hedge fund hierarchy
what's the general hierarchy like?
analyst - > associate - > pm -> partner - > PRESIDENT/CEO/CIO ?
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Depends a lot on the size from what I have seen. One fund I interviewed with had basically two titles: analyst and PM (excluding the ops guy and an accountant who got to call himself the CFO). Bigger funds, especially multi-strategy ones, may have more complex structures with MDs, multiple PMs, intermediate titles like VPs, etc
Take a look at TCW's website for an example of this: https://www.tcw.com/About_TCW/Our_People/Investment_Management.aspx
From my experience (limited to what I saw on interviews and word of mouth as I've only worked at one fund) larger funds are also more likely to make a distinction between the CEO as head of the business and CIO as head of investment strategy. A multi-billion firm with a bunch of strategies and a lot of funds with different investment teams is more likely to need a true operational executive.
The fund I work for is basically like what you described though we call the associates senior analysts and we only really have two partners, one of whom is the CEO/CIO. We also have a COO who runs ops and accounting.
to be a hedge fund trader do you have to pretty much go to ivy league or can you really do the prop trading>hedge fund trader path?
You can trade for a hedge fund out of almost any school and you don't have to prop trade first. I met a guy recently that started at Raymond James as a product analyst and is now the head trader for a 7 billion dollar fund. Just a matter of how bad you want it and a little luck sometimes.
Being an analyst at a typical hedge fund is not the same as being a trader - analysts call the shots and traders execute ideas in the standard fundamental hedge fund setup. Be careful not to use 'analyst' and 'trader' interchangeably since the roles are somewhat different in most cases.
it's more like
partner. . . . . . .
b*tch
the vault guide has a decent breakdown..
main fund manager
portfolio manager(s)
research analyst, trader
junior analyst, assist trader (if there is)
Analysts present ideas to a PM and the PMs have the final say on if it gets executed. Some funds give the traders ability to "trade around the core position" meaning if the fund wants to hold a 500k share core position then maybe the trader can take on a short term 50k trading position making the net position between 450k and 550k shares or perhaps the trader uses some options for hedging strategies. Obviously its not arbitrary amount it depends a lot on risk parameters.
these titles are totally meaningless and are different at different firms. I have worked at two hedge funds in my career and at one "trader" meant the portfolio manager who had balance sheet and made the decisions and at the other "trader" meant the guy who just executed the trades and made no actual decisions. The bottom line is that the goal at a hedge fund is to get paid based on your own or the funds performance because that is where all the upside is. At a multi-manager fund like Tudor or Moore that means trying to get a piece of the balance sheet to manage whereas at a smaller firm or at a firm that is "single manager" (ie one guy runs the whole book) that means trying to become a partner or at least having the "big guy" pay you based on whether your ideas work and not a flat fee for grunt work.
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