Different Hedge Fund Departments and Jobs? | Finance Explained
Рет қаралды 23,506
Күн бұрынHedge funds can seem very complex or confusing. In today's video I break down how a hedge fund is run, what departments are used and what jobs can you get in a hedge fund. There is a lot more to a hedge fund thanks just trading, buying and selling stocks, people have to manage risk, compliance, and investors. In this video, I talk about each of the different departments, what they do and how they plan an important part in keeping the business successful.
Let me know your thoughts on this video, I tried to address as many questions as possible. I hope this helps you out, please leave a comment below or ask me on Instagram if you have any questions.
Timestamps:
Intro - 0:00
Thank You - 1:08
Portfolio Managers - 2:10
Traders - 3:48
Research Analysts - 4:48
Operations Team - 6:26
Risk Team - 7:55
Compliance Team - 11:00
Sales/Capital Raising - 12:41
Investor Relations - 14:17
Summary - 15:42
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@user-xi8yk3kg9g 11 ай бұрын
thanks, this was a great overview of the different roles and how they work together to benefit the ecosystem of the fund. I'm having my third interview at a hedge fund platform company that provides front-middle-back office solutions to PM's, the role I apply for entail multiple responsibilities that you covered here - great video for me
@victorias2399 4 ай бұрын
Hey Max, your video just popped out! What a lovely surprise! Long time not seeing you since Trium. Best wishes. Victoria
@Alex-im4zi 3 жыл бұрын
Btw, great video! Keep it up! You deserve a bigger audience! 💯
@MaxRobins 3 жыл бұрын
Thank you very much, share it with your friends or your insta story, that would be super helpful :)
@seiXrou 3 жыл бұрын
Thanks for the great insights you provide! :)
@MaxRobins 3 жыл бұрын
Glad you like it, happy to do more!
@gaychase7216 Жыл бұрын
Awesome video, I’ve been looking to get into hedge fund compliance.
@MaxRobins Жыл бұрын
Thanks for your support, good luck!
@deepakdhole8814 3 жыл бұрын
Thanks for the Video, just exactly what I wanted :-)
@MaxRobins 3 жыл бұрын
Glad to hear, thanks for supporting!
@slcg214 3 жыл бұрын
Hey Max! Which part of the fund are you in? Also, you could make a video on things you did outside of formal education to learn about finance (e.g. books, courses outside of uni, etc.).
@MaxRobins 3 жыл бұрын
Hi Sean? I work in the Sales/Capital Raising side :) Thanks for the video idea, I think that could make a great video!
@edwardchida2563 11 ай бұрын
Very informative..thanks
@wolfsmusic1180 2 жыл бұрын
THANK YOU SO MUCH BRO !!!! EARNED A SUB!!
@MaxRobins 2 жыл бұрын
Glad you enjoyed it! - thank you for subscribing too!
@Chabatmazen 3 ай бұрын
Excellent job G
@DrSlater 2 жыл бұрын
Love this, keep going bro 🚀
@MaxRobins 2 жыл бұрын
Thank you!
@misterllemos 2 жыл бұрын
Great videos! Can you do a video revolving around the sales team more please?
@MaxRobins 2 жыл бұрын
Thank you, I would love to do some more videos on that for sure - just need a bit of time...
@asiafahad-lg7dv Жыл бұрын
Thanks for this free knowledge bro. Please Could you explain how the Traders department works?
@mohinijindal9873 Жыл бұрын
Hey Max, great video. Could you tell me where would a fund accountant lie in this chain of roles?
@M.R1429 2 жыл бұрын
Hey Max, great video! Do you think you can make a video on how one would go about getting to a front office role from the back office? E.g operations to investment analyst.
@MaxRobins 2 жыл бұрын
Great idea for a video, happy to look into it as it is certainly possible, a good friend of mine did just that!
@M.R1429 2 жыл бұрын
@@MaxRobins Would be amazing and very informative!
@nimish9551 Жыл бұрын
Hey Max, thanks for the informative video! :) I have a question, is it possible to work directly as a pm after I graduate ( I'm in my 2nd year). And would you advice to start as a pm first or research analyst.
@Higtyhhh 4 ай бұрын
Can you please make a video about the softwares, brokerage and programs used at hedge funds?
