Last time we looked at what an analyst at a hedge fund does, entry-level qualifications and how quickly analysts can move ahead in their career. Now let’s look at the specific responsibilities of hedge fund analysts.
Given that there are so many different types of hedge fund investment strategies, it’s no surprise that hedge fund analysts’ jobs and focus vary widely, too. Here are some examples from recent job postings at JobSearchDigest.com
A junior investment analyst for a fund of hedge funds based in New York, for example, requires an undergraduate degree and a minimum of one year of work experience. This junior analyst would support the investment manager in in screening, researching, analyzing, and monitoring external investment managers. He would analyze performance data and do quantitative studies on different funds, attend due diligence meetings and assist with the administration of external investments.
A more senior analyst’s position, also for a hedge fund of funds, would be a member of the investment committee for the firm. He or she would report directly to the Chief Investment Officer. This particular analyst job requires an expert knowledge of derivatives and structured financial products, in keeping with the focus of the fund. A successful candidate for this position would need both a graduate degree that includes finance and quantitative courses from a top-tier university, along with five or more years of work experience in the category.
Then, of course, there are highly technical and specialized analysts’ jobs that require expertise in very narrow areas. One example might be an equity derivatives quantitative analyst. This mid-level job requires a graduate degree and possibly a PhD in mathematics, along with experience in quantitative analysis, finance, equity derivatives, proprietary trading systems, and possibly even some programming skills. In this particular case, a leading multi-billion dollar hedge fund was searching for a quantitative analyst to join its equity derivatives trading desk, and help in developing strategies for relative value trading, directional volatility trading, convertible bond arbitrage and more.
If you are passionate about investing or at least enjoy learning about the markets, and if you have the patience and skills to dive into mountains of research data to identify trends and opportunities, then a research analyst may be the right entry point for you into the world of hedge funds.
Schwab, Claude. Hedge Me. The Insider’s Guide to U.S. Hedge Fund Careers. Lynx Media