Hedge Fund Managers

Overview

Hedge Fund Managers

Introduction

Hedge fund managers are the “big dogs” of the hedge fund industry. They either run a particular strategy (e.g., long/short equity, event driven, fixed income and credit, macro and managed future, etc.) within a larger hedge fund or manage the entire hedge fund. Many managers are the founders of the firm. Hedge fund managers are also known as portfolio managers (although this title may also refer to those who manage a fund, but don’t own it) or managing partners.

Quick Facts


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Median Salary

$1,500,000

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Employment Prospects

Fair

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Minimum Education Level

Master's Degree


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Experience

At least 10 years of investment experience and a proven performan
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Skills

Business Management
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Personality Traits

Enterprising
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Earnings

The average hedge fund portfolio manager earned average base pay of $277,268, plus $686,757 in variable compensation, including bonuses, commission, and options in 2017, according to Institutional Investor’s All-America Buy Side Compensation report. 

According to Institutional Investor’s Alpha, the top 25 hedge fund managers earned an average of $808 million in...

Work Environment

A career as a hedge fund manager can entail both high stress (due to the great pressure to make the correct investment decisions) and high rewards (if one makes the right portfolio choices). The trading atmosphere is fast-paced, and managers must be able to think clearly and be decisive under pressure. Hedge fund managers work long hours studying the market, devising and revising investment str...

Outlook

The hedge fund industry is in transition. Many hedge funds have been liquidated and many surviving funds are providing weak financial returns to investors. Increasing regulation is making it harder to operate and fund small- and medium-size hedge funds. As a result, the employment outlook for hedge fund managers will only be fair during the next decade. 

More hedge funds are ...