| Hedge funds are providing research
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| | catcher or a pitcher."
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| analysts with new career paths, though
| |
| | In a "typical long-short equity,
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| their role varies hugely from fund to
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| | fundamentally based hedge fund - a place
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| fund. "A lot of funds are set up in such
| |
| | like Viking," Arian says, analysts
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| a way that analysts are responsible for
| |
| | support the portfolio manager by
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| telling the traders what to buy or sell
| |
| | developing ideas or conducting company-
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| up to a certain dollar amount," explains
| |
| | or sector-specific research to find
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| an executive at a Connecticut hedge fund
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| | "relative value plays in an industry."
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| who did not want to be named. This
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| | Typically, portfolio managers evaluate
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| particular fund has industry analysts,
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| | ideas from several analysts in deciding
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| "such as a health care analyst who
| |
| | how to invest the capital they have
|
| specializes in health care companies and
| |
| | on-hand.fund investing in
|
| makes recommendations which could be on a
| |
| | credit-sensitive mortgage-backed
|
| company, an index, or some kind of basket
| |
| | securities would have at least one
|
| trade," as well as generalists who might
| |
| | analyst going through data to predict how
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| be asked by portfolio managers to
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| | different types of bonds would behave
|
| research a trading idea or a specific
| |
| | under certain changes in interest rates
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| company.
| |
| | and credit spreads.
|
| Other analysts develop ideas on their
| |
| | Arian says hedge fund analysts earn at
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| own, then present them to the portfolio
| |
| | least $100,000 a year. Their pay can rise
|
| manager to explore why a company should
| |
| | reach several million dollars annually.
|
| be included in the portfolio as either a
| |
| | Working on the buy side, analysts have to
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| long or short position.
| |
| | be comfortable with the fact their firm
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| "Hedge fund analyst" is a broad term,
| |
| | is investing in their recommendations,
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| notes Peter Arian, managing director of
| |
| | observers say. "The typical sell side
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| Analytic Recruiting in New York. "It's
| |
| | researcher never has to put his money
|
| like asking what a baseball player does -
| |
| | where his mouth is," Arian says.
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| the answer depends on whether he is a
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| |
|
