Career Choices in Hedge Fund

Hedge funding is an unregulated funding sector where hedge fund managers are responsible for minimizing the risks associated with the invested funds by using the “hedging” strategy. Hedging strategy is nothing but purchasing a long position and a short position together to counterbalance all the risks associated with the invested funds.

Since this is a high specialist area, MBAs with good exposure in the investment banking are usually preferred for the positions of hedge fund managers. Another career option associated with hedge funding is the position of a ‘portfolio manager’.

Major career responsibilities of a portfolio manager involve various tasks such as deciding the combination of a portfolio; planning a portfolio; choosing various hedge funds; assessing and evaluating the risks involved in various portfolios and finally making right decisions regarding the trading of various funds. But the degree of responsibility always depends on the size of the hedge funds. The larger the fund, the more the responsibility is.

Career responsibilities of a hedge fund manager are quite similar to those of a portfolio manager. Additionally, he has to handle other functions such as picking the best hedge funds, i.e. risk weighted long term performing hedge funds for his company after doing a thorough market research and risk analysis. He is also responsible for keeping a regular track of the performance of his firm’s hedge funds so that accurate decisions can be made at the right time. Sometimes he may be made responsible for some accounting and financial operations that are majorly associated with the hedge funds he is handling.

The important personality attributes required by a portfolio manager or a hedge fund manager include the skills such as high analytical skills, risk bearing ability, ability to work under pressure, ability to find out potential investment sectors, ability to calculate cost-benefit of a hedge fund, good communicational skills and ability to put through his point of view regarding hedge fund trading decisions before the higher authority.