Hedge Fund Risk Manager Jobs

Risk management positions are hedge fund jobs associated with assigning objective numerical values to probabilities of negative financial events. A risk manager in a hedge fund job is responsible for calculating the risk associated with currently held portfolios in order to recommend changes, or assessing the risk on a potential investment to help the portfolio manager decide if the potential gain is worth the associated possible loss.

Risk management requires a strong preparation in business, accounting, and statistics, and advanced business degrees from recognized colleges or universities are a competitive advantage to individuals seeking these hedge fund jobs. Qualified risk managers in hedge fund jobs can expect a starting salary around $50,000, although salaries may be higher with larger or more successful funds. Risk managers will likely earn hundreds of thousands to millions of dollars over the course of a career.

Hedge Fund Accountant Jobs

Hedge fund accountant jobs perform the crucial task of organizing and monitoring the flow of money through a hedge fund, maintaining accounts, making transactions, and keeping records of all exchanges. Accountants may also be responsible for the creation of monthly or quarterly reports for fund investors, and may be tasked with regulatory compliance as well. Keep in mind, this is not your typical accounting job. Just because you have 15 years of experience as a CPA, if you don't know alternative investments, you likely won't get the gig.

Accountants in hedge funds are generally expected to have a formal degree in accounting from a recognized business school, and prior experience in the finance industry, and with hedge funds in particular, is considered a strong advantage. Accountants in the hedge fund industry frequently start out in the $40,000 to $60,000 range, and may end up making $300,000 to $400,000 or beyond, if working for a large firm in a major metropolitan area.

Hedge Fund Portfolio Manager Jobs

Portfolio managers determine what actions must be taken in order to maximize hedge fund profits according to their preferred hedge fund strategies. This hedge fund job is responsible for taking conclusions from market data generated by analysts, working with risk managers to determine how best to structure the investments, and issuing instructions to traders to make the sales and purchases necessary to build the value of the fund.

Portfolio managers will generally be expected to have earned advanced business degrees from accredited colleges, although experience and a profitable record in analysis, trading, risk management, or other hedge fund jobs is considered far more important. Portfolio managers are not necessarily paid in terms of a regular salary, but rather are the recipients of hedge fund management and performance fees, which tend to be two percent of the total fund assets and twenty percent of the profit yields respectively. The amount of compensation for this hedge fund job is therefore limited only by performance and scale, and in extreme cases may register in the billions of dollars (yes, that's billion with a B).

Hedge Fund Trader Jobs

Traders are responsible for the actual buying and selling of financial products, as well as certain aspects of the research, analysis, and due diligence required for profitable transactions. The hedge fund trader is the person who executes the firm's overall investment strategy. Traders must maintain relationships with other brokers and firms, have a good understanding of the market and a thorough mastery of the areas in which they specialize, and have a strong awareness of issues, trends, and events currently impacting the financial industry.

Hedge fund traders are at the center of the investment firm. Quantitative analysts (also known as "Quants") work alongside traders, building trading models using computational mathematics and complex financial modeling. Trading jobs often require experience in portfolio management and various risk and financial models. Although nothing beats outstanding trading success, many hedge fund trading jobs require a background in statistics and those from the top MBA and Financial Engineering programs tend to get first pick of the available hedge fund offers.

Hedge fund trading jobs typically require either a business degree from an accredited university, or successful hedge fund experience, with a strong preparation in statistics being extremely beneficial. Trader salaries vary greatly depending on what company they work for and in which city they work, but base salary ranges reach between $40,000 and $80,000. Upper salary ranges for successful traders may range into the millions, with performance bonuses adding significantly to a trader's compensation package.