The unfortunate truth is there are more people looking for hedge fund jobs than there are jobs available, so hedge funds have their pick of the litter. This article is intended to show you how the search process works, and what the average hedge fund resume looks like. If you want to stand out from the crowd, take notes and do something different, or risk getting lost in the crowd.
It is very rare for a hedge fund to hire someone right out of school, so the typical hedge fund applicant will have at least 2 years of experience, usually in investment banking. Hedge fund managers just want to know how much money you can make them, so they don’t want to spend time teaching the basics like accounting, modeling, or basic corporate finance. Hedge funds will also consider consultants, ex- military, and accountants. A hedge fund manager is willing to train a person that can bring a unique skill to the table. Consultants often have deep industry contacts; military personnel are very disciplined and will work many hours without questioning the chain of command; and accountants, especially forensic accountants, can identify questionable accounting practices that public companies may use.
A typical applicant will likely have education from a top tier school. That doesn’t mean you have to have a degree in business or economics. In fact, many famous hedge fund managers are students of philosophy. Certain hedge funds require an MBA or CFA. Many people get both, but getting both is really a waste of time. If you already have an MBA, it is a much better use of time to spend the same countless hours researching good investment ideas than trying to pass a memorization test like the CFA.
So if you didn’t go to a top tier school, you didn’t work for an investment bank, and you aren’t an accountant, consultant or ex -soldier, you need to think of something really creative to beef up your hedge fund resume because the sad truth is there are plenty of unemployed people who have the right background and still can’t get in. You might be surprised to learn what hidden skills you have acquired over the years are just the ticket
FAQs
Few recruiters will work with someone who has less than three years of experience working directly within the hedge fund industry. Many professionals use experience in other industries to segue into the world of hedge funds, but they usually don't get there through recruiters.
What is the average return for hedge funds? ›
All hedge funds tracked by BNP Paribas returned an average of 7.66% in 2023, differing from the survey results released on Feb. 12. In 2022, these hedge funds returned an average of 0.42%, said a BNP spokesperson. However, survey respondents said their hedge fund portfolios returned an average of 1.1% in 2022.
What is the average return of Citadel? ›
Citadel Advisors Performance History
| Performance Metric | 3-Year Annualized Return | 3-Year Cumulative Return |
|---|
| Top 20 Holdings Weighted | 13.63% | 46.72% |
| Top 20 Holdings Unweighted | 10.02% | 33.17% |
| Top 50 Holdings Weighted | 11.52% | 38.69% |
| Top 50 Holdings Unweighted | 9.23% | 30.32% |
As a quantitative researcher who previously worked in the hedge fund industry, Farnsworth has been studying hedge funds for quite some time. Over the years, he noticed that the average lifespan of a hedge fund is quite short – less than five years.
What is the minimum salary for a hedge fund? ›
While ZipRecruiter is seeing salaries as high as $242,849 and as low as $32,804, the majority of salaries within the Hedge Fund jobs category currently range between $66,587 (25th percentile) to $117,017 (75th percentile) with top earners (90th percentile) making $165,000 annually in California.
How stressful is hedge fund? ›
The day for hedge fund managers is very long and full of stressful hours. The end of the market day doesn't necessarily mean that they are done for the day. Many hedge fund managers run positions in overnight markets so they will need to monitor those trades, often late into the night.
What is the 2 20 rule for hedge funds? ›
The 2 and 20 is a hedge fund compensation structure consisting of a management fee and a performance fee. 2% represents a management fee which is applied to the total assets under management. A 20% performance fee is charged on the profits that the hedge fund generates, beyond a specified minimum threshold.
What is the survival rate of hedge funds? ›
In terms of life-spans (see Figure 1), this paper estimates that 70 per cent of hedge funds die within 47 months (i.e. 3.92 years) and the annual attrition rate is 8.67 per cent per annum.
Do hedge funds pay a lot? ›
Hedge funds pay a lot more than private equity firms
Hedge fund pay is higher than pay in private equity. The average hedge fund employee earns $487k in combined salary and bonus; the average private equity professional earns 'just' $263k in salary and bonus. The real difference, though, is in pay per hour.
Which hedge fund has the highest return? ›
Top Hedge Funds List
| Fund Manager | 3-Year Performance MW | Top 20 Conc. |
|---|
| Lodge Hill Capital Clinton Murray | 91.86% (24.26% Ann.) | 100.00% |
| Donald Smith Donald Smith | 90.02% (23.86% Ann.) | 67.38% |
| Silver Point Capital Edward Mule | 88.59% (23.55% Ann.) | 100.00% |
| Brave Warrior Advisors Glenn Greenberg | 77.99% (21.19% Ann.) | 99.92% |
18 more rowsCitadel has generated roughly $74 billion in total gains since its inception in 1990, making it the most successful hedge fund of all time. Founded by Ken Griffin, Citadel was the second best-performing fund in 2023, raking in approximately $8.1 billion in profits last year.
How much do you need to invest in Citadel? ›
The minimum amount of investable assets required to invest in one of Citadel's funds is $10 million.
What is the average return of a hedge fund? ›
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.
What do hedge funds do all day? ›
A hedge fund is a limited partnership of private investors whose money is pooled and managed by professional fund managers. These managers use a wide range of strategies, including leverage (borrowed money) and the trading of non-traditional assets, to earn above-average investment returns.
Is hedge fund a hard job? ›
Decision-making: Hedge funds and other investment money managing firms are typically fast-paced work environments. People in these roles need to make quick and efficient decisions, as they have to respond to stock market changes, which can occur often.
Is hedge fund as a career worth it? ›
Compensation: You can no doubt make a lot of money at hedge funds, especially if you join a team that has a good long term track record. Your income can scale significantly when you start getting a cut of the P&L and contribute to money making investments. More about hedge funds salaries and bonuses here.
Do hedge funds hire straight out of college? ›
While working in equity research or in investment banking is typically the clearest path to working at a hedge fund, it is not impossible to start working at a hedge fund right after undergrad.
What majors do hedge funds hire? ›
A Bachelor of Science (B.S.) 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.
