Hedge Fund Manager

In everyday usage, we often use the terms hedge fund and hedge fund manager interchangeably, but the two terms are distinct. A hedge fund is a type of investment fund (more what distinguishes a hedge fund from other investment funds, here). The hedge fund manager oversees the hedge fund.

We often think of a hedge fund manager as being an individual. Chief Investment Officers and portfolio managers are often described as being hedge fund managers. While this is a valid definition, within the industry we also use hedge fund manager as a term to describe a firm that oversees one or more hedge funds. Used this way, a hedge fund manager may employee analysts and portfolio managers to make investment decisions, but the hedge fund manager will likely also employee accounting, legal and technology professionals.

Hedge funds will usually have a board of directors, but they will not have employees. The people making investment decisions and overseeing the administration of the fund work for the hedge fund manager. When somebody says they work for a hedge fund, what they really mean is that they work for a hedge fund manager.

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