Hedge fund manager

What does it take to become a hedge fund manager? For example, do you have to have a diploma from Harvard MBA? What can a marginalized like me do to become one? Is CFA chardholder a good start?

You can start a hedge fund from your home like Tim Sykes. :)))

ymc Wrote: ------------------------------------------------------- > You can start a hedge fund from your home like Tim > Sykes. :))) Ha, should’ve known Tim would come into this. Oasys, there are no prerequisites and no exact career path. Some are self-taught traders, but not many (ie- Tim Sykes). The majority of them are traders or even analysts to the best of my knowledge. I don’t know about the future of the hedge fund industry- we might se a lot of firms closing shop- stricter regulations and recent not so stellar returns.

But what do you guys think is a hedge fund? Is it a fund for wealthy individuals as defined by Wall Street Warriors? Or a fund that hedges its risk using derivatives? Or some other definition?

From what I read, you need to be elite…top undergrad, top of your BB analyst program, top MBA as a prereq…It depends on the fund but if its a SAC/RenTech then you need to be a baller from the get go

I’m new to the finance world. But it seems that to become a hedge fund manager is one of the big dream a finance pros can achieve. Is that true? What other positions are considered ultimate goals for everyday finance newbies?

oasys Wrote: ------------------------------------------------------- > I’m new to the finance world. But it seems that to > become a hedge fund manager is one of the big > dream a finance pros can achieve. Is that true? > What other positions are considered ultimate goals > for everyday finance newbies? I wouldn’t call it a dream position b/c everyone has their own dreams. I know why most people would call it that though; b/c if you’re good you can make a SHITLOAD of money. But like I said no one’s certain on the future of hedge funds b/c of regulation. Now a days they’re a dime a dozen and on average the majority of them don’t perform well. Portfolio Manager- Manage a Mutual Fund, Pension Fund, etc. CIO (Chief Investment Officer) CFO- More corporate accounting and corp finance; now the majority of them have to be CPA’s Treasurer Managing Director, Associate- Investment Bank Trader Analyst

oasys Wrote: ------------------------------------------------------- > I’m new to the finance world. But it seems that to > become a hedge fund manager is one of the big > dream a finance pros can achieve. Is that true? > What other positions are considered ultimate goals > for everyday finance newbies? i’ve heard of “newbies” but sheesh. has the quality of questions really gotten this bad on AF??? you are the same person who asked if it’s helpful to send a resume along with a CV when applying for jobs. would you also like to know if the sun is hot? you know, i hate to be a-hole (ok, i dont), but based on your posts i would assign a .000001% chance of you getting a remotely decent investment-related job. maybe you should check out www.janitorforum.com

^That was a little harsh…but quite frankly, spot on. There are no “prerequisites” but how else are you going to raise Millions of dollars? Theres a reason why top business schools are essentally a place to network - so you can call your fromer classmates down the road. Yea, I guess you could start one at your own home but wheres your investment track record so you can attract somebody that isn’t a direct relative? How are you going to pay the lawyer, back office, a Brokerage firm, auditor, not to mention compliance consultant given today’s market?

jalmy8 Wrote: ------------------------------------------------------- > ^That was a little harsh…but quite frankly, spot > on. There are no “prerequisites” but how else are > you going to raise Millions of dollars? Theres a > reason why top business schools are essentally a > place to network - so you can call your fromer > classmates down the road. Yea, I guess you could > start one at your own home but wheres your > investment track record so you can attract > somebody that isn’t a direct relative? How are > you going to pay the lawyer, back office, a > Brokerage firm, auditor, not to mention compliance > consultant given today’s market? how did tim pay them?

If Timmy could do it then we all can, right frank?

FrankArabia Wrote: ------------------------------------------------------- > jalmy8 Wrote: > -------------------------------------------------- > ----- > > ^That was a little harsh…but quite frankly, > spot > > on. There are no “prerequisites” but how else > are > > you going to raise Millions of dollars? Theres > a > > reason why top business schools are essentally > a > > place to network - so you can call your fromer > > classmates down the road. Yea, I guess you > could > > start one at your own home but wheres your > > investment track record so you can attract > > somebody that isn’t a direct relative? How are > > you going to pay the lawyer, back office, a > > Brokerage firm, auditor, not to mention > compliance > > consultant given today’s market? > > > how did tim pay them? I agree, that guy was harsh- we all started somewhere and who knows this guy could be a freshman college student. Even if he’s not, I don’t mind answering basic questions b/c finance is something I enjoy talking about. But anyway Tim runs a VERY small hedge fund, he’s the only employee so I’m sure all his administrative legal fees are minimal. The fund is only approx 2-4 Mill (prob around 3) and he started shorting small/micro cap stocks in the tech blowup. He turned 12-15kish into 2 Mill…he then was bombarded by friends and family asking him to do the same for them so he started his own hedge fund. I’m sure he paid these fees out of pocket being that they were minimal for him.

