What degree should I get to work at a hedge fund?
When preparing for a career in a hedge fund, consider earning your bachelor's degree in math, accounting, finance, investment banking, economics or business. You can also benefit from taking courses in financial math, global investment strategy, emerging markets, psychology and consumer behavior.
While not always mandatory, many hedge funds prefer candidates with advanced degrees such as a Master of Business Administration (MBA), Master of Finance (MFin), Master of Science in Finance (MSF), or a Ph. D. in a quantitative field.
The easiest path to landing a job at any type of hedge fund is to work in banking for the first two years out of undergrad. During those years, make sure you develop a good reputation and try to be a top bucket analyst. You need to be very good at excel and have a strong grasp on valuation / modeling.
| Education Required | Bachelor's degree; master's often preferred |
|---|---|
| Education Field of Study | Finance, accounting, economics, or business administration |
| Optional Certification | Chartered Financial Analyst (CFA) certification |
| Skills Required | Analytical, communication, detail oriented |
The report also ranked schools by investment product focus. The top school for American hedge funds was Harvard University, followed by Penn and Chicago. For U.S. equities, Penn was first, followed by Chicago and Harvard. In U.S. fixed income, Penn was again number one, followed by Chicago and New York University.
If you're a day trader, it will be extremely difficult to win hedge fund jobs because trading a small amount of your own money is very, very different from taking positions worth millions or tens of millions.
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.
After earning your degree, completing an internship, finding a mentor, expanding your network and creating a resume, you can apply for a position working for a hedge fund. Research companies that best fit your goals and expectations and look for open entry-level positions.
Long and stressful days
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.
On the negative side, the hours are still long and stressful (though better than investment banking hours), job security can be low, and your exit opportunities will be limited.
Who is the youngest billionaire hedge fund managers?
In 2007 he became the youngest billionaire in the U.S. Chase Coleman founded a hedge fund Tiger Global Management at the age of 26. In 2023 his wealth is estimated to be $8.5 billion.
Common degrees sought by traders include business administration and finance, investment management, economics, statistics, computer science, data analytics and applied mathematics. Skills traders benefit from include communication, strategic planning, technical, critical thinking and adaptability skills.
What Degree is Best for Investment Banking? Simmerman said that while it's possible to get into investment banking with an accounting or business degree, a finance degree will give you the best chance of landing the job you want.
What education is required to become a hedge fund manager? Many hedge fund employers require employees to receive a bachelor's degree in finance or a related specialty like accounting or economics. Some hiring managers may require a master's in business administration as well.
The top-ranked undergraduate programs for getting an investment-management job at a hedge fund, mutual fund or private equity fund include the usual suspects. Coming in first is the University of Pennsylvania, followed by Harvard University, Stanford University, Cornell University and Princeton University.
There is no specific or average GPA requirement for becoming a hedge fund analyst. However, hedge funds tend to hire top-performing graduates from prestigious universities and top-ranked business schools. These candidates typically have strong academic records, including high GPAs and test scores.
It is not uncommon for someone with 5 to 10 years of experience (if they last that long) to secure hedge fund salaries that are close to US$ 1 million per year. If you start your own hedge fund, though, hedge fund salaries get a little more complicated.
They are considered the most prestigious jobs, pay the most, and offer the highest advancement potential and the best career opportunities. At some funds, there are additional roles – for example, at quant hedge funds, there are also quants and programmers with math/statistics/computer science backgrounds.
Hedge Fund Analyst Hours and Lifestyle
At smaller, single-manager funds, the average might be 10-12 hours per day, for a total of 50-60 hours per week (weekend work is rare). As you move to larger, multi-manager funds, the hours and stress get worse, so the average may be more like 60-70 hours per week.
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.
What is a PM at a hedge fund salary?
| Role | Base Salary | Average Bonus (% of Base) |
|---|---|---|
| Junior Analyst | $70,000 - $100,000 | 25% - 50% or more |
| Analyst | $100,000 - $150,000 | 50%+ |
| Senior Analyst | $150,000 - $250,000 | 70%+ |
| Portfolio Manager | $200,000 - $250,000 | 70%+ |
How much does an Entry Level Hedge Fund Analyst make? As of Mar 14, 2024, the average hourly pay for an Entry Level Hedge Fund Analyst in the United States is $38.63 an hour.
Getting an internship at a hedge fund can be very competitive and difficult. Hedge funds typically attract top-tier talent from prestigious universities and business schools, and the interview process is often rigorous and highly selective.
Get the Necessary Education
To even consider becoming a hedge fund manager, you'll typically need a few educational qualifications. These vary from state to state, but the bare minimum would be a bachelor's in business or accounting.
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.
