A hedge fund’s job is to manage a pool of money for large investors. The fund receives a compensation for its work by taking a hefty management fee (typically 2% of assets under management per year) as well as a carry (a percentage of returns over a benchmark) that is paid for performance.
The hedge fund analyst uses investment strategies including with the goal of generating high returns. The hedge fund manager takes decisions on a wide range of financial assets - from corporate bonds to stocks and currencies. Unlike traditional money managers, hedge fund managers usually engage in short selling
The Top Hedge Funds in the world are:
J.P. Morgan Asset Management
Brevan Howard Asset Management
Och-Ziff Capital Management Group
BlueCrest Capital Management
AQR Capital Management
New traders with no experience can expect a $50,000-$80,000 salary, with the mean salary being $58,863. Investment bankers or MBA students with little experience earn between $90,000 to $120,000 with a bonus. Moreover, hedge fund compensation is related to the performance of the fund.
How to get there:
A business-oriented bachelor’s degree such as economics or finance is required. Companies search for candidates with a strong mathematical or financial background. An MBA or Ph.D will increase the chances of promotion within the firm. Companies usually expect candidates with limited experience to spread the numbers and be very competent with Excel. Experience is also important and internships are extremely valued by recruiters.
- Emotionally well-adjusted
- Hard working
- Computer skills
- Written skills
- Quick minded
- Fluent in speech
The Certified Hedge Fund Professional (CHP) program is a training and certification program. It was created by hedge fund professionals to prepare future hedge fund analysts.
It is an online training program that allows participants to earn a certificate in hedge funds. In order to earn the certificate, students have to pass the course requirements and receive a passing grade on the examination.
- Composition I and Advanced Composition/Writing
- CMN 101- Public Speaking
- CMN 211- Business Communication
- ECON 411- Public Sector Economics
- ECON 426- Monetary Economics and Policy
- ECON 460- Financial Economics
- ECON 475- Economic Forecasting
- FIN 221- Corporate Finance
- *Actuarial Courses (MATH & FIN)
Relevant Clubs & Organizations:
- Personal Finance Club
- Finance Club
- Alternative Investments Club
- Illini Business Financials
- Capital Investment Group
- Econ Club
- Econ Ambassadors