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The differences between portfolio managers and hedge fund managers can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 6-8 years to become a portfolio manager, becoming a hedge fund manager takes usually requires 8-10 years. Additionally, a hedge fund manager has an average salary of $135,399, which is higher than the $114,671 average annual salary of a portfolio manager.
The top three skills for a portfolio manager include portfolio management, customer service and risk management. The most important skills for a hedge fund manager are hedge funds, derivative, and private equity.
| Portfolio Manager | Hedge Fund Manager | |
| Yearly salary | $114,671 | $135,399 |
| Hourly rate | $55.13 | $65.10 |
| Growth rate | 17% | 10% |
| Number of jobs | 43,192 | 2,225 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 71% | Bachelor's Degree, 74% |
| Average age | 46 | 47 |
| Years of experience | 8 | 10 |
A portfolio manager is responsible for managing the clients' investment portfolios to advise them of the best investment plans to achieve their financial goals and objectives. Portfolio managers determine the most suitable options by evaluating the clients' credit score and risk potential and the client's financial background. A portfolio manager should be highly knowledgeable and updated with the recent financial industry changes to decide on investment plans with maximum returns.
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.
Portfolio managers and hedge fund managers have different pay scales, as shown below.
| Portfolio Manager | Hedge Fund Manager | |
| Average salary | $114,671 | $135,399 |
| Salary range | Between $66,000 And $198,000 | Between $70,000 And $261,000 |
| Highest paying City | Stamford, CT | Rochester, NY |
| Highest paying state | Connecticut | New York |
| Best paying company | The Citadel | Kforce |
| Best paying industry | Finance | Insurance |
There are a few differences between a portfolio manager and a hedge fund manager in terms of educational background:
| Portfolio Manager | Hedge Fund Manager | |
| Most common degree | Bachelor's Degree, 71% | Bachelor's Degree, 74% |
| Most common major | Business | Finance |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between portfolio managers' and hedge fund managers' demographics:
| Portfolio Manager | Hedge Fund Manager | |
| Average age | 46 | 47 |
| Gender ratio | Male, 66.6% Female, 33.4% | Male, 74.2% Female, 25.8% |
| Race ratio | Black or African American, 7.5% Unknown, 4.1% Hispanic or Latino, 14.4% Asian, 10.1% White, 63.6% American Indian and Alaska Native, 0.3% | 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% |
| LGBT Percentage | 11% | 10% |