During our recent Q & A session with financial mastermind Scott Tominaga there were so many questions aimed at breaking into the world of finance that we wanted to write a follow up piece with more specific information. Scott was also asked a lot about how to get into a hedge fund so we’ll also be addressing that today. In terms of breaking into the finance industry the same rules that we apply to hedge fund careers also apply to many other jobs in the financial sector, so you can consider this us killing two birds with the same dollar sized stone.
Research and Learning
The first step to breaking into a hedge fund or the world of finance is to do your research and make sure that you are studying the industry as early as you possibly can. Hedge Funds are also something which everyone who goes into finance should know about because of the large impact which they can have. Essentially a hedge fund is a vehicle by which investors can trade on the stock exchange or in the futures market. Funds raise capital and then make trades on their investors behalf, these funds enable large amounts of capital to be raised which means that higher levels of movements can be made to secure small yet plentiful profits. Everyone in finance should know about hedge funds because they have the power to manipulate the economic forecast, they are the most common place for investors to put their money and banks also depend on them for their own investments.
Looking for Mentors
You need someone to take you under your wing in a hedge fund and show you the way of the world, so this is something which you should be looking for. You need to identify the right hedge fund and management team, and then show your resolve, your commitment and your hunger for learning, even if this means that you don’t make much money in the beginning. There are some internships which you can find offered by hedge funds so keep an eye out for those.
Finding a Niche
One you have been given the chance to learn the industry, both through the studying which you have done with newsletters, books and magazines, plus the work which you will hopefully have achieved through an internship or experience, it is time to find a niche. You need to know where you fit into the industry so maybe think about where your passion lies and hone in on that. Be it emerging markets or blue chip industries, find your niche and own it.
Tips
This is a competitive industry and there are no hand outs, if you can’t see jobs advertised then start cold calling and forcing hands.
Don’t worry if you don’t have an Ivy League education, this can help you of course but it will come down to what you say and the actions you take that will depend on your success.
Most of these positions are heavily based on bonuses and commissions so don’t expect a high salary unless you’re willing to work for it.