Top hedge fund performers such as Ray Dalio and John Paulson earn multi-million-dollar salaries and impressive benefit packages, making the hedge fund industry appealing to newcomers. Entry-level and mid-tier professionals also earn competitive salaries that vary depending on the geographic location, and the size of the firm. The hedge fund salary for Account Analysts, Accountants and Operations Specialists vary substantially.
Compensation is largely a function of specialization and responsibility in the hedge fund industry. For example, entry-level accountants can expect to make a competitive salary, but not one that outperforms other industries. Supervisors, managers, directors and partners in all functional departments have highly competitive compensation packages that reach six-figures and beyond.
Pros And Cons Of Tail Risk Funds
Editor’s note: This article is part of a series ValueWalk is doing on tail risk hedge funds. The series is based on over a month of research and discussions with over a dozen experts in the field. All the content will be first available to our premium subscribers and some will be released at a Read More
According to Glassdoor, as of 2017 median hedge fund salaries include:
-Dune Capital Management/Hedge Fund Analyst: $115,373
-BNY Mellon/Hedge Fund Accountant: $42,606
- SEI Investments accountant $39k or so
- Man Group PM $236,564
- JANA Partners analyst $219K
- Calyon Securities HF sales $222,281
- Tiger Global Management analyst $208,228
- Albourne Partners Limited Anlayst $204,746
-Sandler Capital Management/Hedge Fund Operations Specialist: $83,330
According to the Bureau of Labor Statistics, job growth for financial managers in 2016 was 19 percent, which far outpaced other professions. This combined with the increasing complexity of financial markets, and the growth of wealth in developing countries, is perpetuating the need for hedge fund professionals. Skilled professionals are guiding their clients to higher rates of return, creating value for businesses, governments and society.
Hedge fund jobs are appealing given the potential compensation, making the job market fiercely competitive. Top firms look to the most prestigious business schools around the world to find candidates, but that doesn’t mean one needs a Harvard MBA to be successful. Professionals with securities and trading experience are sought after, as well as accounting and administrative experts.
Skills in Demand
All firms have unique requirements when it comes to skills, especially when it comes to industry leaders such as Bridgewater Associates. This company places a strong emphasis on its culture, which includes radical truth and radical transparency, and the ability of employees to develop meaningful relationships. General skills include advanced Microsoft Excel, Visual Basic or SQL scripting and interpersonal capabilities. Hedge fund professionals work with large amounts of data and must be able to manipulate the systems they work with to create meaningful information for decision-making.
Working at a hedge fund comes with numerous perks and substantial compensation, especially for leaders at top-end firms. Regardless of market conditions, hedge fund clients continue to need effective portfolio management, perpetuating job creation in the industry. Hedge fund pay continues to remain competitive throughout all tiers in organizations.