Many people seek the career of a hedge fund manager because of its constant demand and well known high salary. Unlike other high paying careers that also require intelligence and dedication, being a successful hedge fund manager isn’t just dwindled down to mere education and ambition. To be lucrative and successful in this career choice, an individual needs to have a competitive advantage to thwart the other individuals pursing the same dream. In order to shine through the ambitious competition you must also have a definitive investment strategy, adequate capitalization, a marketing sales plan as well as a risk management strategy in case you find yourself in a bind.
As a hedge fund manager like Ken Griffin on wsj you have a quota you must fill regarding income and net worth, and they all very depending on your position, company and type of hedge fund investment. As the manager you will be completely responsible for investment decisions regarding the fund and its operations. Hedge funds aren’t always a sure shot either and are considered a very high risk because of their aggressive investment strategies and are subjected to significantly less regulation. Because of the lack of regulations, hedge funds can invest in a broader spectrum than a traditional mutual fund. Though many hedge funds do invest in the traditional things such as stocks, bonds, real estate and commodities, they are still better known for their risky strategy and aggressive nature. Some hedge funds follow the pattern known as the long-short strategy where they buy a stock which is seen as long term investment or sell stock with borrowed money then buy it back later when the price is significantly lower.
Many hedge fund managers who find success in the trade go on to create their own companies and delve deep into the investment world to continue to make their money. As of March 2015, well known American hedge fund manager Kenneth Griffin reportedly has $25 billion in investment capital. Griffin is the founder and CEO of Citadel which is a global investment firm and happens to be one of the world’s largest alternative investment management firms. Griffin started his interest in money early, having invested for the first time his freshman year. In his second year he created a hedge fund that capitalized at $265,000 and his strategy preserved his capital when the stock market crashed in 1987. He then went on to launch a second fund and between the two he was managing over $1 million.
Griffin has been mention in Forbes Magazine twice, one as on of 2012’s highest earning hedge fund managers and a second time as one of the Forbes 400. Griffin recently donated $150 million to the Harvard financial aid program seeing as he himself attended the prestigious school and still stands as the single biggest donation to the school on record. He is a widely known and successful hedge fund manager and symbolizes the wealth and success of the competitive island that floats among the sea of investment options.