Best Colleges and Degrees For Hedge Fund Managers - Zippia (2024)

FAQs

What degree is best for a hedge fund manager? ›

Hedge fund managers often have a master's degree or even a Ph. D. in finance, mathematics, economics, financial engineering, quantitative finance, programming, marketing, or business administration. Others have advanced degrees in a specialty such as engineering or accounting.

The report also ranked schools by investment product focus. The top school for American hedge funds was Harvard University, followed by Penn and Chicago. For U.S. equities, Penn was first, followed by Chicago and Harvard. In U.S. fixed income, Penn was again number one, followed by Chicago and New York University.

Key Takeaways

Bachelor of Science degrees in mathematics, accounting, physics, computer science, and even engineering are also useful, given the recent rise in algorithmic trading. A graduate degree such as an MBA or MF can also help in landing a hedge fund job.

The most successful hedge fund managers handle billions of dollars in assets for their clients, and their earnings can reach into the billions as well.

However, because hedge funds are typically much higher-risk portfolios that are more actively traded, they require close monitoring and a greater amount of day-to-day hands-on management and decision-making regarding investments.

The top-ranked undergraduate programs for getting an investment-management job at a hedge fund, mutual fund or private equity fund include the usual suspects. Coming in first is the University of Pennsylvania, followed by Harvard University, Stanford University, Cornell University and Princeton University.

Hedge fund managers typically earn above-average compensation, often from a two-and-twenty fee structure. Hedge fund managers typically specialize in a particular investment strategy that they then use to power their fund portfolio's mandate for profits.

After earning your degree, completing an internship, finding a mentor, expanding your network and creating a resume, you can apply for a position working for a hedge fund.

Which hedge funds hire undergraduates? ›

They're looking for the best and the brightest young minds to help them make money, and they're willing to pay top dollar to get them. Some of the biggest and most well-known hedge funds that hire new graduates from Ivy League schools include Bridgewater Associates, Two Sigma Investments, and Renaissance Technologies.

You should ideally be an investment banking analyst at a top bank, an equity research associate at a top bank, a research or investment analyst at an asset management firm or mutual fund, or a sales & trading professional on a highly relevant desk.

For those seeking a career in investment banking, a bachelor's degree in finance is a prerequisite. Other potential acceptable majors include bachelors in economics or bachelors in business supplemented with a minor in finance.

In terms of everyday responsibilities, the main duties of a fund manager include building financial models, meeting with clients, and analysing investments. At a higher level, they oversee the hedge fund's daily operations. This might include risk management, marketing, sales, and cash flow forecasting.

Harvard and Yale, in particular, have been very successful at producing hedge fund managers. This is likely due to their strong finance programs and extensive networking opportunities.

Most employers require that investment fund managers have a bachelor's degree in accounting, business administration, finance, or statistics. Other possible majors include economics, international business, and public administration.

No. It may be important to go to a top b-school, but work experience in a hedge fund before school is what often counts, says a Quora participant. The alternative is experience in investment banking or a private equity fund.