What Are the Responsibilities of a Hedge Fund Manager?
Updated on Thursday 04th October 2018
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Investors who are interested in how to open a fund operating as a hedge fund will need to appoint a hedge fund manager. The hedge fund manager is in charge of numerous investment operations related to the vehicle - for example, the person has to take all the relevant decisions regarding the manner in which fund’s financial assets are invested.
The main responsibilities of hedge funds managers
Regardless of the jurisdiction in which the hedge fund startup operates, it is compulsory to have a hedge fund manager. As a general rule, the hedge fund manager is the person who takes all the decisions related to the investment strategies that should be followed by the vehicle, and who oversees all the activities of the fund. The managers also have the following responsibilities:
• reporting activities – they have to ensure the fund’s strategies and objectives are reported as prescribed by the investment legislation available in the country where the fund is registered;
• compliance activities – they verify if the fund performs its investments as prescribed by the national regulator of the investment industry;
• performance activities – the main concern of any hedge fund manager, as he or she is responsible for growing the value of a fund;
• protecting investors’ assets – due to the fact that hedge fund managers are appointed to use the financial assets of the investors, they also have the responsibility of investing in a manner that would not harm such assets.
What does it take to become a hedge fund manager?
The investors of a hedge fund startup will want to collaborate with hedge funds managers that have an in-depth experience in the field or with those who have high credentials regarding this sector. One of the main requirements for a future hedge fund manager is to have a bachelor’s degree in a related field, such as accounting or finance. It is important to know that certain types of activities can only be performed by individuals who also own a master’s degree.
The hedge fund manager will need to have certain types of abilities and skills – analytical thinking, communication skills, management and financial abilities, as he or she will have to analyze clients’ portfolios, monitor financial markets, sell and buy on behalf of their clients and other similar activities. Foreign businessmen are invited to contact our team of affiliates for more details on this subject.