How to become a hedge fund analyst
Hedge fund analysts play a critical role in identifying new investment opportunities that meet a hedge fund's mandate and strategy. Discover what hedge fund analysts do and what steps you need to take to become one.
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What does a hedge fund analyst do?
A hedge fund analyst generates and evaluates new investment prospects, considering changes in economic trends, government policy, and political climates. They also support portfolio managers by preparing reports and recommendations on existing and potential investment opportunities.
Key skills
Business analytical skills, technology proficiency, communication skills, critical thinking, and math skills are all important for succeeding as a hedge fund analyst.
Workplace settings
Hedge fund analysts mostly work in offices but also may travel to meet with companies or clients. You can expect to work more than 40 hours weekly for a large hedge fund firm.
Steps to become a hedge fund analyst
There is not one set path to become a hedge fund analyst. It takes a combination of formal education, relevant experience, and expertise in different areas.
Many aspiring hedge fund analysts follow these common steps:
Step 1: Earn a bachelor's degree
Many entry-level positions require a bachelor's degree. Hedge fund firms prioritize graduates with a bachelor's degree in business, finance, economics, or a similar field.
Some firms prefer to hire candidates with a master's degree, particularly for positions that aren't entry level.
Step 2: Do some networking
Once you nail down some specifics as to what geographic location and what type of hedge fund you would like to work for, it's time to network.
Contact any university alumni working at your preferred firms. Use websites such as LinkedIn to both tailor a profile for hedge fund employment and to contact people who may help you get a foot in the door.
Step 3: Obtain your license
A license is mandatory for selling many types of financial products. This may apply to hedge fund analyst positions.
The Financial Industry Regulatory Authority (FINRA) is the organization charged with providing licenses in the securities industry. Most licenses issued by FINRA require sponsorship from an employer. While this step is required to work as a hedge fund analyst, it can sometimes be completed during the onboarding process.
Step 4: Become certified (optional)
Once you have earned your bachelor's degree and have several years of experience, you may wish to get certified. One common certification is the Chartered Financial Analyst (CFA) offered by the CFA Institute. This involves passing three exams that are estimated to require roughly 300 hours of study each, but completing the certification may open new doors in your career.
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Fuel your passion for growing a hedge fund portfolio by pursuing relevant degree programs, obtaining your securities license, and earning certifications. Explore edX's online finance courses today to begin your journey.