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Hedge fund manager vs finance advisor

The differences between hedge fund managers and finance advisors can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 8-10 years to become a hedge fund manager, becoming a finance advisor takes usually requires 2-4 years. Additionally, a hedge fund manager has an average salary of $135,399, which is higher than the $64,993 average annual salary of a finance advisor.

The top three skills for a hedge fund manager include hedge funds, derivative and private equity. The most important skills for a finance advisor are team support, wealth management, and securities.

Hedge fund manager vs finance advisor overview

Hedge Fund ManagerFinance Advisor
Yearly salary$135,399$64,993
Hourly rate$65.10$31.25
Growth rate10%15%
Number of jobs2,225106,311
Job satisfaction--
Most common degreeBachelor's Degree, 74%Bachelor's Degree, 74%
Average age4745
Years of experience104

What does a hedge fund manager do?

A hedge fund manager manages an investment pool, popularly called a hedge fund. This entails managing liquid assets that have been contributed by a limited number of investors who have met a certain net worth investment. They oversee this fund and make investment decisions for this fund, including running its daily affairs. Another part of their duty is to monitors stock markets and choose which assets to buy. They may also have to make money by using several investment techniques such as selling or leveraging.

What does a finance advisor do?

A Financial Advisor specializes in sharing their expertise with an individual or company on how to handle and boost finances. The responsibilities of a Financial Advisor include creating and proposing a strategy to attain financial gains through profits and investments, educating the client about new methods and opportunities, monitor and evaluate progress, and as well as plan policies according to the clients' life changes. Furthermore, it is also the duty of the Financial Advisor to research new investments that would be of great help to the client's assets.

Hedge fund manager vs finance advisor salary

Hedge fund managers and finance advisors have different pay scales, as shown below.

Hedge Fund ManagerFinance Advisor
Average salary$135,399$64,993
Salary rangeBetween $70,000 And $261,000Between $34,000 And $121,000
Highest paying CityRochester, NYNew York, NY
Highest paying stateNew YorkNew York
Best paying companyKforceEnbridge
Best paying industryInsuranceFinance

Differences between hedge fund manager and finance advisor education

There are a few differences between a hedge fund manager and a finance advisor in terms of educational background:

Hedge Fund ManagerFinance Advisor
Most common degreeBachelor's Degree, 74%Bachelor's Degree, 74%
Most common majorFinanceBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Minnesota - Twin Cities

Hedge fund manager vs finance advisor demographics

Here are the differences between hedge fund managers' and finance advisors' demographics:

Hedge Fund ManagerFinance Advisor
Average age4745
Gender ratioMale, 74.2% Female, 25.8%Male, 72.3% Female, 27.7%
Race ratioBlack or African American, 7.6% Unknown, 4.7% Hispanic or Latino, 12.8% Asian, 9.0% White, 65.2% American Indian and Alaska Native, 0.7%Black or African American, 5.6% Unknown, 4.4% Hispanic or Latino, 9.5% Asian, 8.3% White, 72.1% American Indian and Alaska Native, 0.1%
LGBT Percentage10%5%

Differences between hedge fund manager and finance advisor duties and responsibilities

Hedge fund manager example responsibilities.

  • Manage derivative credit risk for transactions with mutual and pension funds.
  • Manage a portfolio of equities and options within the technology and energy sectors.
  • Manage short term interest rate risk management utilizing basis swaps to modify portfolio duration.
  • Perform month-end closings including calculations of final NAV, performance and partner allocations.
  • Research all sensitivity factors that may have an economic effect on the fund's NAV.
  • Develop financial and risk models, negotiate margin and collateral contracts (cash / securities), insurance and hedging options.
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Finance advisor example responsibilities.

  • Manage all budget and forecast submissions into Hyperion.
  • Manage $3MM private investment portfolio consisting of mid-cap/large-cap equities.
  • Structure and manage investment portfolios using a range of financial instruments, including equity securities and fix income instruments.
  • Manage and strengthen customer relationships through cross-selling and up-selling to maximize retention and income generation by contacting existing and prospective customers.
  • Research eligibility and status of all Medicare and Medicaid patients.
  • Perform portfolio analysis using MorningStar workstation and complete cost basis research project.
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Hedge fund manager vs finance advisor skills

Common hedge fund manager skills
  • Hedge Funds, 21%
  • Derivative, 16%
  • Private Equity, 15%
  • Equities, 9%
  • Swaps, 8%
  • Mutual Funds, 8%
Common finance advisor skills
  • Team Support, 7%
  • Wealth Management, 7%
  • Securities, 6%
  • Strong Computer, 6%
  • Financial Services, 6%
  • Client Facing, 5%

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