Hedge Fund Analysts


Employment Prospects


Approximately 329,500 financial analysts are employed in the United States; only a small number work for hedge funds.

Hedge fund firms are located in nearly every state, but the states with the highest number of hedge fund managers (in descending order) include New York, California, Connecticut, Illinois, Massachusetts, Florida, and New Jersey, according to Preqin, which provides financial data on the alternative assets market,.

According to Pensions & Investments, the top hedge fund firms by AUM as of June 30, 2019, were:

  1. Bridgewater Associates
  2. Renaissance Technologies
  3. Man Group
  4. AQR Capital Management
  5. Two Sigma Investments/Advisers.

In addition to working at hedge funds, analysts are also employed by venture capital and private equity firms, in the wealth management industry, and by government agencies, insurance firms, and large companies. Some financial analysts are self-employed.

Starting Out

Thirty-five percent of hedge fund professionals surveyed in 2015 (the latest year for which data is available) by Benchmark Compensation, a financial data analytics firm, reported that they landed a job as a result of recruiters and job boards. Twenty-five percent cited personal contacts, followed by using one’s professional network (15 percent), previous employer relationships (9 percent), college career services offices (5 percent), and school alumni networks (2 percent). Seven percent of respondents founded their own firms.

Advancement Prospects

Hedge fund analysts who provide investment advice that results in strong profits for their firm receive bonuses and/or promotions. At a large firm that has a defined career ladder, an analyst can advance to the position of senior analyst after a few years of experience. Extremely skilled analysts can be promoted to head the research department, and eventually to the top investment job of chief investment officer. Some analysts move on to jobs as investment bankers, or transition to analyst positions with venture capital or private equity funds. Others become financial consultants.

Tips for Entry

Visit https://www.investopedia.com/articles/financialcareers/08/hedge-fund-career.asp to read 10 Steps to a Career in Hedge Funds.

Get certified. It will give you the edge over other applicants.

Visit the following Web sites for job listings:

  • https://www.caia.org/jobs
  • http://www.iaqf.org/job-board
  • https://www.mta.org/development/career-development-center