Do you want to make money on wall street as a successful hedge fund manager? If YES, here are 7 easy steps to become a professional hedge fund manager.
You might want to ask, who is a hedge fund manager? A hedge fund manager is someone who is shouldered with the responsibility of calling the shot and managing various investments portfolios in the hedge fund sector.
The few hedge fund managers we have globally are fast becoming celebrities because of the rates at which they make huge cash helping people manage and invest their pool of cash. You can hardly pick up a business related magazine without reading about hedge funds and those who manage it; this is to tell you how important they are in the business world.
N.B-: This article was culled from: “The Complete Guide to Starting a Hedge Fund Company from Scratch.”
Hedge fund involves large amount of cash and it is known to be a very high risk venture. Hence, whoever chooses to manage it must not just have solid investment background, but must also know how to handle risks. The truth is that if you are not grounded in these areas as a hedge fund manager, you may likely throw away peoples’ monies and investment.
That is why it’s often said that you don’t learn the ropes with hedge funds; rookies hardly survive managing hedging funds without first cutting their teeth elsewhere. If you truly desire to become a hedge fund manager, then the following sure fire tips would help you achieve your goal.
7 Easy Steps to Become a Successful Hedge Fund Manager
1. Get Relevant University Degrees
In the quest of becoming a hedge fund manager, the first thing to do is to obtain a good university degree in finance related courses or in Economics .Adding Masters Degree in Finance or Economics and a MBA will position you to start and grow in the hedge fund industry. Truly you can never under estimate the doors a good degree could open for you. Therefore you must be ready to go all the way.
2. Get the Necessary Certifications
Since managing hedge funds is not for beginners, you would be required to get certifications in investment, and public accounting. The truth is that becoming certified gives your clients who most often are accredited investors the confidence to give you their money to manage for them. This is because they feel comfortable and safe with certified and trained experts.
3. Get Relevant Working Experience
Obviously, you can’t come out of the university and land your first job as a hedge fund manager just like that. In the hedge fund sector, you must have first cut your teeth in a similar industry like the mutual fund before you can be considered for employment. Thereafter, you are expected to grow into becoming a hedge fund manager. Managing hedge fund is a serious and highly risky venture, so no one would be allowed to use only theoretical knowledge acquired from University to run it.
If your long term goal is to become a hedge fund manager, then you should start putting finishing touches and perfecting your investment strategies. Experience has shown that most often what is workable on papers might not fly in the real world.
So what you need to do is to try out different investment strategies with your personal cash or the cash of your family members. Doing this will enable you know firsthand what works, what doesn’t work and what areas in your strategy might need to be worked on.
5. Perfect Your Risk Management Strategy
The Hedge fund sector is indeed a lucrative sector and at the same time it is also very risky. One of the attributes accredited investors and other investors alike look for before giving their cash to manage is your ability to understand and know how to handle risk.
Nobody will give their cash to manage if you don’t have a good record when it comes to managing risk no matter the returns you promise on their investment. Becoming a hedge fund manager means that you would have taken time to perfect you risk management skills.
To be able to generate pool of cash for investment as a hedge fund manager requires that you must have what it takes to market your investment strategies to accredited investors, non accredited investors and family members. Your skill to convince people to drop their cash with you for the sake of investment is a major requirement for any aspiring investor.
What is the use of becoming a hedge fund manager without adequate fund to manage? Statistics shows that hedge fund managers, who fail, do so due to their bad investment strategies.
7. Perfect Your Managerial and People’s Skills
Let’s be factual here, no matter how perfect you appear to be, there will be time when things might not work as planned. So also, there are times when your investment could go wrong despite carrying out all the risk assessments to the later. When investment fails, there is likelihood for you to run out of cash and not be able to pay your employees for that period. There might also be the possibility for your client to lose confidence in you.
In situations like this, bringing your managerial and people’s skills to the fore can help you salvage things. The truth is that you don’t need to wait for such period before you perfect these skills; the best time to start is when you conceived the idea of becoming a hedge fund manager.
Study the above tips critically, read other relevant information you can get as regards hedge fund, and then you will be on your way to becoming a successful hedge fund manager. No doubt that with some hard work, consistency and a bit of luck on your side; you could earn your place amongst the much celebrated and rich hedge funds managers that exist.