A hedge fund is another name for an investment partnership.

The objective of a hedge fund is to maximise investor returns and reduce risk.

This is why it is termed as "hedge".

The aim is to make money in spite of the market conditions.

In this type of fund, the limited partners contribute money while general partners manage.

Some of the key features of hedge funds are:

Investors in hedge funds must meet certain net worth requirements to invest in them.

Mutual funds are limited to stocks and bonds, a hedge fund can invest in anything – stocks, land, real estate, derivatives, and currencies. Instead of charging an expense ratio only, these funds charge both a performance fee and an expense ratio.

Hedge funds will generally employ borrowed money to enlarge their returns employment for financial analysts including hedge fund managers is expected to grow between 2012 and 2022, according to the BLS.

Hedge fund managers (portfolio managers) are among the Best Jobs in America list by CNN and top across europe.

Hedge fund managers generally hold a bachelor's degree or higher and also have several years of experience as a financial analyst.

Students who are interested in becoming hedge fund managers can pursue a bachelor’s degree in finance or related concentrations such as accounting, economics or business administration.

Taking classes in statistics and advanced maths can also be useful. Earning an MBA in finance can also be suitable for aspiring hedge fund managers.

Covering advanced courses in hedge funds, asset management, options pricing and bond valuation, these programmes may take 2-3 years to complete.

Hedge fund managers must have expertise in areas such as:

Economics and accounting (principles, financial markets, banking and the analysis and reporting of financial data) Mathematics (geometry, algebra, calculus, statistics).

English language (grammar and composition) Law and government (laws, legal codes, court procedures, executive orders, agency rules, precedents and government regulations).

Computers and electronics electronic equipment, and computer hardware and software, including applications and programming.
 
Customer services customer needs assessment, meeting quality standards for services and evaluation of customer satisfaction.

Sales and marketing (principles and methods for promoting, and selling products or services). Administration and management (business and management principles) Communication.

Hedge fund managers should have strong communication skills.

They must be active listeners and be able to pay complete attention to what other people are saying.

They should also be able to communicate their ideas verbally as well as in the written form.

Problem solving – Hedge fund managers must have the ability to solve problems and review related information so that they may develop and evaluate options and implement solutions.

Decision making – Critical to this line of work is decision making skills.

Hedge fund managers should be able to take into account the relative costs and benefits of potential actions in order to choose the most appropriate course of action.

Critical thinking – Portfolio managers must also demonstrate critical thinking, using logic and reasoning in order to categorise the strengths and weaknesses of alternative solutions, conclusions or approaches to problems.

Some hedge fund managers opt to earn the Chartered Financial Analyst (CFA) designation offered by the CFA Institute.

To be eligible for the CFA title, students need to complete formal training and also have work experience.

Candidates are required to pass 3 exams, covering a range of subjects such as professional ethics, risk management and portfolio management.