Pros and Cons of Working for a Hedge Fund

You think about a career as a hedge fund manager but want to get additional information about job prospects, salaries, educational requirements, working hours and much more before making your final decision in this regard?
Great! This article is exactly for you since I will show you the pros and cons of working for a hedge fund in the following chapters.
Table of Contents
Hedge Fund Manager Job Profile
Job Description | People working for hedge funds conduct financial analyzes and try to exploit the market so they can achieve higher returns than main indices in the long run. |
Salary | $132,000 per year on average, most people working for a hedge fund make between $102,000 and $318,000 per year. |
Job Security | People working for hedge funds have decent job security and even in case they lose their jobs, they often have excellent job prospects and many exit options. |
Job Satisfaction | Many people working for hedge funds are not really happy with their jobs since even though they make really good money, they also have to work pretty long hours and barely have any social life. |
Work-Life Balance | Hedge fund managers often work all day and night long and barely have any leisure so their overall work-life balance is pretty poor. |
Physically / Mentally Demanding? | Working for a hedge fund can be heavily mentally demanding. |
Future Outlook | Decent future outlook for people working for a hedge fund since real financial experts will always be in high demand. |
Requirements | You need a degree in mathematics, economics, finance or a related field from a renowned university and also need excellent grades to work for a hedge fund. |
Advantages of Working for a Hedge Fund
- People working for hedge funds can make pretty good money
- You can meet many ambitious people during your career
- You can build a strong business network
- Working for a hedge fund can be exciting
- You can work with people from all over the world
- Excellent exit options for people working for a hedge fund
- Hedge fund managers can work indoors
- You don’t have to work in a hard physical manner
- Hedge fund managers don’t have to worry about old-age poverty
- You can afford many nice things
- You have an easy time in the dating market as a hedge fund manager
- People working for hedge funds have a decent social standing
- You can get high levels of responsibility at a rather young age
- People working in hedge funds often climb the ladder rather quickly
- Decent job security for people working for hedge funds
- Hedge fund managers can often work remotely
People working for hedge funds can make pretty good money
One advantage of working for a hedge fund is that you can make really good money from your job.
In fact, you will usually start out with a six-figure income and may even be able to make a seven-figure salary at a rather young age while bakers and most other people can just dream about making this kind of money.
You can meet many ambitious people during your career
Since many good people aim to work at hedge funds, you can also meet many pretty smart and ambitious people along the way and learning from those people can be a great experience which can benefit you quite a lot for your future career.
You can build a strong business network
Since you can meet many ambitious people, you can also build a really strong network of influential people can this can help you climb the corporate ladder quickly since many of your hedge fund colleagues will work for big corporations once they get older and your contacts to all those people can really help you get into leading positions.
Working for a hedge fund can be exciting
You should also know that it can be pretty exciting to work for a renowned hedge fund at a rather young age and especially at the beginning of your career, you can learn many important skills and will also be motivated to really get to the next level.
You can work with people from all over the world
Working for a hedge fund is also popular all over the world and you will therefore often work on projects with people from many different countries and this not only helps you improve your language skills but also makes you more flexible and tolerant in the long run.
Excellent exit options for people working for a hedge fund
Another upside to working for a hedge fund is that you will also have excellent exit options.
In fact, if you work for a renowned hedge fund for a few years, you will have almost freedom of choice regarding whom you want to work for afterward and many doors will open for you that will be locked for most other people.
Hedge fund managers can work indoors
While foresters and many other people out there have to work outdoors during times of bad weather, you as a hedge fund manager can just work in a classical office environment and can even enjoy a nice drink during work and can make your time as convenient as possible.
You don’t have to work in a hard physical manner
While working for a hedge fund is mentally demanding, you still don’t have to work in a physical manner and therefore don’t have to stress your body as much as welders or many other people who often suffer from serious health conditions in the long run.
Hedge fund managers don’t have to worry about old-age poverty
Since you will make pretty good money, you will also not have to worry about old-age poverty as a hedge fund manager since you will be able to live a fancy lifestyle while you can still put lots of money aside for retirement.
