How to identify talented hedge fund managers?
This is a broad question as obviously the specific qualities a hedge fund manager should have are dependent on the position in question. However, the general skills required by almost all hedge fund managers seem to be easily categorised under three headings: instinctive skills, personal skills, skills gained through experience.
- The instinctive skills, which are much harder (but not impossible) to learn if they do not come naturally, largely revolve around problem solving. Hedge fund managers should have a built in ability to break a problem down into individual components, simplify it and solve it. Loosely encompassed within this ability are analytical skills and a confidence in initiative.
- The personal skills required include, as expected, a love for the job. This can be defined by a personal interest in the sector, following the markets religiously and potentially trading independently. Also, as hedge fund teams tend to be small, it is important that the candidate easily slots in with the firm and naturally shares the same work ethic and social priorities.
- The skills based on experience are almost entirely dictated by the position. But as a general rule hedge fund managers tend to have a back ground in investment banking before moving to hedge funds. Without this, an impeccable school record is imperative, a relevant degree from a top fifteen university and excellent references.
To find all of these qualities encapsulated by one person presents something of a challenge! Do you think all of these skills are necessary? Or have some essential skills been missed out? Share your thoughts below.