Best Hedge Fund Courses & Certifications [2024] | Coursera (2024)

FAQs

What is the best degree to work in a hedge fund? ›

degree in finance is ideal for a variety of hedge fund jobs, but your major will matter. Bachelor of Science degrees in mathematics, accounting, physics, computer science, and even engineering are also useful, given the recent rise in algorithmic trading.

Fund managers may need to acquire additional FINRA licensing depending on the size of the fund and type of assets invested in. Additionally, professional and educational credentials, such as a CFA charter or graduate degree in a relevant field, will come in handy.

While the CFA tends to focus on investment management and analysis, the FRM delves deep into the complexities of risk management.

In 2023, the five highest-paid hedge fund managers were Ken Griffin of Citadel, Izzy Englander of Millennium Management, Steve Cohen of Point72 Asset Management, David Tepper of Appaloosa Management, and James Simon of Renaissance Technologies.

A hedge fund manager is a financial adviser who oversees investment accounts, leverages advanced financial software and raises expenditure capital. You can become a hedge fund manager by obtaining at least a bachelor's degree, earning CFA certification and gaining experience in the finance industry.

Great quantitative skills with a proven track record, a deep understanding of the hedge fund industry as well specific firms, the right educational background, and certifications like a CFA, CAIA, or CHA (Chartered Hedge Fund Associate) are all helpful.

Do I need a series 7 to start a hedge fund? ›

The Series 7 license is a securities license that allows individuals to sell securities, such as stocks, bonds, and mutual funds, to clients. While hedge fund managers may need to obtain other licenses or certifications, such as a Series 63 or Series 65 license, they are not required to have a Series 7 license.

Meanwhile, CAIAs tend to work in more niche spaces such as hedge funds or private equity firms. But the two often cross paths. Some argue that the CFA exam stands as the more difficult to pass as it covers more content and historically has reflected lower passing rates than that of the CAIA.

Both certifications are highly respected in the finance industry, but they cater to different areas. CFA is focused on investment management and financial analysis, while FRM specialises in risk management. Your choice should align with your specific career aspirations and the field you're passionate about.

FRM vs PRM difficulty

The general consensus from candidates is that FRM is more difficult and in-depth, whilst PRM is moderately difficult and covers more foundational topics in comparison. FRM exams also generally have lower pass rates and higher passing score required to pass (see next section).

Many hedge fund managers have their CFA, but there is a great deal of work involved in the middle. And your CFA could lead you in hundreds of destinations, only one of which would be hedge fund manager. CFA is not an absolute requirement, but it certainly helps.

Licenses for Hedge Fund Managers

Chartered Financial Analyst (CFA) is a designation conferred by the CFA Institute. Three exams must be completed, which typically takes between 18 months to four years. Series 65 is the licensing program offered by FINRA that permits hedge fund managers to act as an investment adviser.