You can afford many nice things
In general, thanks to your good income, you will also be able to afford a nice home, a nice car and many other nice things most other people out there will not be able to afford and this can make your life just better and you may also feel special and may also be pretty proud about all the nice things you will have.
You have an easy time in the dating market as a hedge fund manager
Since you make pretty good money and will also be admired by many people out there, you will also have a pretty easy time in the dating market as a hedge fund manager and will almost have freedom of choice regarding whom you want to date.
People working for hedge funds have a decent social standing
Since many people will envy and admire you at the same time, you will also have a pretty decent social standing as a hedge fund manager and can also tell many interesting stories about your career.
You can get high levels of responsibility at a rather young age
People working for hedge funds also get high levels of responsibility from a rather young age right after finishing their college degrees and while this can be pretty stressful, it also allows you to grow as a character rather quickly.
People working in hedge funds often climb the ladder rather quickly
Since you will meet many good people and will also learn many skills valuable in the job market, you will also be able to climb the career ladder rather quickly and while many of your friends may be stuck in their jobs, you may get from one high to the next and may finally end up in senior management or in other great positions.
Decent job security for people working for hedge funds
You also have pretty decent job security when you work as a hedge fund.
While you may lose your job from time to time, it is often still not a big deal since you will have many job options and can just go for a job in a different field where you also make pretty good money while you often have to work far fewer hours.
Hedge fund managers can often work remotely
Since you will do classical office work with a computer, you will also be able to work remotely as a hedge fund manager most of the time and this can be pretty convenient since it helps you manage your private and professional life at the same time in a more efficient manner.
As you can see, there are many reasons for working for a hedge fund.
Yet, it is still not all sunshine and we also have to talk about the drawbacks of a hedge fund manager career in the following chapters so you can better decide whether you still want to work for a hedge fund or rather want to get a job in a different industry instead.

Disadvantages of Working for a Hedge Fund
- Working for a hedge fund can be mentally demanding
- Hedge fund managers often have to work many extra hours
- You sometimes even have to work on weekends
- You may neglect your family life
- People working for hedge funds often lose many social contacts
- The hedge fund industry is pretty competitive
- Hard to make friends at work
- You need a fancy degree for working for a hedge fund
- Only the best of the best stay in this field in the long run
- You are at great risk of burnout as a hedge fund manager
- You may have to deal with demanding clients
- Hard to make a positive social impact as a hedge fund manager
- Hedge fund managers often suffer from sleeping problems
- You work in a classical office environment
- Student loan debt may become a problem
Working for a hedge fund can be mentally demanding
One downside to working for a hedge fund is that it can be extremely mentally demanding to do this kind of work.
In fact, you will work with numbers all day long and if you don’t have talent in this regard and are also not interested in this kind of work, chances are that you will lose motivation for what you are doing rather quickly.
Hedge fund managers often have to work many extra hours
You should also know that you will have to work long hours as a hedge fund manager.
Many hedge fund managers work 60 hours or more per week and if you want to have a standard 9 to 5 job, you should rather work as an accountant or go for other careers in the corporate world instead where you usually don’t have to work much overtime.
You sometimes even have to work on weekends
If schedules are tight and you have important client meetings on Monday, you may even have to work on Saturdays and Sundays to get things done in time and this can be really annoying since it will take away the opportunity to make nice weekend trips with your family.
You may neglect your family life
In general, working for a hedge fund is not great at all if you have kids since you will come home from work pretty late in the evening and will therefore not have enough opportunities to see your kids grow up which you might regret later on in your life.
People working for hedge funds often lose many social contacts
Since you will work so many hours, you will also not have time to maintain all of your social contacts and may lose many of your friends sooner or later since your job will just become your main priority and you will just not have enough energy to do many other things.
The hedge fund industry is pretty competitive
Another problem with working for a hedge fund is that this industry is pretty competitive and it is therefore pretty hard to get in there and most people who aspire to a hedge fund career will never make it to this stage since requirements are so high.
Hard to make friends at work
Since people working for hedge funds are pretty career-focused, it is also pretty hard to make good friends at work and you may therefore often feel lonely and not welcome and this can really lower your overall quality of life in the long run if you don’t have the stomach to deal with those things in a proper manner.
