Hedge Fund Manager

A hedge fund is an investment fund that pools capital from accredited investors or institutional investors and invests in a variety of assets, often with complicated portfolio construction and risk management techniques. A simpler version of a hedge fund is an investment company that invests its clients' money in alternative investments to either beat the market or provide a hedge against unforeseen market changes. The term Hedge Fund Manager often refers to both a firm that provides investment management services and an individual who directs fund management decisions.

You can become a Hedge Fund Manager by generally holding a bachelor's degree or higher and also have several years of experience as a financial analyst. Students who are interesting in becoming Hedge Fund Managers can pursue a bachelor's degree in finance or related concentration such as accounting, economics, or business administration. Hedge funds are available to all investors. They are available for anyone to invest in, but in order to invest in a hedge fund, a potential investor must have a net worth of at least a million dollars, not counting the value of their house.

Hedge funds workers, work around 70 hours a week. Around 80% of people working in hedge funds work between 50 and 70 hours a week, according to a recent report from consultants Benchmark Compensation. Hed funds make money by charging a management fee and a performance fee, while these differ by fund, they typically run 2% and 20% of assets under management. The hedge fund managers who make the most money every year, do it mainly from having their own money in the fund and having the fund do well. They make a lot of money because they are rich to start the year and they are skillful investors. Of course, hedge fund managers also make money from the profits of their business.

It is not difficult to become a Hedge Fund Manager, only very competitive. Investing is very competitive and everyone chasing the same idea "MAKE MONEY!" if you focus on making money and are good at it you will become rich. However, you will have a very short career if you can't outperform in money management.

You may be thinking what is the difference between Hedge Funds and Investment Banks. Hedge Funds are small and work on the buy side, they buy businesses and avenues on behalf of the investors who've already put up the money. Whereas investment banks are huge organizations and work on complex financial transactions, such as underwriting, acting as an intermediary between a securities issuer and the investing public, facilitating mergers and other corporate reorganizations and acting as a broker or financial adviser for institutional clients.

Being a Hedge Fund Manager is definitely one of the careers I'm more interested in!

If you want to read my other blogs on careers click on the links below!
https://addylinsworld.blogspot.com/2020/01/real-estate-agent.html
https://addylinsworld.blogspot.com/2020/01/detective_66.html