How many hours a week do hedge fund managers work?
On average, hedge fund traders often work long hours, ranging from 50 to 80 hours per week. The specific workload can depend on the fund's strategy, market conditions, and individual firm policies. During peak periods or when significant market events occur, traders may put in even longer hours.
In terms of everyday responsibilities, the main duties of a fund manager include building financial models, meeting with clients, and analysing investments. At a higher level, they oversee the hedge fund's daily operations. This might include risk management, marketing, sales, and cash flow forecasting.
Many PMs work around 60 hours per week (or more), but they're “on call” all the time because the markets are always moving, and potential crises are always waiting.
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.
Hedge fund analysts typically work between 60 and 70 hours a week. Working on the weekend is not common but it certainly does happen from time to time.
Reality: High Stress and Potentially Constant Long Work Hours. Depending on the type of fund, you could work long hours especially when you are just starting. There is a reason why people say at hedge funds your first 6 months is like “drinking from a fire hose.” The role is unlike investment banking or private equity.
Hedge fund managers typically earn above-average compensation, often from a two-and-twenty fee structure. Hedge fund managers typically specialize in a particular investment strategy that they then use to power their fund portfolio's mandate for profits.
Who Is the Richest Hedge Fund Manager? Ken Griffin of Citadel is both the richest hedge fund manager and the highest paid. In 2022, he earned $41. billion, and by the beginning of 2023 his net worth was estimated at $35 billion.
But since hedge funds invest in highly liquid financial assets, redemptions tend to be much easier. Risk: All else being equal, hedge funds are probably riskier because they do not control the assets they trade, and it's very difficult to beat, or even match, the performance of the public markets.
Pay at this level depends almost 100% on performance, which means that PMs could make a few hundred thousand USD… up to $1 million or even $10 million+. On average, though, a PM at a mid-sized fund that performs decently might earn between $500K and $3 million.
Can hedge fund managers work from home?
Yes, some hedge fund managers and traders do work from home or remotely, especially with advancements in technology that allow for seamless communication and trading execution.
The average age of portfolio managers is 40+ years years old, representing 68% of the portfolio manager population.
Hedge funds are widely regarded as offering significant earning potential. Junior level employees are able to achieve salaries upwards of $500k in some places, and the best fund managers can see their net worth ultimately reach nine or even ten figures.
It is not uncommon for someone with 5 to 10 years of experience (if they last that long) to secure hedge fund salaries that are close to US$ 1 million per year. If you start your own hedge fund, though, hedge fund salaries get a little more complicated.
Hedge fund managers often have a master's degree or even a Ph. D. in finance, mathematics, economics, financial engineering, quantitative finance, programming, marketing, or business administration. Others have advanced degrees in a specialty such as engineering or accounting.
Hedge Fund Manager Years | Percentages |
---|---|
40+ years | 71% |
30-40 years | 24% |
20-30 years | 5% |
“We don't have a dress code,” the fund notes on its career page. “Folks come to work in anything from a suit to jeans and a t-shirt – the same goes for you. We recommend wearing what you feel is appropriate and comfortable.” Has this become an industry trend?
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.
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 funds are generally more aggressive, riskier, and more exclusive than mutual funds. Their managers have freer rein to invest in a wide variety of assets and to use bolder strategies in pursuit of higher profits, and are rewarded with much higher fees than mutual funds charge.
What is the highest paying job in a hedge fund?
Job Title | Annual Salary | Monthly Pay |
---|---|---|
Hedge Fund Attorney | $175,207 | $14,600 |
Cfo Hedge Fund | $157,532 | $13,127 |
Private Equity Fund Controller | $154,999 | $12,916 |
Hedge Fund General Counsel | $151,643 | $12,636 |
The average salary for Fund Manager is $1,76,152 per year in the United States. The average additional cash compensation for a Fund Manager in the United States is $54,381, with a range from $40,786 - $76,134.
A hedge fund manager oversees the operations and functions of a hedge fund. A hedge fund combines investors' money, like a mutual fund, but often has a higher risk and, in return, a higher reward for investors.
The recent Forbes 400 (richest American billionaires) list has about 112 people, by my count, who made their fortunes in some form of Finance, Investments, Hedge Funds, insurance or banking.
- Daniel Loeb.
- Carl Icahn.
- Ken Griffin.
- David Tepper.
- John Paulson.
- Israel Englander.
- Bill Ackman.
- The Bottom Line.
