How to Become a Hedge Fund Manager

A career as a hedge fund manager is the most sought after and coveted one in today's world of finance. These are the finance executives who manage millions of dollars of high net worth clients and invest the amount in the right instruments. Hedge funds are institutions which are not regulated by the SEC and they are open to a few investors. The hedge fund strategy is decided on the basis of the number of investors and the total amount of money involved in it. Managing a hedge fund is not an easy task and one needs to have the right educational qualifications and aptitude to emerge as a successful hedge fund manager. Let's see what you have to do to become one.

Educational Requirements

• Hedge fund managers mostly have college degrees in the fields of accounting, economics, mathematics or finance.
• Degrees from ordinary schools won't land you the best job as a hedge fund manager.
• For this job, you need to pass out from premier management institutions.
• Many hedge fund managers have Masters in Business Administration (MBA) with a specialization in finance.
• A doctorate in the field of accounting/finance can also be useful.
• High level of education assures the clients that their money is in safe hands and the chances of making decent profits are huge.

Importance of Experience
Gaining suitable experience is one of the most vital steps to a career in hedge funds. You can't expect to get the topmost post in a reputed hedge fund after working for a few years. Initially, you will have to start off your career as a financial analyst/business analyst and understand the working of the company in detail. After this, you should work for senior level positions such as finance executive, finance director or chief financial office before you get to lead the transactions of a renowned hedge fund. Internships in large hedge funds can help a lot to get the much-needed practical exposure.

Salaries for Hedge Fund Managers

Hedge fund managers earn astonishingly high salaries. Here are some important points related to it:

• Hedge fund manager salaries depends a lot on the nature of the client whose portfolio he has to manage. Income will be very high for those managing portfolios of huge corporations and wealthy individuals.
• Successful hedge fund managers in the United States can make about a million dollars per year.
• Though these salaries are not earned by every hedge fund manager, this job will certainly pay you more than other finance jobs.
• The income largely depends on the commission he gets to manage the fund. This can range between one to two percent of the total amount invested in the fund.
• Performance based fees are also a salient feature of the hedge fund manager's salary. More the profits generated by the fund, more will be the incentives for these talented professionals.

If you find this career interesting you should start your preparations from high school itself as the competition is extremely fierce. Good luck!