what is a hedge fund manager

A hedge fund manager is a financial company or individual who manages, makes investment decisions, and oversees the operations of a hedge fund. They are responsible for overseeing investment accounts, typically at a hedge fund, and help investors manage investments, tracking liquidity and giving advice about fees. To be successful, a hedge fund manager must consider how to have a competitive advantage, a clearly defined investment strategy, adequate capitalization, a marketing and sales plan, and a risk management strategy. Hedge fund managers typically earn above-average compensation, often from a two-and-twenty fee structure from investors. They typically specialize in a particular investment strategy that they then use as their fund portfolios mandate. Fund managers may employ extensive risk management strategies in order to protect the fund and investors. Hedge fund management firms are often owned by the managers in charge of the portfolio, meaning that they are entitled to a large amount of the profits that the hedge fund makes.