If you want to earn six figures as an entry-level staff member, you may need to hunt for hedge fund jobs. A hedge fund is a private investment partnership in which investors pool money to be channeled into profitable ventures. The funds are managed by professional managers whose core job is to turn around the invested funds with above-average returns.
It is essential to understand that the picture we just painted of a hedge fund is sketchy. The fund manager cannot do all the work alone. There are complementary and functional roles in the investment concern that an entry-level job seeker can conveniently fill. So, we shall hereafter identify entry-level hedge fund jobs that pay well.
1. Trade Support
We live in the age of artificial intelligence and advanced algorithms. Many hedge funds now adopt these technologies to turbocharge the proficiency of their human professionals. For example, trading and analytic systems efficiently conduct activities such as risk assessment, financial modeling, performance analysis, and market research.
So, here’s where trade support comes in. In reality, many hedge funds depend heavily on the systems described earlier. Consequently, the company needs IT professionals to build resilient trading systems tailored to the hedge’s investment strategy. Similarly, these professionals respond and address system glitches that could disrupt trading.
If you are an IT professional, this is an avenue to break into a hedge fund company.
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2. Accounting
Investment analysts at hedge funds require the services of a functional accounting department. Thus, hedge fund jobs in the USA include accounting roles and responsibilities such as bookkeeping and calculating net asset value (NAV).
Hedge fund jobs at the entry-level are hotcakes, particularly in the accounting department. Most of the responsibilities in the accounting department are aided by computers and enterprise accounting software packages. So, with mild training, young graduates can get started in the accounting department and, maybe, with time, rise to the rank of investment analyst.
3. Marketing
Hedge funds, even established ones, need to woo high-net-worth investors to keep the organization’s rounds of investments going. So, entry-level hedge fund jobs in the marketing department may entail portfolio management, client relations, and investor onboarding.
Since the department is the human face of the department, entry-level hires must score high in soft skills and financial knowledge. Entry-level employees with these proficiencies often do well at hedge funds; we’ll briefly explain why. In addition to earning six figures on the hedge fund’s payroll, the newbie also builds a robust and valuable network while interfacing with high-value investors.
4. Risk Management Professionals
Every form of investment, big or small, has accompanying risks. A hedge fund’s ability to identify such risks upfront makes it possible to manage them efficiently. Alternatively, the fund may avoid the investment altogether. Entry-level staff who carry out such risk assessments and identify alternative investments are usually called risk analysts.
Risk analysts become risk managers after displaying their wealth of knowledge and experience on the job. In this capacity, they make key portfolio management decisions alongside other senior personnel within the hedge fund.
Albeit, here are the two main functions of a risk manager:
- They recommend investment strategy by setting boundaries for trade investments and exposures in a bid to maximize profits
- They are also responsible for keeping tabs on current realities of investment portfolios to make sure there are no boundary breaches
5. Traders
Traders are the foot soldiers of the average hedge fund. They go down into the investment trenches for the due diligence that ensures the firm gets profitable results. Entry-level traders in hedge funds are often responsible for executing investment professionals’ trading strategies and investment plans.
One of the risk measures that higher-ups in hedge funds take is to help entry-level traders learn with small-time commodities. For example, portfolio managers provide these rookie traders with simple, easy-to-navigate futures, bonds, or equities. After acclimatizing to the markets, they can handle more complex and sophisticated investment portfolios.
6. Investment Professionals
Investment professionals are the partners conducting quantitative research to generate trading strategies and alternative investments. After all the hands have been dealt with, these professionals assess the investment quality and yield equally through performance analysis.
After extensive market research and financial modeling, investment professionals also give quants, traders, and money managers the green light to try out risky trades and strategies. So, when entry-level investment professionals get into the role, they often start off as researchers or modelers. These newbies get to learn a lot about existing trading strategies and the trading culture of their affiliate hedge fund.
There are a plethora of possibilities and opportunities for folks prospecting for entry-level hedge fund jobs. Only prepare your mind to do the due diligence, which may come as a tall pile of quantitative research on your desk. However, with hardwork and diligence, the six figures will trickle in easily.