You need a fancy degree for working for a hedge fund
You also need a degree in mathematics, finance, economics or a related field from a renowned university to be able to work for a hedge fund and you should also have excellent grades.
Thus, you will have to spend lots of time and money on your studies and you should make sure that becoming a hedge fund manager is really worth it to you before you make this huge commitment.
Only the best of the best stay in this field in the long run
You should also be aware of the fact that many people exit this industry rather soon and only very few people stay in this field for decades and you will therefore always have to work with new people and always have to adapt if you want to stay successful in the hedge fund industry in the long run.
You are at great risk of burnout as a hedge fund manager
Another disadvantage of working for a hedge fund is that you will also be at great risk of suffering from burnout or other mental problems since you will have to deal with high stress levels which can be a huge emotional burden in the long run.
You may have to deal with demanding clients
During your hedge fund career, you will also meet many demanding and difficult clients who will expect excellent performance and if you can’t deliver, you may just lose your clients and may even lose your reputation which can be detrimental in the long run.
Hard to make a positive social impact as a hedge fund manager
Since you will just care about making money, you will also have a really hard time making a positive social impact at work and you may therefore just lose motivation for what you are doing sooner or later.
Hedge fund managers often suffer from sleeping problems
Since hedge fund managers have to work long hours, many people working for hedge funds also suffer from sleeping problems and a lack of sleep can really be detrimental to your health and may lead to all sorts of problems.
You work in a classical office environment
As a hedge fund manager, you will also work in a classical office environment and while fallers and many other people get lots of fresh air, you may really get annoyed with your work and will also often not see any tangible results.
Student loan debt may become a problem
Since you will have to go to college for many years, you will also have to spend lots of money on tuition and other expenses related to college and you may also have to take on student loan debt to finance your degree which may financially constrain you later in your life when you have to pay this money back.

Working for a Hedge Fund Pros & Cons – Summary List
Working for a Hedge Fund Pros | Working for a Hedge Fund Cons |
---|---|
Hedge fund managers make really good money | Hedge fund managers have to work many extra hours |
You have an easy time in the dating market | Poor work-life balance for people working for hedge funds |
Working for a hedge fund can be exciting | Working for a hedge fund can be stressful |
You can meet many ambitious people | Clients can be demanding |
You can build a strong business network | You may suffer from sleeping problems |
Many of your friends will envy and admire you | You are at great risk of burnout |
Hedge fund managers have great exit options | You need a fancy degree to work in the hedge fund industry |
Decent future outlook for hedge fund managers | You may neglect your social contacts |
You don’t have to work in a physical manner | You may not see your kids often |
You can work indoors | You will make many sacrifices for your career |
Should You Work For A Hedge Fund?
While working for a hedge fund can be great since you can make really good money and will also have excellent exit options, you should also know that a hedge fund manager career can be pretty stressful and you also need to be really smart to get a job in this field.
In the end, you have to evaluate all the advantages and disadvantages of working for a hedge fund carefully so you will be able to make the best possible decision in this regard.
If you don’t want to work for a hedge fund anymore, you may also want to have a look at the following articles:
Advantages and disadvantages of becoming a financial analyst
Advantages and disadvantages of becoming an investment banker
Advantages and disadvantages of becoming a loan officer
Sources
https://www.statista.com/topics/5064/hedge-funds/
Own research and interviews.
About the author
My name is Andreas and my mission is to educate people about the different career paths that are possible in our current state of the world.
In my opinion, people often make the mistake to choose their profession solely based on how much money they can earn from it instead of doing what makes them really happy.
This is quite sad and I just want to give people a more objective picture of what a fulfilling career could look like. I did the same when I started working in consulting after finishing my Master’s degree in Economics.
However, I’ve quit pretty soon after that since I haven’t found true meaning in my job.
Now I can do what I really love to do and I want to enable as many other people as well to go this exciting path towards happiness instead of money.
I conducted various interviews with employees to give you a good impression of what working in different fields will look like and that you can make the best possible decision regarding your future career choice.
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