How to Become Hedge Fund Manager?
Hedge Fund Manager is a very lucrative job position of the current times and is likely to grow in the coming years as well. It is a great career opportunity and if you are interested in pursuing it, you will need to know who a hedge fund manager is? You will also need guidance on how to become hedge fund manager. There are a few other basics you should know before that.
What Is a Hedge Fund?
Hedge funds are investments, which make use of funds pooled from the investors. These funds are then combined with different strategies in order to get positive returns while reducing the risk for the investors. The aim of a hedge fund is to do so in spite of the market conditions at any point in time.
While the hedge funds can be invested in anything, including land, stocks derivatives and currencies, the investors have to meet requirements with respect to their new worth. They pay not only an expense ratio but also a performance fee.
Who Is a Hedge Fund Manager?
A hedge fund manager is essentially someone who is capable of analysing the financial markets and takes on the responsibility for planning and strategizing investments for his clients. The investments he handles are typically large and have to be managed in such a way that the returns are maximised. He needs to choose the investments and monitor each of them. He also is responsible for researching the investment opportunities and presenting them to the clientele as well as drafting and implementation of investment policies.
Qualifications to Become a Hedge Fund Manager
A hedge fund manager should be a graduate and above along with experience in financial analysis. A degree in finance or related streams is a good option for aspirants. Additional credits in statistics and advance mathematics are advised.
A post graduate course in finance management along with courses covering asset management, hedge funds, bond valuation and options pricing works well in preparation for a better career.
What Should a Hedge Fund Manager Know?
Apart from expertise in finance related subjects such as economics and accountancy, they should have knowledge of advanced mathematics, the English language, law and government regulations. The knowledge of computers, sales and marketing are an essential for any career in the present times.
A good understanding of the customer and his needs and meeting certain levels of customer satisfaction are as important for this field as the knowledge of sales and marketing principles. And above, you have to know how to run and manage the business.
What Skills Should Hedge Fund Managers Have?
Some of the essential skills for a career in hedge fund management are those related to communication, problem solving, decision making and critical thinking. Along with these, you must work on your soft skills such as work ethics, positive attitude, time management, self-confidence etc.
With these skills in place you can start working as a hedge fund manager with organisations dealing in financial investments, insurance, credit intermediation and related industries.