Career Definition of a Hedge Fund Analyst
Hedge fund analysts work on behalf of hedge funds. Their job is to determine the best way for the hedge fund to profit through investments. In order to do this effectively they need a clear understanding of the financial goals of their employer. They spend a lot of time investigating investment opportunities to determine how secure and profitable the investment will be. This involves reviewing business data and profit reports related to the investment options they're exploring. Part of their job involves maintaining a constant awareness of trends with businesses and investments.
Hedge fund analysts can recommend investment options based on their research. Hedge fund analysts will present their conclusions and recommendations to portfolio managers. The duties of the hedge fund analysts do not stop there. They are responsible for continuing to evaluate investments and identify any conditions that have changed that may indicate that their investments will not perform as expected. When necessary, they alert the portfolio manager to the need to withdraw investments in companies that are not meeting their performance expectations.
|Educational Requirements||Bachelor's degree|
|Job Skills||Analytical skills, research skills, attention to detail, mathematical skills, communication skills|
|Median Salary (2022)*||$92,599|
|Job Outlook (2020-2030)**||6% (financial analysts)|
Sources: *Glassdoor; **U.S. Bureau of Labor Statistics
It's possible to start out in an entry-level position as a hedge fund analyst with a bachelor's degree in a subject area such as finance. Experience will lead to opportunities for advancement and some may also consider earning a master's in business administration to develop their skills and be eligible for senior analyst roles. They may also opt to earn a license or certification after they have several years of relevant experience in this career field.
Hedge fund analysts must have the ability to conduct effective research so that they have all relevant data available when making recommendations about investments. They also rely on strong analytical skills to assess financial records and other pertinent information. They make projections based on investments so they need mathematical skills to perform calculations. They also need strong communication skills to effectively present information to portfolio managers.
Career Outlook and Salary
Hedge fund analysts are included in the U.S. Bureau of Labor Statistics (BLS) listing for financial analysts. The BLS provides data about expected job growth rates from 2020 to 2030. During this time the BLS anticipates the average growth rate for all occupations will be 8% while financial analysts will see a 6% job growth rate. Glassdoor provides information about the average income for hedge fund analysts. As of 2022, they earned $92,599 per year.
There are a number of careers that involve investments or evaluating investment options. Individuals considering a career in finance may wish to use the links listed here to learn about some careers that are similar to hedge fund analysts.