@penwille399 3 жыл бұрын
yessir max love to see it
@MaxRobins 3 жыл бұрын
Haha thank you💯
@Alex-im4zi 3 жыл бұрын
I agree with the importance of sales team and the need of raising capital, but I think you should have commented about liquidity, if the stocks you invest in are not liquid enough you will find your self unable to manage more money. Either way, great content. 🤜🏻
@MaxRobins 3 жыл бұрын
Interesting, I think liquidity is indeed very important, maybe a future video 🧐
@Alex-im4zi 3 жыл бұрын
@@MaxRobins maybe elasticity of suply and demand of shares as the price is altered too, some valuation techniques would be great also(and how to take into account the sector you are valuating) you could also do a video of ''where to find the information about companies?'' afterwards one of '' how to interpret financial statements''!! Just letting here some ideas that might help you, I want to see you gain fame Max, I like your channel.
@rahulrajendran2724 10 ай бұрын
One thing i would love to know what time frame do these hedge fund managers operate at , For eg if their KPI is done on a monthly quaterly or yearly review. This would influence there trade decisions.
@carterfinance2376 2 жыл бұрын
Great channel very underrated
@MaxRobins 2 жыл бұрын
Thank you!
@sergedanel6736 2 жыл бұрын
do you have a video on public speaking, the way you present things is inspirational
@MaxRobins 2 жыл бұрын
Thank you very much. I currently don't have a video on public speaking, but I do have a video on first impressions which may be helpful as I talk about Body Language etc which is something I use a lot. The best advice I can give is to practice it as much as possible, try host talks for Schools/Universities or even local events to get more used to it.
@vhmotam 2 жыл бұрын
Hey Max! First, excellent video! I have a doubt. I recently started working as a financial advisor, in a medium-sized office, and I'm in my 1st year of college for economics. What do you think I should do to work at a Hedge Fund as a research analyst, and then become a portfolio manager? (I'm Brazilian, but here we also have funds with a similar vibe)
@MaxRobins 2 жыл бұрын
Thank you for watching, glad you enjoyed it. I would look to try and do your CFA or IMC while you are at college (as that really help) and then I would join an investment society and try to build you network with some Funds that you know via LinkedIn (I have a good video on that).
@Ad000121 10 ай бұрын
Are there any courses that i can take for these roles
@raymondfrancis2983 2 жыл бұрын
Could you put up a hypothetical P&L, Balance Sheet & Cash Flow Analysis as well as a Cap Table for a hedge fund ! Along with possible pay & bonus payouts
@MaxRobins 2 жыл бұрын
Hi Raymond, thank you for the suggestion. Funnily enough the Balance sheet of a HF is quite simple, as the only cash inflows are coming from the Management Fee's of the Assets Under Management which ranges from 0.5% to 2.5% typically, and the Performance Fee, which ranges from 10% to 30% typically. The costs include Staff primarily, research material, and typical operational costs. Regarding bonus', it depends on the role, investment staff may get a % of fees generated, and the rest of the staff is normally discretionary based.
@raymondfrancis2983 2 жыл бұрын
@@MaxRobins Thanks, I saw a typical P&L from a link on a old Gawker post
@shanechiu726 2 жыл бұрын
Great video. I’m interested in which college major did you go to and how did you get employed at your current fund.
@MaxRobins 2 жыл бұрын
Thank you! I studied a Double Major in Economics and Business with Minor in Mergers and Acquisitions. I got employed via LinkedIn networking, I have a couple videos on my channel that discuss this if you are interested.
@shouryachakravarti4025 2 жыл бұрын
Hey Max, hope you’re doing well. I just saw your video on the different departments in a hedge fund and it was really helpful! I’m a 2nd year BSc Accounting & Finance student at University of Warwick in the UK. 1. Do you have any tips for applying to the investment relations internship at the DE Shaw Group? 2. Information about the roles and responsibilities of an investment relations intern in a hedge fund? (since I know you worked in sales/fund raising which is closely linked to IR). Any help is much appreciated, thank you so much!
