Given the unique areas of expertise required of hedge fund managers, the industry is amongst the most lucrative in the financial services field. It is not uncommon for successful traders to earn in excess of $500,000 a year, the bulk of which is culled from the investment and management fees that deal successful managers the share of their client's profits. The typical hedge fund manger retains 20% to 25% of the profits he or she generates in a given year (the aforementioned investment fee, also known as carried interest), in addition to the 1% to 2.5 % per annum management fee that is typically collected monthly or quarterly. Compensation is ample on both ends of the spectrum for hedge fund jobs. Some of the best managers in the field have been known to collect up to 50% of their client's profits, while newly hired employees at some of the world's largest firms, such as Morningstar Altvest, Barclay Hedge or Eurekahedge, can look forward to starting salaries in excess of $250,000, not including bonuses for fund performance. Moreover, well-regarded firms that find themselves in high demand can literally name their own fees, rates of compensation and bonuses with virtual autonomy.
The generous salaries doled out by hedge funds make positions in the industry highly desirable, yet intensely competitive. Among recent business school graduates, they are among the most sought after jobs in the world of finance -- not only for their monetary rewards, but also for the cachet and industry insights they offer as well…and for good reason. For already established professionals in the field, experience with the multifaceted nature of hedge funds continues to be the predominant factor for those who succeed in leveraging their way up the ladder of private risk management and into a choice hedge fund position.
That being said, the demand for hedge fund workers continues to grow because the brains behind the industry are always scouting new modes of profitability not available through traditional investments. As the industry's list of financial strategies diversifies itself with an ever-growing assortment of high-risk, conservative and middle of the road tactics to bring in that much sought after high return, hedge funds will open themselves to an even wider pool of potential investors who may have never before considered them a viable option.
David Kochanek is the Publisher of Job Search Digest and its related services. He brings 20 years of professional experience including client management with a top 10 consulting firm, and executive recruiting. Mr. Kochanek is a graduate of the School of Economics from Albion College. For more information contact Mr. Kochanek at publisher@jobsearchdigest.com.
