<p>I'm sure everyone has heard stories of successful hedge fund managers making from $100m- $2b. That coming to a conclusion that a analysis could easily make 50k-100k and would've better education of business & job within funds than IB firm (since there's a smaller capacity). Anyone wanting to get into finance this may be ideal. </p>
<p>You start out of college and be analysis for 2-3 years (assuming you're not going to b-school) then move up to associate position for 2-4 years. Next you're VP until eventually you are portfolio manager. However it's possible to stay in through your 20s - mid 30s then either retire or go on to something because by then assuming the fund been amazing, you prove yourself worthy to move up in the ranks in speedy motion you, and been financially intelligent, you should a millionaire by your mid-late 30s. </p>
<p>If you don't believe then do your own research because sources will tell you the same thing (well at least about the fund managers). CNBC just did a special of the super rich and 1/3 of those people included fund managers. </p>
<p>you're dreaming if you think it is actually as easy as you describe it. There are no get-rich-quick schemes (at least not ones that will work every time). If it were as easy as you put it, then half the world would be cruising their way into hedge funds.</p>
<p>Seriously, instead of busting my arse in an investment bank, I should just make some crappy get-rich-quick informercial and sell the secret to financial success for 4 easy payments of $29.95... so many suckers it's truly incredible.</p>
<p>This thread is full of overblown, idealized information. Yes, HF managers make a lot of money, and yes, they hold very lucrative jobs, but you must have no clue how hard it is to get into HF's straight from undergrad. First off, do you know what a Hedge Fund is? I'm assuming you know a little, but here's the scoop-</p>
<p>With a hedge fund, you have a ton of risk. Second off, most people who start off at Hedge funds will have had previous Ibanking experience, so your idea of starting off as an analyst in HF is incredibly rare- those spots are generally considered for the top of top applicants from the HYPSM +W caliber schools. That means the path gets even tougher, as you have to compete among students who will be as smart and ambitious as you are, and if you think that you are within the top 1% of students at the top 1% of schools, then great, you might just have a chance at landing a FT offer from a HF. </p>
<p>Even then, you're never guaranteed promotions to Manager level; heck, you're not even guaranteed an associate spot. As I previously stated, HF's are also extremely volatile, and a few big mistakes can easily collapse the entire fund (ever heard of Bear Stearns?).</p>
<p>^His discussion about difficulty of getting a HF job directly out of UG was probably reasonably accurate. If he had written LTCM in the ( ), it would have been much more relevant to the topic at hand.</p>
<p>
[quote]
First off, do you know what a Hedge Fund is? I'm assuming you know a little, but here's the scoop-
[/quote]
</p>
<p>Do YOU know what a hedge fund is? What makes hedging so risky, particularly in this market? Risky for all fund strategies? What about in the case of distressed debt/special situations? I think hedge funds aren't risky at all if you know the markets (which, obviously, you don't). Anybody with half a brain could see the subprime mess coming from miles away. HFs with good market acumen are making billions by shorting the ABX index. And, to take a quote from your book, "ever heard of Paulson&Co?"</p>
<p>My problem with little boys/girls like you is that you talk like you know everything about finance -- "here's the scoop." What scoop? You said HFs are hard to break into? What's next captain obvious? Oxygen is good for the body? </p>
<p>Go through puberty first and let the big boys play.</p>
<p>Haha Watson2Holmes, is this a joke or something? You sound like a troll to me- there's no way any reputed person in the industry, or "big boy" as you put it, doesn't know about the bear stearns collapse and the hedge funds that partly caused it. I'm not even argue with what you say- it's just completely retarded. </p>
<p>I guess you haven't watched CNBC/ touched the WSJ in ****ing years or something. </p>
<p>lol Watson, judging by your posts, it seems like you're applying to b-school right now? How old exactly are you ? 24? 25? </p>
<p>You know you're probably on to something here- you probably know a lot more about finance here than I do. I'm not claiming to know it all, and trust me, I understand nothing will ever substitute real work experience. But still, to think that someone of your caliber would have the arrogance to think that only people in the industry would only have the brains to understand what a HF is is completely ludicrous. It's *******s like you that push me to work harder, network better, and understand more of the market. I don't know if you're experiencing some jealousy or not, but the fact is, people are starting to learn about finance earlier and earlier, and that just comes with the territory. </p>
<p>Since you were an English major in college, it doesn't seem like you had much interest in the subject at first. That's fine dude- nothing wrong with that, and since you're a big hot-shot now, I'm sure you don't regret it at all. But damn, that is not gonna stop people like me from taking all of y'all's lunches.</p>
<p>CNI has most of his information correct. Bear Stearn's hedge fund collapse was the one thing that really exposed all of Wall St.'s mess. However, no one can argue that Bear Stearns collapsed because of its two hedge funds; it was a string of events including stupid short sellers, terrible management, and a string of unlucky events and bank runs.
