From the category archives:

Hedge Fund Careers

People of diverse backgrounds have found a home in the hedge fund industry – lawyers, computer scientists, investment bankers and public accountants, to cite a few. According to the 2017 Hedge Fund Compensation Report, the previous professional backgrounds of about 14 percent of hedge fund professionals are lumped into an amorphous category termed “other”, which may well include the writing profession.

Are You Joking?

In a recent survey conducted by Kurtosys Systems Inc., a leading provider of fund marketing systems,  it was disclosed that almost two-thirds of asset managers regard content marketing as their single most effective marketing tool. It follows that professional writers must be engaged to supply this content. Of course, asset management is a broad category, of which hedge funds are but one component. Nonetheless, the importance of content to hedge fund marketing should not be underestimated.

Late to the Party

Hedge funds were among the last to adopt a client-facing web presence, in part due to regulatory prohibitions. However, the hedge fund industry can benefit from not having pioneered this marketing segment, and come away from the experience with far fewer arrows in its back.

As the digital revolution matures, hedge funds have learned that simply having a website is not enough. Engaging content is a critical factor that ensures visitors to a website return repeatedly. After all, there isn’t much point in creating a website that fails to attract visitors and, once visited, doesn’t provide them with an incentive to return. Hedge funds are very tuned-in to return on investment (ROI) so this is a point that will not be lost on our industry.

A lucid content strategy is essential to winning new clients and retaining existing ones. Countless studies have demonstrated that companies with high-quality content marketing generate increased traffic, boost engagement, produce more leads and drive higher conversion rates than many other marketing strategies. This is no less true with hedge funds.

What about Hedge Fund Jobs?

Hedge funds are on track to achieve 11 straight months of positive gains. This fact alone is encouraging to hedge fund job seekers. More to the point, hedge fund opportunities are available to individuals whose background and experience may, at first blush, seem unsuitable to the industry. However, the hedge fund industry is always innovating and with innovation comes change. These changes are opening up new opportunities of which this is but one example.

Similarly, opportunities arose in the field of mathematics as hedge funds explored technology-based algorithmic modeling in quantitative hedge fund strategies.  Computer science took on new significance for hedge funds as they began to pursue automation and artificial intelligence, and, as we’ve just read, hedge funds have more recently opened the door to the writing profession.

How soon will hedge funds be demanding the services of SEO professionals, proofreaders, editors and social media experts? Hedge funds have survived through innovation and this invariably creates opportunities in the hedge fund industry for people with the most unlikely professional and educational backgrounds. Regardless of profession, if one keeps his ear to the ground, he may hear a hedge fund opportunity calling.

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Have you heard? In an effort to close the wage-gap between men and women in the workplace, New York City Mayor Bill de Blasio (D) signed an amendment to the New York City Human Rights Law. This law takes effect on Halloween. Commencing October 31, no employer may inquire into the salary history of prospective applicants.

Looking for a Hedge Fund Job in NYC?

It is impossible to predict how this provision will affect hedge funds and, more broadly, NYC employers. However well intentioned the law may be, there are certain to be unintended consequences, some of which may affect those pursuing a career in hedge funds and the hedge fund industry as a whole. After all, New York City is the hedge fund capital of the world, with over $1 trillion in assets under management, which equals about one-third of all monies invested in the industry.

This new piece of legislation should not deter anyone from pursuing their dream of a hedge fund job. It is easy to envision instances, in which no requirement for disclosure of one’s previous salary history could prove advantageous, particularly if the prospective applicant is trying to upgrade from a poorly negotiated compensation deal with his or her current employer.

It is also true that certain job seekers may be placed at a disadvantage if his or her salary history is not knowable. Fortunately, the law in question allows for the voluntary disclosure of one’s salary history. However, the existence of this law may cause hedge funds to err on the side of caution and eliminate any discussion of an applicant’s salary history as a matter of policy.

Salary Negotiation

The fine art of salary negotiation does not begin until an offer is on the table. Without a salary history as a starting point in these proceedings, prospective employers will need to develop a compensation strategy that relies almost entirely upon the value a given applicant brings to the firm so that a conclusion may be reached with regard to the upper limit of compensation.

At the same time, the applicant must formulate, in his or her own mind, an acceptable range of compensation. A positive outcome for both parties only occurs at the nexus of these numbers.

More than ever before, access to a trusted compensation guide, such as the 2017 Hedge Fund Compensation Report will prove to be an invaluable resource for both the job seeker and the prospective employer. Such a report provides applicants with the data necessary to make informed decisions with regard to the level of compensation offered by a prospective employer and provides the would be employer with a broad view of industry pay scales.

About Hedge Fund Jobs

The hedge fund industry continues its winning streak with 9 straight months of gains, the longest winning streak since the financial crisis. Hedge fund assets under management continue to climb and, although the number of hedge fund firms is in decline, the demand for talent is rising. The hedge fund industry is replete with opportunities for well prepared applicants…even in New York City!

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Investor Confidence in Hedge Funds Continues to Soar

September 18, 2017

Prequin reports the hedge fund industry has achieved gains in positive territory for 10 months in a row, with aggregate August gains of 0.97 percent. This is the longest streak of month-to-month gains since the financial crisis, and suggests the hedge fund industry has finally found its feet. Investors Are Taking Notice As has been […]

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Are You a Woman Struggling to Snare a Job in Hedge Funds?

August 21, 2017

Male portfolio managers outnumber women 20 to 1. This might suggest gender bias on the part of hedge funds. However, it might also suggest that women aren’t seeking this line of work. How can the facts be known? For example, 34 percent of doctors in the United States are female, about one in three. According […]

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What Career Paths Lead to a Job in the Hedge Fund Industry?

July 10, 2017

Contrary to popular opinion, earning an MBA will not necessarily earn you a spot in the hedge fund industry. According to the 2017 Hedge Fund Compensation Report, just 4 percent of those surveyed were hired by a hedge fund as students graduating with an MBA. This is not to minimize the value of an MBA in […]

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What Will Be the Upshot of MiFID II on Hedge Fund Jobs?

June 26, 2017

Just as the regulatory mists were beginning to dissipate under President Trump’s Sharpie and the House’s legislative action, a new fog is rolling across the financial sector—MiFID II. Although driven by European regulators, it cannot be ignored by any financial organization that engages the European markets, and this includes the hedge fund industry. What Is […]

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What Does an Analyst Do and What Do They Earn?

June 11, 2017

Although there are more than a few avenues leading to a job in the hedge fund industry, it can be argued that an analyst’s position is a typical entry-level position. Make no mistake; although the term entry-level often connotes the absence of a need for skills, education, prior experience or other attributes, this is not […]

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