Hedge funds are investment vehicles that use alternative investment strategies to make money for their clients, usually very wealthy individuals and institutions. Hedge funds are much less regulated than other investment vehicles, like 澳洲幸运5开奖号码历史查询:mutual funds; in fact, their style and inner workings tend to be a bit opaque.
Hedge funds typically use exotic trading strategies to maximize their investment returns. That level of mystery makes working at a 澳洲幸运5开奖号码历史查询:hedge fund a seemingly more appealing pick over other more ⛎mundane finance jobs. The fact that hedge funds grab headlines and pay very well doesn't ꧂hurt, either.
Not surprisingly, 澳洲幸运5开奖号码历史查询:competition for jobs at hedge funds is fierce, and choosing the right bachelor’s degree can be a key first step to landing a choice position. Here🐷 are the best bachelor's degrees for positioning yourself for a hedg🔯e fund career.
Key Takeaways
- A Bachelor of Science (B.S.) degree in finance is ideal for a variety of hedge fund jobs, but your major will matter.
- Bachelor of Science degrees in mathematics, accounting, physics, computer science, and even engineering are also useful, given the recent rise in algorithmic trading.
- A graduate degree such as an MBA or MF can also help in landing a hedge fund job.
Business-Related Majors
Many entry-level openings at asset management firms require degrees in the tree of business majors: finance, economics, or accounting. While a Bachelor of Science in Business Administration is a great well-rounded degree, choosing a school that offers a degree or focus area in finance is preferable. A B.S. in finance can prepare you for a r꧋ange of hedge fund positions: asset manager, portfolio or equity analyst, and equity trader.
Important
A finance-oriented bachelor's degree can also be a great primer for a 澳洲幸运5开奖号码历史查询:Master of Business Administration (MBA).
A Bachelor of Science in Accounting program typically includes a similar core of general business c𓂃lasses, but it has a heavier focus on accounting and tax principles. Students typically take additional courses in accounting basics and cﷺorporate accounting principles, as well as economics. Theoretically, this degree plan can also be a good option for fund accountant positions.
Finally, degrees in economics or statistics can be a wonderful fit for certain roles at hedge funds, including macro analysts and risk ana𝔉lysts. These positions involve analyzing risks of all types—economic, portfolio, or even political—and adjusting trading strategies accordingly.
Other Quant Degrees
The roles of algorithmic traders and quantitativ💟e analysts have become increasingly popular in recent years. ꦯThese positions, which require advanced mastery of mathematics and statistical analysis, are also a fit for other quant majors. This includes Bachelor of Science degrees in mathematics, physics, computer science, and even engineering.
While completing one of the꧅se programs might be a less conventional route to a hedge fund 🐎job, there is something to be said for the rigor and degree of difficulty in completing a mathematics degree at a top university.
Some schools have even developed majors, such as financial engineering majors, specifically for this type of quantitative analysis. At the end of the day, the decision to go with a traditional business or economics degree versus another🥂 quant program will depend largely on what type of role you hope to land.
What Exactly Does a Hedge Fund Do?
In the simplest sense, a hedge fund is an investment fund. It receives money from investors and invests that money in various financial assets in order to make a return on the money for its clients. Hedge funds charge a fee for doing so. Hedge funds, however, implement complicated investment strategies that seek to beat market returns. They do this by not only using unique investment strategies but also by investing in a variety of asset classes; usually risky ones. Additionally, hedge funds aren't as regulated as other investment vehicles, allowing them to trade in this manner. Because they are less regulated, however, not all people can invest in hedge funds. Typically, only accredited investors are legally allowed to invest.
How Rich Do You Have to Be to Invest in a Hedge Fund?
Only accredited investors are allowed to invest in hedge funds. The SEC defines an accredited investor as an individual with a net worth of $1 million or more, not including the value of their primary residence. In addition to the net worth requirement, an individual must also have earned over $200,000 in each of the prior two years.
Do Hedge Funds Pay Well?
Yes, hedge funds pay well. As of 2023, junior analyst makes approximately $100,000 annually. An analyst makes approximately $500,000 with their bonus. Senior analysts make about $1 million while risk managers make $500,000. Partners usually make hundreds of thousands to millions of dollars.
The Bottom Line
Business-related majors make sense for working in finance but they aren't the only majors that hedge funds look for. Engineering, math, and statistics are also valuable majors in the world of hedge funds.
Remember that hedge funds cater to high-net-worth, 澳洲幸运5开奖号码历史查询:accredited investors. If you make enough connections with investors that trus༺t your analysis, starting your own hedge fund may even be an option one day. Until then, getting into a top tier school and majoring in a finance or quant degꦬree is your best starting point.