HEDGE FUND TRAINING

WHAT ARE HEDGE FUNDS?

Hedge funds are portfolios of investments that are managed by aggressive investment strategies. Getting in on a hedge fund requires a substantial initial investment and a certain period of time over which the investor has to keep their money in the fund. They are also restricted to a limited number of people. Thus, hedge funds are generally available to sophisticated, accredited investors only.

What makes investing in a hedge fund especially lucrative is the high return. As expected with investments, the high return seen in hedge funds is accompanied by higher than average investment risk. In order to meet their investors’ expectations about returns, hedge funds need to adequately manage the investment risk associated with their portfolios, the main priority being reducing (also known as ‘hedging’) the risk while optimizing the return on investment.

SKILLS REQUIRED TO WORK AT A HEDGE FUND

In addition to being accredited, i.e., earning a given amount annually and having net worth of at least US$1 Million, investing in a hedge fund also assumes a certain extent of investment knowledge on behalf of the investors. Therefore, consulting such clients requires a thorough understanding and appreciation of the risk- and return-driving factors of investments, as well as being able to make projections about how to expect the value of an investment to change over time. Finance professionals who work for hedge funds make largely speculative investments and base these on decisions they make after carefully analyzing the dynamics of the hedge fund portfolio at any given moment. This requires solid valuation and modeling skills honed by consistent practical application. Professionals determined to develop a career working for a hedge fund will need to dedicate the time to develop these skills before they can apply for such vacancies. Additionally, the consultancy nature of working in this particular sector entails in-depth understanding of the Finance industry, keeping up with current events and trends and having impeccable soft skills that will be needed to forge relations, acquire clients and win business for the company. The IFI Investment Banking Training Course will facilitate you in all of the above – from understanding the fundamentals of investing, financial modeling, valuation of corporations, interpreting financial statements, getting practical and professional experience, to consulting your client and dealing with potential roadblocks.