Hedge Fund Salary Guide
This hedge fund salary guide covers several jobs in the hedge funds sector and their corresponding midpoint salaries for 2018. A hedge fund firm is involved with managing investment fundsFund of Funds (FOF)A Fund of Funds (FOF) is an investment vehicle where a fund invests in a portfolio composed of shares of other funds rather than investing directly in stocks, bonds or other securities. The strategy of investing a fund of funds aims to achieve broad diversification and asset allocation that are created for accredited individuals and institutional investors to maximize returns while eliminating risks, no matter what the market’s status is.
A hedge fund is a private investment partnership between investors and the fund manager. Unlike mutual fundsMutual FundsA mutual fund is a pool of money collected from many investors for the purpose of investing in stocks, bonds, or other securities. Mutual funds are owned by a group of investors and managed by professionals. Learn about the various types of fund, how they work, and benefits and tradeoffs of investing in them that are heavily regulated by the Securities and Exchange Commission (SEC), hedge funds are operated with little to no regulation.
Hedge Fund Salary Guide – Jobs in the US
Many aspire to be part of the fast-paced and exciting hedge funds sector. Candidates with internships or experience with risk management, prime brokerage, or administration of hedge funds can access career opportunities in the sector. Asset management firms and hedge funds, as well as lending companies and commercial banksTop Banks in the USAAccording to the US Federal Deposit Insurance Corporation, there were 6,799 FDIC-insured commercial banks in the USA as of February 2014. The country's central bank is the Federal Reserve Bank, which came into existence after the passage of the Federal Reserve Act in 1913, look for professionals who are also experts in credit analyticsCredit RiskCredit risk involves managing the creditworthiness of all entities a firm lends to, including bondholders. Credit risk is the risk of loss that may occur from the failure of any party to abide by the terms and conditions of any financial contract, principally the failure to make required payments on loans, data analytics, and risk and compliance. Firms may prefer candidates with relevant qualifications such as Level 1 Certified Hedge Fund Professional.
Hedge funds jobs vary since firms use different strategies and instruments. Such jobs include hedge fund analyst, hedge fund accountant, risk analyst – hedge fund, associate, and director.
Hedge Fund Salary Guide in the US for 2018
Salaries in the hedge funds sector vary depending on years of experience and position. The table below shows the hedge fund salary guide for candidates with average experience and skill sets needed for the job. The figures do not include bonuses, incentives, and other forms of additional compensation. From hedge fund analyst to vice present, the range can be quite large.
| Job Title | Base Salary |
|---|
| Hedge Fund Accountant (1 to 3 Years) | $48,000 |
| Hedge Fund Accountant (3 to 5 Years) | $62,250 |
| Hedge Fund Accountant - Manager | $75,000 |
| Intern/Summer Analyst | $76,000 |
| Analyst | $101,000 |
| Associate Year 1 | $110,000 |
| Engineer/Quant | $134,000 |
| Associate Year 2 | $136,000 |
| Director | $149,000 |
| Vice President | $216,000 |
Additional Resources
Thank you for reading CFI’s hedge fund salary guide. To learn more about hedge funds, investment pools, and trading practices, and we highly recommend these additional free resources:
- 2 and 20 (Hedge Fund Fees)2 and 20 (Hedge Fund Fees)The 2 and 20 is a hedge fund compensation structure, and it includes a management fee and a performance fee. In such case, 2% represents the management fee (flat rate fee) of the total assets under management, and the 20% represents the performance fee charged on the value of profits that the hedge fund generates
- Hedge Fund StrategiesHedge Fund StrategiesA hedge fund is an investment fund created by accredited individuals and institutional investors for the purpose of maximizing returns and reducing or eliminating risk, regardless of market climb or decline. Hedge fund strategies are employed through private investment partnerships between a fund manager and investors
- Private Equity vs Hedge FundPrivate Equity vs Hedge FundCompare private equity vs hedge fund in terms of investors, risk, liquidity, time horizon, compensation structure, careers and more pros and cons of each. There are several important points to know about the similarities and differences of private equity vs hedge fund.
- Sales and TradingSales and TradingSales and Trading (S&T) is a group at an investment bank that consists of salespeople, who call institutional investors with ideas and opportunities, and traders, who execute orders and advise clients on entering and exiting financial positions. Sales and trading is the lifeblood that makes or breaks a securities firm
