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The differences between hedge fund managers and traders can be seen in a few details. Each job has different responsibilities and duties. Additionally, a hedge fund manager has an average salary of $135,399, which is higher than the $90,179 average annual salary of a trader.
The top three skills for a hedge fund manager include hedge funds, derivative and private equity. The most important skills for a trader are portfolio, financial markets, and derivative.
| Hedge Fund Manager | Trader | |
| Yearly salary | $135,399 | $90,179 |
| Hourly rate | $65.10 | $43.36 |
| Growth rate | 10% | 10% |
| Number of jobs | 2,225 | 17,351 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 74% | Bachelor's Degree, 78% |
| Average age | 47 | 43 |
| Years of experience | 10 | - |
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.
A trader is responsible for buying and selling financial instruments for a firm or an individual, monitoring stock movements, and analyzing price fluctuations. Traders focus on short-term and long-term trades, depending on their customers' demands and best interests. In some cases, traders also act as financial advisors to their clients, providing financial management support, and handling their account investments. A trader must have excellent knowledge of the financial industry and must be highly-analytical, dealing with consistent changes in the stock market and maintain smart decisions to achieve their clients' financial goals.
Hedge fund managers and traders have different pay scales, as shown below.
| Hedge Fund Manager | Trader | |
| Average salary | $135,399 | $90,179 |
| Salary range | Between $70,000 And $261,000 | Between $56,000 And $144,000 |
| Highest paying City | Rochester, NY | White Plains, NY |
| Highest paying state | New York | New York |
| Best paying company | Kforce | The Citadel |
| Best paying industry | Insurance | Finance |
There are a few differences between a hedge fund manager and a trader in terms of educational background:
| Hedge Fund Manager | Trader | |
| Most common degree | Bachelor's Degree, 74% | Bachelor's Degree, 78% |
| Most common major | Finance | Finance |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between hedge fund managers' and traders' demographics:
| Hedge Fund Manager | Trader | |
| Average age | 47 | 43 |
| Gender ratio | Male, 74.2% Female, 25.8% | Male, 82.1% Female, 17.9% |
| Race ratio | Black 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, 5.5% Unknown, 4.1% Hispanic or Latino, 11.5% Asian, 12.4% White, 66.2% American Indian and Alaska Native, 0.2% |
| LGBT Percentage | 10% | 6% |