hedge fund
hedge fund questions and answers
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Q: How to become a hedge fund manager?
I recently graduated from high school. I would like for this to be my career, what should I major in while I'm in college and how do I go about becoming a hedge fund manager. Also what is the average pay for a hedge fund manager. Any other information you could provide me with would be greatly appreciated.
A: The thing is in this particular career choice, the best schools and best training programs at top firms will only get you so far.
To be a hedge fund manager that is actually one of the succesful ones people talk about, you need to be able to trade well and beat the market averages day in and day out with a smaller beta (risk) than the market. This a truly rare skill which some peope will tell you is impossible due to efficient market hypothesis.
While it is not outright impossible, at least for short periods of time VERY few people can do it and THAT is why they get paid so much. So look to get into trading and get very talented at it. If you can make a couple of years of audited exceptional returns than the money will come to you pretty easily. Getting the returns is the hard part, and like I said there is simply no school or program for it , its something you need to pick up and learn on your own.
Q: How do I find a suitable hedge fund manager?
I want to use a hedge fund manager to invest my money in stocks and shares, but how do I know if I can trust them to make me money and not use my money to make someone else rich? what is the minimum investment? and what do they charge for their services? any info appreciated!
A: 1) Try you local Labor Exchange / Unemployment Office / Soup Kitchen
2) You can't .. they WILL take your money and 'play with it' in order to generate commission and make themselves rich .... when they have lost it all, they will retire to the Bahamas (or perhaps join the queue at the Dole Office, depending on how much they have 'made from you and how much they have spend on wine / women & song)
3) For a 'managed' service they like you to start with at least £50,000 .. (so it's worth them taking their annual 'cut')
4) They 'only' charge about 2.5 to 3% ... (although some take 5% of your 'initial investment')
The SAFEST place for your cash is the BANKS .. and if you have any idea of what a state they are in, maybe you should be REALLY worried about all the other 'Financial Service' organisations ..
Q: What education/experience do I need if I want to work for a hedge fund?
I have a BA in History from Berkeley and a Masters degree in Tax from Golden gate university. I want to tap into the hedge fund industry? What classes and or experiences should I have to break into the industry. I do NOT want to work as a stockbroker making cold calls, however.
A: Its really about making the right industry contacts and showing you have strong quantitative skills or an area of expertise like accounting, market research, etc.
Call up hedge fund HR departments and see if they will set up informational interviews for you. Can't hurt and worst they will say is No.
Q: What do Hedge Fund Managers usually study: Finance or Economics?
Usually what do big time Hedge Fund managers study while in College?
Also are most hedge funds traders or long-term investors?
A: Either is ok..and hedge fund managers come from all walks of life....you do need to be excellent and running a fund and step in shi* its not an easy job to get....you gotta prove yourself and work up from the bottom
Q: How do I become a hedge-fund worker?
I want to become a hedge-fund worker because I am interested in the stock market and that is the most lucrative field in finance. How do I go about becoming one? What does it entail? I am not very good with mathematics. Can I become a hedge-fund worker with a degree in Political Science, Linguistics, or Economics?
A: I actually just wrote an article this morning providing direct links to 10 different articles I have written on getting a hedge fund job - here is the article if you want to read it: http://richard-wilson.blogspot.com/2008/04/hedge-fund-job.html
Q: Do hedge fund managers lose anything for underperforming?
Hi,
Let's say I start a hedge fund. If I provide my investors 100% annual ROI every year, but one year, I lose about 50%, do I have to pay my salary/money back to my investors for the underperformance?
Also, can I start a hedge fund to invest in something BESIDES the stock market? What types of investments do hedge funds out there make besides stocks?
Thanks.
A: Great question! Okay, hedge funds do not pay back lost money to investors, hence investment. A hedge fund is a partnership among manager and investor. since it is a limited partnership, the manager is not responsible for any losses and that is a risk that the investor should be aware of; much like purchasing stock, or mutual funds etc. some hedge funds have what is called a "high water mark" which is basically the mark of the investor's initial investment. Let's say the fund provides a negative 25% return for the investor one year and then he provides a 20% return the following. the manager doesn't collect a performance fee because he didn't exceed the water mark. Few hedge funds do this because it makes it harder on them to acquire income after bad fund years or bad market years. If your fund does depreciate under any circumstances, you will still make money off your management fee. To your second question, many hedge funds do invest in alternative assets to stocks. Many do buy bonds, commodities, futures, currencies etc. Some of the most lucrative globomacro hedge funds profit off of bets that interest rates will change or foreclosure percentages. Also, many hedge funds find themselves engaging in venture capital investments and vulture capital investments. I am currently in the process of full on launching a hedge fund and my primary return seeker is in venture capital. i find that during the times of uncertainty in the market, the more personal, up-close investment decision is less risky and has a higher rate of return.
Q: Is it illegal to open up a small Forex hedge fund?
