How many hours a week do hedge fund people work?
On average, hedge fund traders often work long hours, ranging from 50 to 80 hours per week. The specific workload can depend on the fund's strategy, market conditions, and individual firm policies. During peak periods or when significant market events occur, traders may put in even longer hours.
As you move to larger, multi-manager funds, the hours and stress get worse, so the average may be more like 60-70 hours per week. It's still far from a 9-to-5 job, but you have a lifestyle advantage over bankers and private equity professionals because your hours are more stable and don't depend on deal activity.
The 2 and 20 is a hedge fund compensation structure consisting of a management fee and a performance fee. 2% represents a management fee which is applied to the total assets under management. A 20% performance fee is charged on the profits that the hedge fund generates, beyond a specified minimum threshold.
Lifestyle and work-life balance are a challenge in both careers. Investment bankers may work anywhere from 60 to 80 hours per week or even more, and often work at least one day on the weekend. Work hours at hedge funds vary and depend on market conditions. A work week of 50-70 hours is typical, although hours can vary.
| Position Title | Typical Age Range | Base Salary + Bonus (USD) |
|---|---|---|
| Junior Analyst or Research Associate | 22-25 | $100K - $150K |
| Analyst | 24-30 | $200K - $600K |
| Senior Analyst or Sector Head | 28-33 | $500K - $1 million |
| Portfolio Manager | 32+ | $500K - $3 million |
A: The hedge fund industry is known for its demanding work environment. Long hours, tight deadlines, and the constant pressure to perform can contribute to high levels of stress.
Investors need to know they can rely on what you say and the analysis you're producing. The average during a busy time for associates and analysts is usually around ~60-70 hours per week. But it's all dependent on how many deals and investments are on the go. The above hours will vary based on if there's a live deal.
The easiest path to landing a job at any type of hedge fund is to work in banking for the first two years out of undergrad. During those years, make sure you develop a good reputation and try to be a top bucket analyst. You need to be very good at excel and have a strong grasp on valuation / modeling.
a minimum investment of $1 million to $10 million. Despite such high thresholds, through Morgan Stanley, clients can often gain access to funds at much lower minimum investments. As discussed later, investments in single manager hedge funds may be as low as $100,000 per fund.
It is not uncommon for a hedge fund to require at least $100,000 or even as much as $1 million to participate. Unlike mutual funds, hedge funds avoid many of the regulations and requirements within the Securities Act of 1933.
What do hedge funds do all day?
Work days do tend to follow somewhat of a routine, with market open and close being the most critical. In addition to trading, hedge fund managers must also make sure all of their positions are in order, their models up-to-date, and their business/social lives active to keep investors and brokers happy.
This industry is not for everyone. There is a lot of competition with top-tier firms to get the smartest people from top investment banks and colleges. It's not easy to break into and land a job at a hedge fund without prior experience, especially a well establish fund that's been around for over a decade.
On the negative side, the hours are still long and stressful (though better than investment banking hours), job security can be low, and your exit opportunities will be limited.
Who Is the Richest Hedge Fund Manager? Ken Griffin of Citadel is both the richest hedge fund manager and the highest paid. In 2022, he earned $41. billion, and by the beginning of 2023 his net worth was estimated at $35 billion.
With a reputation for offering some of the best salaries in the financial sector, a hedge fund career is one that's coveted by many professionals.
Top tier hedge fund analysts can make significant salaries, often ranging from hundreds of thousands to millions of dollars per year, depending on factors such as their level of experience, the success of the fund, and the specific compensation structure of the firm.
Hedge fund analysts typically work between 60 and 70 hours a week. Working on the weekend is not common but it certainly does happen from time to time.
Over the years, he noticed that the average lifespan of a hedge fund is quite short – less than five years. Sometimes these ideas get funded and sometimes they don't. As such, the success (or failure) of a fund is not easy to discern.
Skills to work for a hedge fund
A career in finance, economics and investing usually requires professionals to be mathematical, logical and personable.
The good thing about private equity is that you can conceivably work between 40 and 50 hours. If your portfolio companies are humming along normally and you're not in a live process, there won't be an awful lot to do. A lot of your capacity will depend on the capacity of the more senior people.
How hard is it to break into private equity?
Landing a career in private equity is very difficult because there are few jobs on the market in this profession and so it can be very competitive. Coming into private equity with no experience is impossible, so finding an internship or having previous experience in a related field is highly recommended.
Growth equity hours per week
The hours in growth equity can vary quite a bit, depending on the specific role and company. However, in my experience, most pre-MBA roles (i.e. analyst or associate) will usually range from 55-65 hours.
There are many hedge funds that hire undergraduate students for internships and full-time roles after graduation.
Pumping and dumping occurs when the price of a stock is artificially inflated and then drops. Here, we illustrate how hedge funds can accomplish pumping and dumping, and argue why this strategy is likely to be successful for them.
If the fund managers did not follow their investment guidelines, if they were not truthful in their solicitation materials or disclosures, or if they violated their fiduciary duties to investors, they may be sued. In those cases, much will depend on the fine details of the fund's documentation.