References
- https://www.linkedin.com/pulse/so-you-want-hedge-fund-billionaire-jerry-nunn-t66oc
- https://www.quantconnect.com/research/15262/fama-french-five-factors/
- https://www.investopedia.com/articles/financial-advisors/121515/how-much-mutual-fund-managers-make.asp
- https://regoconsulting.com/5-reasons-to-use-portfolio-management/
- https://careers.umbc.edu/students/documents/portfolios/steps/
- https://www.indeed.com/career-advice/finding-a-job/portfolio-manager-vs-hedge-fund-manager
- https://www.firstcitizens.com/personal/insights/family/what-to-tell-your-financial-advisor
- https://www.5paisa.com/stock-market-guide/stock-share-market/what-is-portfolio-management
- https://www.apm.org.uk/resources/what-is-project-management/what-is-portfolio-management/
- https://www.bajajallianzlife.com/life-goal-mantra-rule-for-financial-freedom.html
- https://www.investopedia.com/articles/investing/042015/10-most-famous-hedge-fund-managers.asp
- https://www.ig.com/uk/glossary-trading-terms/portfolio-risk-definition
- https://www.buysidehustle.com/reality-of-working-at-a-hedge-fund-an-insiders-guide/
- https://www.composer.trade/learn/what-is-a-90-10-portfolio-strategy
- https://academic.oup.com/book/3188/chapter/144100145
- https://www.investopedia.com/articles/investing/102113/what-are-hedge-funds.asp
- https://guides.pm-research.com/content/iijetfind/2012/1/68
- https://groww.in/blog/pms-vs-mutual-funds-investment
- https://www.financestrategists.com/wealth-management/investment-management/life-cycle-investing/
- https://www.investopedia.com/terms/p/portfoliomanagement.asp
- https://300hours.com/hedge-fund-career-path/
- https://vault.com/professions/investment-fund-managers
- https://gocardless.com/guides/posts/what-does-a-hedge-fund-manager-do/
- https://emeritus.org/blog/finance-how-to-become-a-portfolio-manager/
- https://www.pmi.org/learning/library/project-portfolio-management-techniques-7624
- https://www.merriam-webster.com/dictionary/portfolio
- https://m.economictimes.com/wealth/invest/what-are-the-charges-of-portfolio-management-service/articleshow/107179157.cms
- https://smartasset.com/financial-advisor/the-minimum-investment-for-a-financial-advisor
- https://www.investopedia.com/articles/pf/06/riskyportfolio.asp
- https://corporatefinanceinstitute.com/resources/career-map/buy-side/hedge-funds/hedge-fund-manager/
- https://www.investopedia.com/articles/financial-advisors/121515/portfolio-manager-career-path-qualifications.asp
- https://www.ziprecruiter.com/Salaries/Hedge-Fund-Salary
- https://www.blackrock.com/us/individual/literature/fact-sheet/sma-target-allocation-70-30-etf-factsheet.pdf
- https://hedgefunds.globaltradersacademy.org/en/news/hedge-fund-manager-salary/
- https://www.investopedia.com/articles/investing/062714/100-minus-your-age-outdated.asp
- https://money.usnews.com/financial-advisors/articles/how-financial-advisors-work-with-billionaires
- https://www.investopedia.com/articles/financialcareers/08/hedge-fund-career.asp
- https://www.forbes.com/advisor/education/business-and-marketing/become-a-portfolio-manager/
- https://www.ziprecruiter.com/Salaries/Portfolio-Manager-Salary
- https://smartasset.com/financial-advisor/aggressive-investor
- https://www.efinancialcareers.com/news/2018/12/dress-code-hedge-fund-interview
- https://www.wiseradvisor.com/blog/investment-management/portfolio-manager-vs-investment-advisor/
- https://in.indeed.com/career-advice/career-development/how-to-make-portfolio
- https://www.glassdoor.co.in/Salaries/us-fund-manager-salary-SRCH_IL.0,2_IN1_KO3,15.htm
- https://www.toptal.com/finance/portfolio-managers
- https://www.neeley.tcu.edu/News/Insights/The-Economics-Behind-Successful-Hedge-Funds
- https://www.vinovest.co/blog/portfolio-strategy
- https://www.tipranks.com/news/personal-finance/how-to-manage-your-own-stock-portfolio
- https://www.cushon.co.uk/info/knowledge/what-is-the-difference-between-a-fund-and-a-portfolio
- https://cafsindia.com/portfolio-management/
- https://www.cfainstitute.org/en/programs/cfa/charterholder-careers/roles/portfolio-manager
- https://www.investopedia.com/ask/answers/100515/what-do-hedge-fund-analysts-do.asp
- https://resumeworded.com/career-profiles/portfolio-manager-career-profile
- https://ift.world/booklets/portfolio-management-an-overview-part1/
- https://www.capstoneassets.ca/your-wealth-matters/blog/portfolio-managers-vs-investment-advisors
- https://www.cfainstitute.org/en/membership/professional-development/refresher-readings/portfolio-management-overview
- https://www.thestreet.com/investing/what-is-portfolio-management-15140753
- https://www.quora.com/Do-any-hedge-Fund-managers-work-from-home-only-without-being-physically-present-in-office-for-trading-purpose
- https://www.investopedia.com/articles/stocks/07/beat_the_mistakes.asp
- https://navi.com/blog/pms-funds-vs-mutual-funds/