Point is, there are great hedge funds and there are ****ty hedge funds. I think most people who graduate with a finance background can get into a hedge fund if they really wanted to (heck they can even start their own hedge fund with their own capital). The elite hedge funds, such as Och-Ziff, Citadel, Bridgewater, ESL, DE Shaw, Perry, Fortress...etc, are almost impossible to get into after undergrad. Unless you have a degree from Harvard, Princeton, or Wharton and have previous banking/prop trading experience from a reputable bank, you basically have no chance of interviewing with these places. These are the hedge funds that you hear people making millions and billions. Most hedge funds, of course, fail...</p>
<p>
[quote]
Anybody with half a brain could see the subprime mess coming from miles away. HFs with good market acumen are making billions by shorting the ABX index.
[/quote]
That made me laugh. Almost all the good hedge funds are getting killed. Take Goldman, for example, their internal hedge funds haven't been having a good year. Their quant fund, Global Alpha, is down a lot. Citadel had a rough year. Ritchie Capital which was featured in the WSJ last week is almost going broke. GLG partners, one of Europe's biggest hedge funds, lost their star trader and their emerging markets fund is down huge after posting massive gains. It's not just funds with exposure to MBS that are being hit, pretty much everyone.</p>
<p>Some of the comments Watson made are completely ridiculous, but alas, this is only an online forum and we're all here to learn right?</p>
<p>Look we have either know or have idea of what a hedge fund is so stop all this bashing & vile argument because its not helping no one. Most of you are adults so act like one!</p>
<p>I think the main point here is that the OP made it sound like working at a hedge fund and then becoming a manager was as easy as sending in your resume. I really don't see the point of this thread. Yes, if you do manage to become a HF manager or upper-level trader, you will make bank. Thanks for letting us know man.</p>
<p>running a <em>PROFESSIONAL</em> hedge fund is infinitely impossible. The cold hard truth is that without connections, you’re done. The exec at JP Morgan let me in on this. Friends will screw you over without a thought, hours are long and excruciating, many end up drinking or chain smoking to calm their fears. You will literally throw up, and your fingers will tremble and all you will ever be able to think about is if you will live to fight another day.</p>
<p>I don’t personally run a hedge fund though, heck I’m just starting college, but many professionals I’ve talked to agree that it is a very stressful job. If you do choose to go into this profession, do know that many top students with recommendations have been looking for jobs like this for decades. Ask any student of the markets and they’ll tell you you’ll likely burn out before you reach your goal.</p>
<p>As for the risk, the seniors will likely come in to rescue your positions. Many already account for your losses by martingale and dollar cost averaging. If you lose they might encourage you, but they have already black listed you.</p>
<p><em>For those daring</em> Some advice I’ve learned
-THOSE WITH EGOS NEED NOT APPLY. Interviews are actually heavily psychology based. If you can’t handle yourself, you sure can’t handle other people’s money. Ego, greed, fear and worst of all hope must be controlled.
-Today their advice is to make funds accessible over the internet, without a concrete storefront.
-Watch your running book value less you find you have insufficient funds to cover your positions
-SL/TP are easily manipulated by the market, don’t reveal your positions to ANYONE but your trusting senior (if he screws you over, well you’re screwed anyways)
-If you get into a position be nimble, the market turns on a dime.
Technical analysis (BB bands, stochastics ect are all lagging. Useless especially in investment). Charts are ok, but in the end YOU control your demise so YOU must ,make the decision. NOT the market’s indicators or whatever the news says. (Pay attention to the big players though-99.9% of market news is trash)
-do not try to hit homeruns, steady consistent profits is what they look for.
-The market is a WAR, if you can’t handle the heat get out of the kitchen</p>
<p><strong><em>Finally consider this. If you had a million dollars, wouldn’t you like to spend time w/ the family? To be at your kid’s b-ball games? Go fishing or stare at the stars for a little? These simple pleasures will last you a lifetime. If amassing money is your MO, you’re missing out on a lot that life has to offer. If you were a pharmacologist or sped teacher you make a handy 80+k, be well respected, secure, and get to go home on a regular schedule</em></strong></p>