Roles vary from hedge fund to hedge fund, depending on their business size, number and expertise of employees and current projects, but a few roles and responsibilities might include:
Liaising closely with clients a portfolio manager will discuss and advise on their investments, generally specialising in investments in one area, i.e. IT, derivatives, etc. They will track the market, have advanced knowledge of financial models and concepts and advise accordingly, in order to capitalise on market increases and reduce the client’s deficit when the market falls.
A research heavy role, an analyst must have a head for numbers, financial modelling, analysing data and suggesting and discussing their findings or ideas with colleagues. They will specialise in one area, e.g. derivatives, futures, etc. where their research will be based. They will be expected to read through reports, economic news and data and financial reports.
A junior trader is managed by the senior trader and would report to them. Some Junior Traders may have their own small clients to work with. This work would be monitored by the senior trader. They would also liaise with potential clients, informing them about their firm’s investment strategy and support the senior trader in their orders.