In the financial circles, a hedge fund manager belongs to a higher plane of fund overseers. The term can denote an entity or a person that manages a portfolio of assets. Since a hedge fund is different, if not distinct from other managed funds, the functions of hedge fund managers are bigger in scope.
In addition to the ton of responsibilities, their primary objective is to deliver not just returns but the highest possible returns regardless of the market environment.
The role of a hedge fund manager
A hedge fund manager is not your typical fund manager. The expertise is not limited but spread out across the entire investment universe. Wherever there are opportunities, expect the hedge fund manager to be present.
Basically, a hedge fund manager has the skill to look for the ‘gold’ or needle in a ‘mountain of investment’ or the haystack. What sets them apart is their aptitude to spot profitable investments.
The 3 common misconceptions about a hedge fund manager
People look up to hedge fund managers. Many think that these managers can do magic with money or pull a rabbit out of a hat. That’s a common misconception. To put it in the proper perspective, here’s a list of things unknown about a hedge fund manager.
No such thing as luck
When market conditions are favorable, everyone benefits. On the contrary, a market downturn sends panic to investors. That’s the psyche of the market and has nothing to do with luck.
The hedge fund manager focuses only on meaningful investment opportunities regardless of market conditions. There is no luck component whatsoever or room for second guesses. It entails judicious work and determined effort before reaping the harvest.
Multi-tasking is part of the job
A hedge fund manager does not sit idly. Every waking moment is about seeking investment prospects and crafting investment plans. The day is always full and toxic.
Long hours are invested studying and analyzing the expansive investment field. Simultaneously, social skills are developed by establishing a network and building relationships with business connections.
It’s an acquired skill
No one can be a hedge fund manager overnight. The learning curve is steep and practice makes perfect. Hands-on experience is necessary to be able to acquire the skills.
Aspiring hedge fund manager will go through a series of market upswings and downtrends. That’s the only to gain proficiency and advance in this chosen career.
A hedge fund manager should exude confidence and possess a strong sales and marketing orientation. Without these traits, it would be difficult to win clients over, much more earn their trust.
A prestigious occupation
The hedge fund manager is one of the most prestigious jobs around. The pay is good, if not exceedingly generous. However, the work pressure is also commensurate with the hefty income. No high-net-worth investor will entrust funds to someone who lacks the credentials and financial intelligence to get the job done.