How to Get a Job at a Hedge Fund

“Don’t apply to a Hedge Fund - without reading this”

So, you’ve heard the buzz: hedge funds are where the big brains go to make the big bucks. But the big question is—how do you break in?

Let’s keep it real: Hedge funds used to feel like an elite club. You needed an Ivy League degree, a double PhD in math and physics, and a secret handshake (probably). But times have changed. The doors are opening wider especially for people who understand algorithmic trading and machine learning.

Yep, algo trading + ML is your golden ticket.

What Even Is a Hedge Fund?

A hedge fund is basically an investment firm that uses advanced strategies—like short selling, leverage, and algorithmic trading—to generate high returns. They’re the Navy SEALs of the financial world: fast, elite, and always looking for their next big edge.

Fun fact: Renaissance’s Medallion Fund reportedly averaged 66% annual returns for decades. Crazy, right? That’s the kind of wizardry you’re signing up for.

And today, that edge is data—huge amounts of it. Which is why hedge funds are obsessed with people who understand machine learning and algo trading.

The 5 Most Common Quant Roles at Hedge Funds

Before you go job-hunting, it helps to know what major quant roles are out there:

1. Quantitative Researcher – Builds mathematical or ML models to predict markets. Typical salary ranges: Base salary: $150,000 - $325,000 + Performance Bonuses Read more →
2. Quant Developer – Turns trading ideas into working, scalable code. Base salary: $150,000 - $250,000 + Bonuses. Read more →
3. Quant Trader – Executes trades via code, often using ML-driven strategies. Base salary: $125,000 - $300,000 , total compensation - Highly variable, depends heavily on P&L (profit and loss), can range from $150,000 to millions. Read more →
4. Data Scientist – Uses machine learning to extract insights from alternative data.  Base salary: $100,000 - $275,000. Read more ->
5. Risk Analyst – Builds models to measure and minimize portfolio risk. Base salary: $80,000 - $250,000. Read more->

Salary Source : https://www.cqf.com/blog/quant-finance-salaries-and-compensation-us-2024

Glassdoor Links- Quant Research, Quant Developer, Quant Trader, Data Scientist, Risk Analyst

Few Top Hedge Funds

Here are some top hedge funds that hire quants:

Few Top Hedge Funds in the US. (For larger coverage read here)

Source: https://hedgefundalpha.com/great-money-managers-of-2024-lch-investments/

Here is a List of High Frequency Trading & Proprietary Trading Firms in India, US, UK, Singapore & UAE. See List ->

What does a typical hiring process for a hedge fund look like (For Freshers)?

1. Resume shortlisting / Referrals / Campus Hiring
2. Online Assessment Test (Role Specific Tests)

3. Technical Interview Rounds - You'll be asked to:

• Solve coding or math problems live (e.g. Leetcode-style + probability)
• Explain a past project or model you’ve built
• Discuss financial concepts or market events

4. Take Home Assignment - Especially common for:

• Quant researchers – e.g. build a factor model
• Quant devs – build a mini backtesting engine
• Data scientists – analyze a noisy dataset
• Risk analysts – mock risk report or stress testing scenario

They're testing how you think, code, and communicate insights—not perfection.

1. Follow up Interviews with Hiring Managers/ TLs / Traders / Portfolio Managers / HR
2. Deeper problem-solving (brain teasers, system design, strategy logic)
3. Finance acumen check: “How would you hedge a portfolio?”, “What is VaR?”
4. Explain how will you check cointegration between two Time Series
5. Behavioural questions: “Tell me about a time you failed”, “How do you handle ambiguity?”

Jack up, let's get you ready?

Here’s your step-by-step game plan—even if you’re starting from scratch:

1. Learn to Speak the Language (Python, Machine Learning, and Markets)

Want to impress a hedge fund recruiter? Show them code—and models. Python is the lingua franca of both algo trading and ML. Combine that with frameworks like scikit-learn, XGBoost, or even deep learning tools like TensorFlow, and you’ll stand out.

🧠 Fun Fact: Around 39 % of hedge funds jobs advertised on eFinancialCareers.com demand Python and majority of funds are experimenting with machine learning models.

2. Build an ML-Powered Trading Strategy

Think machine learning is just for Silicon Valley? Think again.

Here’s a basic idea you can try:

• Predict stock returns using a Random Forest model.
• Feed it features like moving averages, volatility, or volume spikes.
• Use your model's predictions to make trades.

Now backtest it. Tweak it. Make it better.

You don’t need Wall Street access—you just need a laptop, a dataset (hello, Yahoo Finance API), and a curious brain.

Here is a detailed webinar covering  Machine Learning models generating trading signals. Watch here ->

3. Show Off Your Projects

Hedge funds care about what you can build, not just what you know. Upload your ML trading projects to GitHub. Write about them on LinkedIn or Medium. Show how you cleaned data, trained a model, and improved performance.

This is your portfolio. It’s a turbocharged version of your resume.

Ready-to-implement project work done by EPATians on real-markets data in Artificial Intelligence, Statistical Arbitrage, Sentiment Trading, Crypto Currency and more. Read more ->

4. Get Mentored and Structured Learning

You can learn everything on your own—but it takes longer, and trial-and-error can be brutal. That’s why a structured, industry-grade algorithmic trading + machine learning course can fast-track your journey.

You’ll not only learn the tech, but also the mindset of a quant: how to handle uncertainty, optimize strategies, and deal with real-world noise.

“But I don’t have a formal education in python / ML / algo trading ”

Perfect. You don’t need to.

Now, you don’t need to be a tech genius to start. I once met a guy, Mike, who was a history major with zero coding experience. He took an algo trading course, learned Python basics, and built a simple trading model that impressed a recruiter at a small fund. Six months later? He was in. True story. The lesson? You don’t need a PhD—just a willingness to learn and a course that breaks it down simply.

What matters is not where you came from—but what you can do now.

Here is  a small use case of code and automate trading strategy in  Python →

Ready to Make Your Move?

If you’re serious about breaking into hedge funds—or just curious to see if you’ve got the brain of a quant—specially designed courses by Quantra & Executive Programme in Algorithmic Trading (EPAT) are built to help you:

• 👨‍🏫 Learn from real hedge fund professionals
• 🧠 Master Python, backtesting, and real ML models for trading
• ⚙️ Work on hands-on trading projects
• 🚀 Get support with portfolios, placements, and interviews

📩 Join our next live cohort and start turning your curiosity into a career.

Button/Link: “Download Syllabus / Join Next Cohort”

Recommended reads :

1. A more detailed blog post on learning algo trading - link
2. References of past success stories -link

Want help choosing your first ML project or trading strategy? Hit reply—we’ll brainstorm with you.

Connect with an EPAT career counsellor to discuss the right quant role for your background.