- https://imas.org.sg/education/abcs-of-investing/a-day-in-the-life-of-a-fund-manager/
- https://www.kubera.com/blog/portfolio-value
- https://www.themuse.com/advice/why-you-yes-you-need-a-professional-portfolio
- https://www.careerexplorer.com/careers/investment-fund-manager/personality/
- https://mergersandinquisitions.com/hedge-fund-portfolio-manager/
- https://www.northwesternmutual.com/life-and-money/what-can-millionaires-teach-us-about-financial-planning/
- https://www.investopedia.com/ask/answers/050115/what-are-some-reallife-examples-8020-rule-pareto-principle-practice.asp
- https://homework.study.com/explanation/is-there-any-difference-between-portfolio-and-investment-management.html
- https://www.linkedin.com/pulse/portfolio-lifecycle-management-core-successful-jim-smithson
- https://www.bankrate.com/investing/low-risk-investments/
- https://www.advisorsmagazine.com/finance/23399-the-three-pillars-of-a-custom-portfolio
- https://money.usnews.com/investing/articles/portfolio-management-meaning-types-examples
- https://vault.com/professions/hedge-fund-managers/requirements
- https://www.investopedia.com/articles/professionals/100515/top-5-highest-paid-hedge-fund-managers.asp
- https://www.bankrate.com/investing/what-is-the-rule-of-72/
- https://www.saviom.com/blog/project-management-vs-program-management-vs-portfolio-management/
- https://www.investopedia.com/articles/financial-advisors/052115/how-financial-advisors-pick-client-investments.asp
- https://www.investopedia.com/terms/p/portfolio-return.asp
- https://smartasset.com/advisor-resources/is-investment-manager-a-good-career-path-for-beginners
- https://www.nerdwallet.com/article/investing/how-much-does-a-financial-advisor-cost
- https://www.nerdwallet.com/article/investing/what-is-portfolio-management
- https://www.ambitionbox.com/profile/portfolio-manager-salary
- https://vestedfinance.com/in/blog/what-is-portfolio/
- https://vault.com/professions/mutual-fund-portfolio-managers/requirements
- https://smartasset.com/financial-advisor/financial-advisor-vs-self-investing
- https://finance.yahoo.com/news/70-30-vs-80-20-183231906.html
- https://www.zippia.com/hedge-fund-manager-jobs/demographics/
- https://www.livemint.com/money/personal-finance/portfolio-management-5-investment-strategy-for-better-management-of-your-money-11681347724857.html
- https://www.linkedin.com/advice/1/what-key-factors-consider-when-choosing-portfolio
- https://www.investopedia.com/articles/financial-advisors/011916/why-6040-portfolio-no-longer-good-enough.asp
- https://www.zippia.com/portfolio-manager-jobs/demographics/
- https://www.religareonline.com/blog/types-of-portfolio-investment/
- https://www.schwab.com/learn/story/how-to-determine-your-risk-tolerance-level
- https://mergersandinquisitions.com/hedge-funds/
- https://www.indeed.com/career-advice/finding-a-job/portfolio-managers
- https://www.tataaia.com/blogs/financial-planning/5-important-steps-of-the-investment-process.html
- https://www.investopedia.com/articles/company-insights/083116/portfolio-planning-process-step-step.asp
- https://www.indeed.com/career-advice/resumes-cover-letters/build-your-work-portfolio
- https://www.projectp.com/ppblog/2017/07/17/3-fundamentals-of-successful-project-portfolio-management/
- https://advisor.morganstanley.com/the-pathak-group/documents/field/p/pa/pathak-group/Portfolio%20Manager%20Work-Life%20Balance%20-%20White%20Paper%20%282%29.pdf
- https://www.investopedia.com/articles/fundamental-analysis/09/elements-stock-value.asp
- https://mergersandinquisitions.com/hedge-fund-career-path/
- https://www.investopedia.com/ask/answers/041515/which-asset-classes-are-most-risky.asp
- https://onedayadvice.com/blog/a-breakdown-of-investment-management-fees
- https://ppm.express/glossary/hierarchy/
- https://www.investopedia.com/articles/younginvestors/12/portfolio-management-tips-young-investors.asp
- https://www.indeed.com/career-advice/career-development/how-to-become-a-portfolio-manager
- https://www.fool.com/investing/how-to-invest/portfolio-diversification/
- https://mergersandinquisitions.com/hedge-fund-analyst/
- https://www.glassdoor.com/Salary/Citadel-Portfolio-Manager-Salaries-E14937_D_KO8,25.htm
- https://www.pnbmetlife.com/articles/wealth/portfolio-management-and-its-importance.html
- https://aliresources.hexagon.com/knowledge-pages/project-portfolio-management
- https://www.investopedia.com/articles/wealth-management/021816/portfolio-manager-job-description-average-salary.asp
- https://www.financestrategists.com/financial-advisor/portfolio-management/
- https://www.investopedia.com/terms/h/hedge-fund-manager.asp
- http://www.trainingcreatively.com/blog/6-steps-for-implementing-portfolio-management/
- https://www.investopedia.com/terms/i/investment-manager.asp
- https://vault.com/professions/investment-fund-managers/requirements
- https://www.schwab.com/learn/story/investing-styles