2023, with 80% of funds seeing positive returns. Funds achieved a weighted average return of 14.66% overall, with Equities, Fixed Income Arbitrage and Multi-Strategy funds all seeing double digit returns.
What is an average sized hedge fund? ›
Table 1: The Universe of Hedge Funds Broken down by Size
| Size | AuM | Total Number of Funds |
|---|
| Small | US$10-100m (average US$37m) | 4,654 |
| Mid-sized | US$101-500m (average US$232m) | 2,004 |
| Large | >US$500m (average US$693m) | 787 |
| Super-large | 10 largest hedge funds (average US$7,721m) | 10 |
There's no question that it matters in many industries outside of IB, such as portfolio management. If you go into this field, you'll probably complete several levels of the CFA at some point. Some equity research teams and hedge funds will also be impressed if you've passed it while working long hours.
How hard is it to get a job at a hedge fund? ›
Few recruiters will work with someone who has less than three years of experience working directly within the hedge fund industry. Many professionals use experience in other industries to segue into the world of hedge funds, but they usually don't get there through recruiters.
Is hedge fund job stressful? ›
Long and stressful days
The day for hedge fund managers is very long and full of stressful hours.
What is the 2 20 rule for hedge funds? ›
The 2 and 20 is a hedge fund compensation structure consisting of a management fee and a performance fee. 2% represents a management fee which is applied to the total assets under management. A 20% performance fee is charged on the profits that the hedge fund generates, beyond a specified minimum threshold.
What is the survival rate of hedge funds? ›
First, the hedge fund mortality rate in this sample is estimated at 8.43 per cent per year which is twice the size of those reported in mutual fund studies. We find that 59 per cent of hedge funds at the start of the sample do not survive the full sample period.
What is the average lifespan of a hedge fund? ›
As a quantitative researcher who previously worked in the hedge fund industry, Farnsworth has been studying hedge funds for quite some time. Over the years, he noticed that the average lifespan of a hedge fund is quite short – less than five years.
Hedge fund managers typically earn above-average compensation, often from a two-and-twenty fee structure. Hedge fund managers typically specialize in a particular investment strategy that they then use to power their fund portfolio's mandate for profits.
How much does a hedge fund VP make? ›
Vice President Of Hedge Funds Salary
| Annual Salary | Hourly Wage |
|---|
| Top Earners | $244,500 | $118 |
| 75th Percentile | $190,000 | $91 |
| Average | $157,532 | $76 |
| 25th Percentile | $115,000 | $55 |
The top individual Portfolio Managers can earn hundreds of millions or billions each year. Hedge funds offer a much higher pay ceiling than investment banking, (sometimes) better hours and work/life balance, and the chance to do more interesting work.
Do hedge funds require a MBA? ›
Just MBA not enough
It may be important to go to a top b-school, but work experience in a hedge fund before school is what often counts, says a Quora participant. The alternative is experience in investment banking or a private equity fund.
Is an MBA good for hedge funds? ›
MBAs might be prevalent in private equity, but hedge funds generally don't demand you go to business school - just 14% of hedge fund professionals possess an MBA. I think a candidate from a leading university with a 1st or high GPA together with a good masters degree or MBA will far outweigh anything else.
How old is the average hedge fund manager? ›
The average age of hedge fund managers is 40+ years years old, representing 71% of the hedge fund manager population.
How do I prepare for a hedge fund job? ›
When preparing for a career in a hedge fund, consider earning your bachelor's degree in math, accounting, finance, investment banking, economics or business. You can also benefit from taking courses in financial math, global investment strategy, emerging markets, psychology and consumer behavior.
How do I prepare for a hedge fund interview? ›
“Preparation” for hedge fund interviews means coming up with 2-3 solid investment pitches, working on spinning your pitches into sounding like deals and then taking a strong view of each one, and making sure you can explain your market views coherently.
Do you need a CFA to run a hedge fund? ›
Fund managers may need to acquire additional FINRA licensing depending on the size of the fund and type of assets invested in. Additionally, professional and educational credentials, such as a CFA charter or graduate degree in a relevant field, will come in handy.
What do hedge funds look for in candidates? ›
The skills that hedge funds look for in job candidates can be divided into two basic categories—knowledge-based skills (gained through education, self-study, and work experience) and personal skills in areas like communication, teamwork, and risk-taking.
