Hedge fund compliance professionals - Vault (2024)

FAQs

Is it hard to get hired by a hedge fund? ›

Hedge funds employ some of the best-paid business professionals anywhere, but landing your first job in the industry is no cakewalk. Building a hedge fund career takes determination, networking stamina, and a fierce competitive streak. Here are some steps to help get you to that interview and then land that job.

Hedge fund compliance professionals ensure that their firm is in compliance with U.S. federal laws and regulations (such as the Investment Advisers Act of 1940, Securities Act of 1933, the Securities Exchange Act of 1934, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010), as well as with the ...

According to a Capco study, 50% of hedge funds shut down because of operational failures. Investment issues are the second leading reason for hedge fund closures at 38%.

Hedge Fund Career Requirements

Students sometimes get in straight out of university, but this is less common (though more funds, especially the bigger ones, are starting to recruit on campus). Your academic credentials, such as school reputation, GPA, and test scores, still matter.

The estimated total pay range for a Vice President Compliance at JPMorgan Chase & Co is $145K–$201K per year, which includes base salary and additional pay. The average Vice President Compliance base salary at JPMorgan Chase & Co is $151K per year.

For compliance officers, total compensation at a large public company is $298,000 on average, comprising $200,000 in base salary, $60,000 in bonuses and $28,000 in LTI. For the small private company compliance officer, compensation is $202,000 on average, comprising $185,000 in salary and $17,000 in bonus, with no LTI.

While ZipRecruiter is seeing annual salaries as high as $277,500 and as low as $43,500, the majority of Vice President Of Hedge Funds salaries currently range between $115,000 (25th percentile) to $190,000 (75th percentile) with top earners (90th percentile) making $244,500 annually across the United States.

Overall, the growing demand for compliance jobs is a reflection of the increasing regulatory environment and the need for organizations to demonstrate ethical practices. Compliance professionals play a pivotal role in ensuring legal adherence and minimizing risks for businesses across various industries.

CEOs may have the requisite authority needed to be a compliance officer.

Whereas risk management involves identifying all areas of risks to the organization and taking steps to con- trol, avoid, mitigate, or eliminate unac- ceptable risks, compliance focuses on identifying and mitigating regulatory risks.

What is the biggest hedge fund scandal? ›

Madoff Investment Scandal

Madoff admitted to his sons who worked at the firm that the asset management business was fraudulent and a big lie in 2008. 2 It is estimated the fraud was around $65 billion. 3 Madoff pleaded guilty to multiple federal crimes of fraud, money laundering, perjury, and theft.

According to the Financial Times, most hedge funds fail, with the average lifespan sitting at about five years. Hedge funds charge far above average fees (often as much as 2% of their assets under management plus a performance fee), and yet, for the last decade, many have failed to outperform the US market indices.

Overall, the consensus is that hedge funds will continue to grow but will adapt to lower fees, greater use of technology, and increased access to retail investors.

What education is required to become a hedge fund manager? Many hedge fund employers require employees to receive a bachelor's degree in finance or a related specialty like accounting or economics. Some hiring managers may require a master's in business administration as well.

It is not uncommon for a hedge fund to require at least $100,000 or even as much as $1 million to participate. Unlike mutual funds, hedge funds avoid many of the regulations and requirements within the Securities Act of 1933.

Based on recent data, the average annual return on investment for investors in a typical hedge fund is around 7.2%, with a Sharpe ratio of 0.86 and market correlation of 0.9. However, it's important to note that performance can vary significantly among different hedge funds.

40,000 students applied for those roles. Like Citadel, therefore, BAM only accepts 0.5% of applicants. Half of its interns go on to full-time jobs, so the eventual acceptance rate is 0.25%.