A hedge fund analyst is responsible for following the financial news and assessing the trends of the market. Usually, HFAs spend a large amount of time on the Internet reading reliable sources of news and collecting information that can prove valuable for the fund’s portfolios. In addition, fund analysts suggest potential investments to the fund manager based on the analysis they perform, thereby recommending certain stocks or bonds . Once the investment is undertaken, and the fund manager chooses the suitable strategy, the analyst should monitor if the strategy is fruitful or if there is room for improvement.
In a nutshell :
- A hedge fund analyst is tasked with providing guidance to a portfolio manager on how to best structure the hedge fund's investment portfolio.
- A hedge fund analyst works for a hedge fund, as opposed to another type of buy-side institution. With hedge funds, alternative asset classes, derivatives, and short or delta-neutral strategies may be used.
- Hedge fund analysts are tasked with finding investment opportunities based on research and due diligence, recommend them to portfolio managers, and then monitor risk and performance.