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11 Most Popular Hedge Fund Strategies

By | Career Insights | No Comments

It’s important to join a hedge fund with an investment strategy that fit you in order to have longevity in this career. Today we’ll go over the most popular hedge fund strategies. Let’s start with an overview of the hedge fund industry.

Hedge funds are private investment vehicles aimed to generate positive absolute returns for institutional clients and high-net-worth individuals.

Hedge funds are usually structured as partnerships. Portfolio managers are typically general partners of the fund with investment decision-making responsibilities. They hire research analysts to cover existing and potential investments, who are typically aligned by asset class (for example, debt vs. equity), industry (financials vs. consumer), and geography (emerging markets vs. U.S.).

The hedge fund industry has grown substantially over the past 2 decades and can no longer be considered a homogeneous asset class. There are estimated 9,000 hedge funds in the U.S. today with $2 trillion in assets under management.

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Detailed Explanation of the Hedge Fund Career Path

By | Career Insights | One Comment

The typical hedge fund career path begins 1 – 2 years post-college. Unlike large banks or asset management firms with comprehensive training programs, hedge funds are small, nimble operations with few resources to teach someone analytical finance from the ground up. Getting into a hedge fund straight out of college is difficult.

The traditional post-college career path to a hedge fund are investment banking and sell-side research. Both are great at giving you a solid foundation in company research and financial valuation, which involves analyzing company and industry trends, modeling and forecasting, valuation, and presenting your ideas in a clear, succinct way.

Besides investment banking and sell-side research, the next most common career path to hedge funds is management consulting. Consultants would get the same fundamental skillset for hedge funds, but with more emphasis on company and industry analysis over financial valuation.

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How to Find Your Investment Style

By | Investment Process | 2 Comments

If you are preparing for hedge fund interviews, I know the level of exhaustion and stress that you are going through. There are many technical questions to prepare for. Developing and presenting an investment pitch is time-consuming. On top of that, there’s a constant self-doubt of whether you are on the right track with your pitch. But first things first. Before you start your investment pitch, here’s a critical question for you to answer: what’s your investment style?

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