10 Best States For Hedge Fund Managers In 2024 - Zippia (2024)

FAQs

What is the best state for a hedge fund? ›

The U.S. remains one of the best countries on earth in which to start a hedge fund and, within the United States; Delaware is considered one of the top states for establishing a hedge fund due to its business friendly environment.

Conclusion. Choosing the best jurisdiction for registering a hedge fund depends on various factors, including regulatory environment, tax efficiency, infrastructure, and investor protection. The United States, Cayman Islands, Luxembourg, Ireland, and Singapore each offer unique advantages and some drawbacks.

Most companies require their hedge fund employees to have a bachelor's degree in finance or economics. At the same time, many companies also require a master's degree on top of that, so a hedge fund manager would normally have at least these qualifications.

According to an eFinancialCareers.com analysis of its curriculum vita database, the following U.S. colleges are the most popular for hedge fund professionals: Columbia University, New York University, University of Pennsylvania, Cornell University, University of California, Harvard University, University of Chicago, ...

New York City

New York is home to major investment banks, hedge funds, and law firms. It's also a central global player in asset management, with firms managing trillions of dollars in assets, as well as major firms in foreign exchange, financial technology, insurance, and private equity.

Ken Griffin, the founder and CEO of Citadel, is currently the richest hedge fund manager, with an estimated net worth of over $30 billion as of 2024.

Kenneth Griffin

Citadel has now made $74 billion for investors since its inception in 1990, more than any other hedge fund firm.

Greenwich: Often referred to as the hedge fund capital of the world, Greenwich, CT, hosts 2.6% of global hedge funds and 4% of those in the US. The city is renowned for its investment-centric atmosphere and some of the largest funds by assets under management (AUM).

In 2023, the highest-paid hedge fund manager was Ken Griffin of Citadel, who earned $4.1 billion. He was followed by Izzy Englander of Millennium Management, who earned $3.2. billion.

How many hours a week do hedge fund managers work? ›

Hedge Fund Analyst Hours and Lifestyle

At smaller, single-manager funds, the average might be 10-12 hours per day, for a total of 50-60 hours per week (weekend work is rare). As you move to larger, multi-manager funds, the hours and stress get worse, so the average may be more like 60-70 hours per week.

There's no real prescribed target, but you should aim to have at least $5 million in AUM to be successful, while $20 million will make you noticeable to investors. Having $100 million will get you noticed by institutional investors.

The reigning champion for New York large-cap private equity is without a doubt, the University of Pennsylvania, which is home to Wharton. Wharton isn't just a private equity powerhouse – they're quite likely the best school for any buyside job, including hedge funds and possibly venture capital.

Hedge fund managers typically earn above-average compensation, often from a two-and-twenty fee structure. Hedge fund managers typically specialize in a particular investment strategy that they then use to power their fund portfolio's mandate for profits.

They found that the median age of a hedge fund manager is 48. The majority of hedge fund managers are between 40 and 60 years of age.

Typically, hedge funds are set up in low-tax jurisdictions such as the Cayman Islands or Jersey, where access to treaty benefits is limited. However, more hedge funds are considering using treaty platforms (e.g., Irish ICAV) to manage the risk of withholding taxes.

A hedge fund manager may be required to register as an investment advisor with the manager's home state, although registration requirements and available exemptions vary from state to state. A hedge fund manager is not eligible for registration with the SEC until the manager has greater than $25 million in AUM.

The most hedge funds are established in best offshore centers such as the Cayman Islands, Singapore, Dublin, Luxembourg, the British Virgin Islands, and Bermuda which have different regulations concerning non-accredited investors, client confidentiality and fund manager independence.