Hedge Fund Manager Job Description

Hedge fund managers oversee their clients' investment portfolio and monitor the domestic and global stock markets to look for investment opportunities. The job is of great responsibility, and therefore, hedge fund managers are paid high wages...

In the latter half of the 20th century, managers used a strategy known as 'hedging' to counteract high risk investment. They made several trades to help the investment portfolio of their clients, which ultimately came to be known as the hedge fund.

Private investors with a large fortune, insurance companies, and financial institutions hire hedge fund managers to manage their investments. The job involves undertaking a wide range of trading activities. People with a good understanding of the financial markets and global economy will do good in this profession.

Hedge fund managers invest private funds in different assets in order to safeguard the investment against stock market fluctuations. Hedge fund managers also employ different strategies, after consultation with their clients, to diversify the investment. One of their key responsibility is to protect the client's investment against downswings in the stock markets. Maximizing the returns when the markets are showing an upward graph is also part of their responsibilities.

Tracking the stock market and spotting opportunities to maximize returns on client's investment is the mainstay of their job. They undertake short term stock trading to correct any risks on the client's portfolio. Hedge fund managers deal in equities and commodities to balance the investment portfolio to protect it against market risks. They will also trade in bonds, making these investments stand apart from the traditional long-lay investment funds.

They attend and call for client meeting either with individual clients or with companies to discuss investment strategies. In these meetings, they discuss complex financial concepts and explain their strategies, aimed at giving high returns on investment. Building effective relationship with clients is an important aspect of the job. They also call for meetings with financial analysts and traders to advise them on investment strategies.

Hedge fund managers calculate the net asset value (NAV) of the client's funds on a regular basis, and check the profit and loss ratio. They also have to undertake extensive research to enhance the investment portfolio characteristics. Deciphering large quantities of statistical data to analyze performance is also a part of their job. Generating reports for asset managers and working directly with traders to make better investment decisions is another duty of the hedge fund manager.

Creating monthly and quarterly reports to appraise the clients and management about the investment is a part of this job profile. In some firms, they coordinate in audit planning and presenting the scope of investment to the management. Hiring personnel and overseeing the functioning of the accounting department is also a part of the hedge fund manager job profile.

In this profession, experience is given more importance than education; individuals with a degree in finance related subjects with related experience will be hired by organizations. Candidates who have an MBA degree with work experience stand a better chance. People who have good analytical and advanced mathematical skills will be preferred by employers. Individuals who have experience in private equity, investment banking, accounting, etc., have a better scope of getting this position.

The hedge fund manager salary figures are known to cross the billion dollar mark in some cases. However, these pay packets are mostly performance based and only for the consistent performer. The median annual wages of a hedge fund manager are around $103,303. Hedge fund managers earn large bonuses, which makes this a very lucrative profession.

People who have attention to detail and are comfortable using finance related software can opt for this profession. If you are planning on becoming a hedge fund manager it is advisable that you get experience in fields like banking and accountancy, as most organizations will hire candidates with experience.