In terms of the types of careers available, the financial services industry casts a wide net. Hedge funds, which are investment vehicles with some of the least stringent regulations in the industry, manage large sums of money for institutions and wealthy families. Before making decisions, fund managers rely on layers of support ranging from analysts to risk control specialists. In addition to gaining industry experience, becoming a hedge fund analyst necessitates a successful education and possibly certification.
To become a hedge fund analyst, concentrate on getting a good college education. Academic performance is important to investment firms, but so are the majors that students pursue. Degrees in finance, accounting, or economics are ideal for a career in financial services. Depending on the level of seniority the analyst job carries, some certification, such as chartered financial analyst (CFA) recognition, may be required. With more industry recognition and certification, an analyst can expect to advance further.
Hedge funds place a premium on industry experience in certain sectors of the financial services industry. Some career paths are better suited to pursuing a career as a hedge fund analyst than others. Hedge fund management, for example, falls under the category of alternative asset management, as opposed to traditional money management, which often lumps mutual funds together. Experience in another area of alternative management, such as at a private equity or real estate firm, may improve your chances of landing a job as an analyst at a hedge fund.
Hedge fund managers use highly sophisticated and risky trading strategies in the markets. When making trades, many people use leverage or debt to increase their profits. Some people try to profit from developments in the capital markets, such as mergers and acquisitions. At the very least, you should be able to contribute to a specific strategy if you want to work as a hedge fund analyst. Managers rely on financial analyst research to find investment opportunities and identify economic shifts.
To work as a hedge fund analyst, you may need to live in or near a major city or financial center. Top investment firms are frequently found near other financial institutions in major financial districts. Investment management is a highly competitive industry, and being in a major city makes it easier to network and attend industry conferences, seminars, and meetings with other professionals and clients.