By: Brandon Msimanga
One might consider Hedge Funds and Hedge Fund management to be risky business which begs to differ why anyone would find a job at a Hedge Fund to be an appealing prospect. However when it comes to working at Hedge Funds the high risk does come with an unusually high compensation in the form of a very attractive monthly pay cheque.
Hedge Funds are scooping up the Ivy League grads who are the cream of the crop when seeking to recruit for any business or industry. The most successful Hedge Funds employ people from a variety of backgrounds like business, mathematics and engineering. In most cases Hedge Funds employ candidates that have recently obtained an MBA from a reputable business school and in some very rare instances a Hedge Fund will employ a recent graduate. A placement report review was conducted of universities like Chicago, Columbia, Harvard Business School and Stanford which revealed that there was a high amount of people with MBA’s being hired in 2007 and 2008 although this was forecasted to decrease over time.
The skills required for employment in a Hedge Fund are very similar to those required by an exchange like the Johannesburg Stock Exchange, brokerage firms, banks and other financial institutions. Knowledge and understanding of the financial markets is required as well as an understanding of how the Hedge Fund industry works. In the Hedge Fund industry it is important to have very good technical skills particularly valuation and modelling. It is also important to be able to recommend investment decisions based on your own analysis.
Hedge Fund recruiters are also interested in other aspects of a person apart from having an excellent education and a good technical background the Hedge Fund is also interested in whether a potential employee has done his or her own personal research on the Hedge Fund industry. The recruiter will be even more impressed if the candidate has a great amount of knowledge and understanding of the firm that he or she is applying at and how it operates as well as the kind of investments that it undertakes. A candidate must have also done a good amount of networking within the Hedge Fund industry such as at various seminars or conferences where people of similar interests and background can be found. Networking shows the recruiter that the candidate is not only outgoing but also has good social and interpersonal skills which are skills that become very crucial when negotiating deals and talking to clients.
Internships that involve doing research for Hedge Funds and Hedge Fund start-ups that are always looking for help is also a great way of gaining some industry knowledge. There is a lot that can be learned by even conducting small tasks during an internship. One can get a great amount of exposure through this great opportunity to learn. It is best to work on site if possible however opportunities to work remotely should not be passed off. By conducting research on a variety of topics such as the various strategies used by Hedge Funds a lot can be learned by an individual about Hedge Funds. Internships offer a great learning experience that can only improve the chances of a candidate getting employed by a Hedge Fund this is another aspect that Hedge Fund recruiters look at when considering applicants for employment.
Hedge Funds consider a great a variety of attributes, skills and knowledge when employing one of the main reasons is because are very small and generally do not have a high number of employees. Having the right kind of background in terms of education is also a factor that Hedge Funds hold very highly when employing. Hedge Funds have recently become the top employers on everyone’s lips the world over.