Hedge Fund Manager

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Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades.

Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

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Updated August 5, 2020

What is a Hedge Fund Manager?

A hedge fund manager is an individual responsible for directing all activities associated with the operation of a hedge fund.

How do Hedge Fund Managers work?

The role of a hedge fund manager is similar to that of a mutual fund manager. Hedge fund managers are primarily responsible for running a hedge fund's daily affairs and for making ongoing investment decisions regarding the composition of the fund's portfolio. A hedge fund manager manages a fund's risk and return, marketing strategy, and capital funding from unit sales.

Why do Hedge Fund Managers matter?

Hedge fund mangers are compensated handsomely, but they also face tremendous pressure because of the high risk of the portfolios that they manage. It is debatable how much influence the actions and skills of a hedge fund manager have on the long run return of the fund's portfolio. The difference between the return of the hedge fund and a predicted rate of return is called "alpha." In other words, alpha is a measure of the skills of a hedge fund manager.

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Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Hedge Fund Manager, then please ask Paul.

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