Scott Tominaga – Popular Misconceptions About Working For a Hedge-fund
There are many industries and careers which not many people know too many details about and as a result they often create misconceptions about those who work within them. One such job position that we are going to talk about today which most certainly has a great many misconceptions about it is working for a hedge-fund. Owing to some successful people like Chris rakes who earned somewhere close to $900 million in a decade for Brevan Howard, many believe that this is par for the course. To smash them myths and find out the truth we spoke to Scott Tominaga, an experienced hedge fund manager, who wants to clear things up.
The most popular misconception about those people who work for hedge-funds are that they are all millionaires, which simply isn’t true. Can people working in hedge-funds become millionaires in their position? They absolutely can, does this happen to everyone that works in a hedge-fund? Absolutely not. In fact the average salary for people working in this position is between $90 -120k per year, far from millionaire salaries.
Something which is often leveled at people who work in financial services including hedge-funds is that they do not need to work very hard. This however could not be further from the truth and many people working in hedge-funds are putting in very long hours and they are required to perform a huge range of tasks. Most hedge-funds are very small companies with few employees which means that the workers need to put in extra hard shifts in order for them to make money. There are also limited openings in this industry which means that there is lots of competition for places, those with a position must work hard to keep it.
They Are All The Same
Another common misconception about this industry is that all hedge-funds are the same, they are far from the same in fact. Each hedge-fund will focus on a different kind of portfolio based on the knowledge which they have within the business, each will approach the raising of money and investments in a different way and each uses that investment in a number of different ways in which to make money. Even if you have a job in a hedge-fund now, if you leave it for another one it will take you a while to get up to speed.
Arrogant and Short Tempered
Another stigma which is attached to those working in hedge-funds are that they are all short tempered and arrogant men and women who’s only love is money. In truth if you were to act like this in the majority of hedge-funds that I know, you would be shown the door before you even took your coat off. People working in these funds are generally respectable and intelligent people, they are not like a stock broker from the 80s.