Many emerging finance professionals are intrigued by the often-glamourized hedge fund profession. In reality, becoming a hedge fund manager is an extensive process building the advanced skills and industry knowledge needed for success. Learn more about the skill set that every aspiring hedge fund manager needs to develop for this demanding profession.
Formal Education
Ideally, a hedge fund manager has advanced quantitative skills alongside business acumen. Many hedge fund managers complete their Bachelor’s degree in Finance, Computer Science, Economics, or Mathematics and then complete an MBA or other graduate degree to further their education. A business school environment is also a wonderful place to develop networking, business planning, or financial analysis skills.
Work Experience
In addition to a classroom education, it is crucial to have hands-on experience with investment banking or wealth management early in your finance career to best prepare for the grueling hedge fund space. Pursue internships throughout your undergraduate and graduate school programs and consider taking a relevant associate position in the investment world
The more technical knowledge and skills you can develop, the more valuable you will be as an entry-level financial analyst which will open more fund management doors later.
Finance Certifications
On the path to becoming a hedge fund manager, it can be helpful to earn relevant certifications such as the Registered Investment Advisor (RIA) or Chartered Financial Analyst (CFA). Obtaining this detailed industry knowledge demonstrates your commitment to the field and furthers your understanding of the complex regulatory environment.
Skills to Become a Hedge Fund Manager
The role of the hedge fund manager requires a diverse set of skills and abilities to thrive in this demand position. Recommended skills to become a hedge fund manager include:
- Quantitative investment analysis
- An detailed understanding of regulatory compliance
- Entrepreneurial drive to start a hedge fund
- Business planning
- Fund marketing and investor networking abilities
- Practical investment management skills
Entry-Level Hedge Fund Job Titles
On your way to becoming a fund manager, your first finance roles equip you for your future in wealth management. A hedge fund manager is a complex role that cannot realistically be a first job; entry-level roles in investment management or financial analysis will prove to be valuable in the future.
- Investment Banking Analyst
- Fund Operations Associate
- Retail Trader
- Quantitative Analyst
- Enterprise Risk Management Associate
- Investor Relations Associate
- Financial Data Analyst
In addition to searching for specific job titles, seek out companies that operate in the hedge fund space including large banks, fund administration software companies, wealth management firms or certain law firms.
The path to becoming a hedge fund manager can be a long one. Many people land in equally exciting finance positions that may not have the prestige associated with hedge funds. Build up your skill set to have the best chance at landing your dream position as a hedge fund manager one day.
