Top 5 Characteristics in a Hedge Fund Manager’s Profile

Hedge Fund Managers

The article is continuation of our series of articles from the book ” The Pragmatic Hedge Fund Manager”. The previous posts covered the recent myths about Hedge Fund managers and their challenges, Industry trends and reasons to create hedge funds. So, what exactly constitutes the best attributes to be a hedge fund manager?

Profile of a Hedge Fund Manager

Just like the Hedge Fund industry has many characteristics and attributes, Hedge Fund managers also have a special profile for belonging to one of the most powerful financial sectors of the economy. This profile is a collection of habits, characteristics and natural instincts that a person should possess if he wants to step into the shoes of a Hedge Fund Manager.

A lot of stress has been placed on the dangerous and risky nature of Hedge Funds and the environment they operate it. Characteristics of this market are quite different from other direct investment segments because Hedge Funds deal with highly volatile conditions, coupled with risky projects that can cause significant harm if they do not yield as expected.

Therefore, while Hedge Fund Managers are regular people like managers of other financial vehicles like Mutual Funds or Pension Funds, they have a thing or two that puts them aside from the lot. For an outsider, the job of a Hedge Fund manager is quite simple. All he has to do is initiate investments, manage them and when profits are recorded, distribute the relevant numbers among respective investors.

Even though Hedge Fund Investments are precisely that, the way an investment manager is held responsible for this chain of events is anything but simple. Consider an example; for instance, you are hired as a manager for the country’s most esteemed Hedge Fund with an Asset under Management figure of $2 billion. What does your job encompass?

If you don’t falter hearing the amount "