@MaxRobins 2 жыл бұрын
Hi Shourya, glad to hear you found the video helpful! 1. I would look at my video series on LinkedIn and my first video on how I got into hedge funds. At this stage, it comes down to a combination of networking. I would look to find the Head of IR for the group you want (try not to limit yourself to only one fund provider), and speak to them that you are interested to learn more etc (definitely look at my videos where I explain this in detail). 2. I did a lot of IR in my first year, the main responsibility is maintaining marketing material such as presentations, factsheet's and assisting clients/investors with their DDQ (Due Diligence Questionnaire) requests. Also may be doing research on investors for the IR team.
@caesaraugustus7587 Жыл бұрын
DE Shaw is a quant fund. Wouldn't you need STEM like mathematics/applied mathematics, computational finance, computational mathematics, etc?
@bhargav7476 3 жыл бұрын
I'm in the final year of my Bachelor of Data Science, I'll be appearing for CFA L1 this November. What masters should I go for? and What's the career path to a Portfolio Manager at a Hedge Fund? Really insightful video, thank you.
@MaxRobins 3 жыл бұрын
Hi Gav, Good luck with your CFA Level 1. If you want to go into the Portfolio Manager path I would make sure you do a masters in finance, financial analysis, econometrics or advanced mathematics. Those courses will do you well and then you can leverage that for internships etc. Check out some of my videos on linked and on hedge funds as I explain the way to get a internship.
@bhargav7476 3 жыл бұрын
@@MaxRobins Thankyou, I'm Asian (good at maths) I might consider advance maths.
@MaxRobins 3 жыл бұрын
@@bhargav7476 ahah good idea, this course lends itself particularly well to Quant hedge funds too.
@projectkev9213 2 жыл бұрын
@@MaxRobins I am a rising senior for a B.A. in business and minor in computer science. I am also pursuing my CFA level 1 and SIE before graduation. I will pursue a masters if I can't break into IB or HF. Will an MBA be fine as well?
@usmanmirza98 3 жыл бұрын
good stuff mate
@MaxRobins 3 жыл бұрын
Thank you!
@davidsoyebo8952 Жыл бұрын
Hey Max, are there also quants in Hedge funds?
@shikharverma7264 7 ай бұрын
Hi My name is Shikhar Verma I am from India and I want to know how hedge fund work and what is the business model of hedge fund and is there hedge fund in India ... All about the hedg fund please make the video on this topic ... Love from India ❤
@apexanimationz9291 11 ай бұрын
You're the best
@lakshay534 Жыл бұрын
Make a video on how to start a hedge fund.
@mohamedmohamedabdallah13 Жыл бұрын
ty great effort
@MaxRobins Жыл бұрын
Thank you for watching!
@ezhilarasan1292 Жыл бұрын
Hey max, I love your videos. But unfortunately, you didn't post any video now. Please make hedge fund-related videos.
@J.T.A 2 жыл бұрын
Do PMs have multiple analysts assigned to them? And are individual PMs paid a certain percentage of the money they return like 10% or 5%?
@MaxRobins 2 жыл бұрын
It depends on the Fund and the company. Some PMs will have multiple analysts but this is typically if they are established and managing a substantial amount of money. Many PM's start out on their own. For remuneration it also depends, but typically they get a % of the management fee and a larger % of the performance fee, which is split with the company they work for.
@VictorSterling549 3 жыл бұрын
Could you do a day/week in the life of video?
@MaxRobins 3 жыл бұрын
Good idea, will look to do this as a video!
@alexanderkononov1862 2 жыл бұрын
When you are saying (research) analyst or trader, what is the difference to a quant hedge fund and a quant (research) analyst or quant trader?
@MaxRobins 2 жыл бұрын
So in general, a Trader is typically defined as the person that actually executes the trades, assessing factors like market volume, the size of your order and price. The Analyst's role is to support the PM with research and doing data analysis. There is no main difference with a quant fund, other than the focus may be more on working with the algorithms and testing/modifying them. Some algorithms will buy the securities too, sometimes they just recommend what to buy and then its up to the PM and Trader to execute on that.
@connoravila Жыл бұрын
I have a questionb8s there a field within hedge fund where 8 can do it with film because I'm trying to find something that ties film and finance,but makes shit tons of money
@MaxRobins Жыл бұрын
Interesting question, there are certainly possibilities where you help financial firms with their branding and marketing. Or you could look to do a series where you delve into the lives of what its like to be at these types of firms?