commstudent Wrote: ------------------------------------------------------- > From what I read, you need to be elite…top > undergrad, top of your BB analyst program, top MBA > as a prereq…It depends on the fund but if its a > SAC/RenTech then you need to be a baller from the > get go This is just silly. Most of the top managers today were never in the IBD, and many (most?) don’t have MBAs. Having a BB on your resume is certainly helpful, though. Rentech hires almost no one from Wall Street, it’s all CS/math/physics people. Read on: http://www.nytimes.com/2007/09/16/business/16mba.html?_r=1&hp&oref=slogin “But what do you guys think is a hedge fund? Is it a fund for wealthy individuals as defined by Wall Street Warriors? Or a fund that hedges its risk using derivatives? Or some other definition?” This is the most important question here - I a feeling not many people here could answer it correctly. I’ll give you a hint, the answers to your questions are yes, yes, and yes.

> FrankArabia Wrote: > I agree, that guy was harsh- we all started > somewhere and who knows this guy could be a > freshman college student. Even if he’s not, I > don’t mind answering basic questions b/c finance > is something I enjoy talking about. frank, there’s “just starting out,” and then there’s asking jaw-droppingly dumb questions. this is one of the single most competitive industries on earth, and oasys isnt sure whether to include a resume along with a cover letter, yet wants to know how to “become a HF manager.” we have this idiot intern at my firm right now (long story); he’s dumber than a rock. thursday at lunch he asked: “since companies have buyback programs, do companies ever buy back all of their stock? if so, are they still public?” our president said “that’s the stupidest question i’ve ever heard. i’m not even going to bother answering it.” so i’m around that all day, which is why i’m harsh when it comes to this stuff. and i’ve interviewed far too many dipshits who claim that working at a HF is their one true calling in life, but they’ve done nothing to show it…they’re all talk, no action, and cant even answer the most basic of questions. look, my only point is that you can tell a lot about a person by the questions they ask. given the quality of his questions, oasys should just find another career aspiration. stop giving newbies a bad name…yes i was there myself once. besides, it’s clear he has zero actual interest in finance…he probably simply sees the money and perceived sexiness of hedge funds and says “me too.” because if he had a genuine interest in this stuff, he wouldve figured out these basics on his own already.

Ass-u-ming you’re serious: Think about it… You want people to give you money so you can manage it for them. What do you think you’ll need? You’re correct… a t-shirt that says “Hedge Fund Manager” and an office are a good start… After that you might want to look into experience managing as asset class within a firm that has produced good numbers. Academics are a good idea too. And most importantly, a stapler.

wegowayback, your president is an a-hole and doesn’t deserve a shred of respect if that’s how he treats people, especially kids.

kkent Wrote: ------------------------------------------------------- > wegowayback, your president is an a-hole and > doesn’t deserve a shred of respect if that’s how > he treats people, especially kids. whatever. let me explain why i get all hot and bothered with these threads. the story i mentioned that you’re referring to regarded a 24 year-old who i’ll call pete. pete hasnt been holding up his end of the whole “employment” thing. despite being an english major and having a brutal resume, pete insisted that he wanted to do equity research and had been independently studying accounting/finance/etc and applying to a local business school. he seemed clueless but talked a big game so he got hired. pete’s got a good job - he’s an equity research analyst at a small hedge fund with a long, impressive history. this is an awesome opportunity, and one that he would almost never have gotten anywhere else. despite this, he has essentially done nothing since starting. he has a terrible work ethic, he doesnt understand anything, nor does he make any legitimate attempt to understand it. he is completely wasting this chance…just pissing it away. ok, so why does all this bother me? because i come read AF every once in a while and i see a lot of posts by people who are continually trying to move out of ops/marketing/IT/college and into some kind of front office investment job. and a good amount of these posters seem sincere about it - they’re doing the CFA, they follow the markets, the read the wsj, etc. they’re doing their homework and appear, rightfully so, to be extremely frustrated by the difficulty of breaking into the biz. but most of all, they would KILL to get the job that pete has. they KILL for this opportunity, and i feel bad that they get shafted while guys like pete waste time and space. (dont bother asking why pete still has a job, it’s a long story) i mean, if i were to start a thread saying, “we have a job opening for an analyst. no experience required, email me your resume” how many responses would i get? 100? 500? 1000? these opportunities are so few and far between, and it pisses me off to see a moron like pete occupying one of those coveted slots, when there’s a bunch of much better candidates out there who mean what they say. so oasys just reminds me of pete i guess, and that’s why i slammed him. oasys just doesnt get it. and my boss doesnt go around treating everyone like that. he slammed pete because he deserved it.

"(dont bother asking why pete still has a job, it’s a long story) " I’d love to know :slight_smile:

Me, too! :slight_smile:

wegowayback, well, if “pete” is so stupid, as you say (and I have no reason to not believe you), then the problem is with your firm in hiring him and keeping him on. Sounds to me like he has some internal connections (e.g. his dad runs the shop).