Alternative Investment / Hedge Fund

The Hedge Fund industry has grown at a ferocious pace in the last decade, from as few as 300 funds in 1990 to more than 8000 today.  The funds have become highly visible in markets and press, and are today estimated to manage up to 1 trillion in capital.

A Hedge Fund usually invested in by wealthy individuals and institutions, is allowed to use aggressive strategies that are unavailable to mutual funds, including selling short, leverage, program trading, swaps, arbitrage, and derivatives.  Hedge Funds are exempt from many of the rules and regulations governing other mutual funds, which allows them to accomplish aggressive investing goals.  They are restricted by law to no more than 100 investors per fund, and as a result most Hedge Funds set extremely high minimum investment amounts, ranging anywhere from $250,000 to over $1 million.  As with traditional mutual funds, investors in Hedge Funds pay a management fee; however Hedge Funds also collect a percentage of the profits (usually 20%).

Finding work in a Hedge Fund, particularly as a recent graduate, is difficult.  They often employ no more than 10 or 20 people and tend to outsource their operations functions.  Another, and perhaps better, route is to start in Investment Banking and move into a Hedge Fund later on.  Ideal candidates would have in-depth, experience of Fixed Income, Equity or Structured Derivatives Middle Office/Trade Support.