@connoravila Жыл бұрын
@@MaxRobins thanka
@davone_ward 2 жыл бұрын
Could you get a job at a hedge fund if you have your SIE and series license, some college but no degree?
@MaxRobins 2 жыл бұрын
It is possible but certainly a bit harder. I would suggest taking an alternative route by working in a hedge fund servicing business and then working your way through there.
@1MrMikeyDTV1 3 жыл бұрын
Please a list of books to read and resources!!
@MaxRobins 3 жыл бұрын
Hi, would read the following books: The Intelligent Investor, Barbarian at the Gates and The Alternative Answer. I haven't read "The Little book of Alternative Investments", but I have heard it is really good. Also if you are interested I would go on KZfaq and watch a few podcasts and interviews to learn more.
@Alex-im4zi 3 жыл бұрын
If I wrote a propper investment thesis could that show my knowledge, analysis skills and subtitute a college degree when trying to get into a hedge fund?
@MaxRobins 3 жыл бұрын
It would certainly help and would be useful to discuss when networking and particularly in an interview, but getting a good degree is very important nonetheless!
@Alex-im4zi 3 жыл бұрын
@@MaxRobins I, as a self tought feel like college has some inneficiencies which I would like to not have to deal with. Although... I am currently looking at several universities in Zürich, UZH specially(Einstein studied there btw!) , I feel tempted to apply there, London also calls my attention. Any reccomendations about this? I will surely keep learning by my own, I have a huge thirst for knowledge, from finance to geopolitics to economics.
@dck4116 2 жыл бұрын
great!
@MaxRobins 2 жыл бұрын
Thank you for watching!
@VAIBHAV_PODDAR 2 жыл бұрын
Love from India♥️ hope meet you soon
@MaxRobins 2 жыл бұрын
Thank you for your support!
@EmilysLife 2 жыл бұрын
tyyyyyyyy max!
@MaxRobins 2 жыл бұрын
Your welcome, glad it was helpful!
@andresribas1060 2 жыл бұрын
If you work for a hedge fund can you not just buy options on whatever they’re buying or selling and make thousands ??
@MaxRobins 2 жыл бұрын
No, you have to record something called your personal dealings and share that with your compliance department. If you followed what the Fund bought and sold it could be considered insider trading (if there is asymmetric information to the market)
@andresribas1060 2 жыл бұрын
@@MaxRobins people do insider trading all the time. Lmao hedge funds fuck over the regular retail investor and their employees 😂
@onwrdandupwrd5303 2 жыл бұрын
Is sales front office?
@MaxRobins 2 жыл бұрын
In a Hedge Fund, Sales would typically be considered a Middle/Back-Office role, as Front Office normally suggests Investment etc. However, I personally would considering Sales more front-office as you are ultimately client facing and you pretty much have the most important role in the firm as you are what makes the business profitable.
@finnwheatley2194 2 жыл бұрын
Nice video. You forgot the tech team tho :(
@MaxRobins 2 жыл бұрын
Hi Finn, thank you, yes unfortunately I did, but yes indeed they are an important team to makes sure everything should work!
@G7FX_REVIEWS 8 ай бұрын
I can tell you now you dont need all those people one person can do all those roles.
@jaredhosford7867 Жыл бұрын
Dude, can you put a pause button on your vids to mute the tunes. My hearing has to compete with the DJ.
@jaredhosford7867 Жыл бұрын
Perhaps do two vids. One with tunes and one without. Increase your youtube ad-revenue.
@yearn4648 2 жыл бұрын
can you get me a job in a hedge fund
@MaxRobins 2 жыл бұрын
I can't get you a job, but if you have a look at some of my videos it can certainly help you with the process!
@harryallen25 2 жыл бұрын
Didn’t talk about finance team 🥲
@MaxRobins 2 жыл бұрын
Very true, they have an important role too but typically that is a "business function" rather than a Hedge Fund specific one
@marinac2299 5 ай бұрын
The background music is very distracting and loud.
@shashanksen8386845629 9 ай бұрын
Hello max, I’m a data engineer working on cloud technology, in financial domain. Looking for a change to work for hedge funds. I’m finding it hard to get a proper way to get job , can you help me understand how and where to start, would be a great help. Thanks in advance
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