I am a private Forex trader who wants to expand into a small online hedge fund. Note: This is not code for a pyramid scheme or ponzi scheme. I am talking about trading real money.
What is the legality on this? How much money can I trade before having to register with U.S. Securities?
A: You can have any kind of hedge fund you want.
The key is you need certain registration, the right fund docs, the right corporate structure, and the right legal advice which can cost you $10-50,000 in total depending on your structure.
The hardest part is you will have to find qualified investors who are willing to invest with you.
Q: How to apply hedge fund strategy on betfair?
Anybody know how to apply hedge fund strategy on betfair especially on the soccer and horse racing.
A: Find a horse that you think will drop in price. Say it is paying $8 then back it for 100. WHen it drops to say $5 lay it for 150. If it wins then you collect 800 from your first bet but fork out 750 for the 2nd (profit $50).
If it loses then you collect the 150 but lose your 100 bet (profit $50).
The trick is to back them high and lay them low.
Q: How would I become a Hedge Fund Manager?
Please let me know as I would like to become a Hedge Fund Manager because it is right up my street I love the fact that you need to about finances and economics.
A: I think without any previous experience you will find it very difficult to find any hedge fund participants that will allow you to manage their money. I think if you had a degree in management and finances and became a hedge fund player, then you would have more creditability to gain the trust of others. Good luck.
Q: Hedge Fund question: How do I avoid Broker Chains?
I work with commercial real estate, and luxury resort constructions I have direct access to a hedge fund for equity requests, but on most occassions, I wind-up dealing with two, three even four different brokers. This tends to waste valuable time and unnecessary fees. How do I deal directly with hedgefund managers and not brokers?
A: I think it is probably the nature of the beast. SEC regulations require the hedge fund to deal directly with other licensed investment professionals, and not the general public.
The brokers are used to drum up business and assess risks and weed out undesireables. They are a buffer and regulatory mandate also.
By SEC law, the hedge fund cannot deal directly with the public, or promote their hedge fund directly without meeting stringent criteria. It is possible to deal directly with the hedge fund, if they are careful not to be promoting themselves, and if they follow the criteria for "knowing" the investor. This has gotten more difficult with the advent of Homeland Security, and the need to monitor the flow of money.
Q: What exactly is a hedge fund and how does one work?
CAn some one please explain a hedge fund to me..?
A: There is a good explanation at
http://en.wikipedia.org/wiki/Hedge_fund
Q: I am starting a hedge fund for financing independent movie producers, how do I find investors ?
I am looking for lots of individuals willing to be small investors but want to enjoy the returns that can only be gained by the big hedge fund members. I want to issue shares in the management company to interested investors and in turn they'll have a share in the company before the company grows large. If you are intersted in providing me with creative ideas and financing options, respond to this inquiry
A: You need to find a venture capital firm or business angel investor, they are private investors and lending sources of which there are many out there in business. They usually desire high net worth individuals, but if the idea is right some will offer funding for a growing business.
Q: Do you need a lot of your own money to start a hedge fund?
I want to play the game! I would love to learn to manage a hedge fund and make people, as well as myself, a lot of money.
A: Are you a good salesman?
I love that little piece in that old movie Wall Street. Martin Sheen's character ribs his son (in real life and in the movie) about being a salesman. Charley protests that he was an "analyst" or something. Martin's character retorts, "You call strangers and ask for money, right? Then you are a salesman."
Okay, that is one foot in the dance. The other foot involves what you do with their money once you get it. Got a good plan? Got any experience? How about what you did with your own money? Some popular stock contests will win you a job, but you've got to be better than the other 20 thousand competitors. Meanwhile it will give you opportunity to practice ideas and see what others are doing. Nonetheless, what you do with real money is what sells your idea best, so shake loose some shekels and parlay it into something respectable.
When you know what you are doing, and are able to persuade others to do it with you, then you can dance.
(Don't feel too bad if you don't get there, lots of us, myself included, are lousy dancers most times)
Q: When is Chelsea due back for work A the hedge fund?
How have they been getting along without her valuable services all this time.
Are the returns @ the hedge fund down since the brilliant genius Chelsea has been on sabbatical?
Is Chelsea on a PAID sabbatical while campaigning with Mommy?
A: The hedge fund must be on the verge of collapse without Chelsea there
But America is more important to all the Clintons then money
Chelsea believes her duty to America is more important than her duty to the hedge fund
She is just like mom in that respect
And when the campaign is over Chelsea will return to the hedge fund and rescue it from disaster
(the same way Hillary will rescue America, Chelsea is just like mom?
In case you can't tell, that's sarcasm
Q: What college is good for Hedge Fund Manager?
I need to know what are good for a hedge fund manager and where. Thanks
A: MBA from Columbia, Harvard, MIT, University of Chicago, or University of Pennsylvania. (3 years)
Work you way through a top investment firm (e.g. Morgan Stanley, Goldman Sachs, etc.) (5 years)
Build a reputation and track record (4 years)
Raise at least $100 million to start your hedge fund.