Question: Below are the courses I came across recently, that made me stop and think...Is it possible to learn about investment banking in 6 weeks? Obviously, these are courses in India, and out there the banking/trading industry may be entirely different from ours in the UK.
So what are the relevant procedures/processes to follow, in order to get involved in hedge funds? Is there a short course/degree course to undergo for this? What are the qualifications needed (besides an MBA) that are industry recognised?
I am told that intuition is the greatest asset of a hedge fund Manager? How true is this?
I am often asked by people how they become hedge fund managers. I will go through the quick route here:
You will want qualifications either to be self-employed or to work for someone.
Let's assume it is to be self-employed. The quick run through is this:
1. The regulatory body will want to see you are qualified; either by track record of managing capital, working within a regulated company or passing relevent exams eg the Investment Management Certificate and Regulatory Exams. The regulator eg FCA (UK) update their rules so it is best to check with them. When I qualified you had to take these exams. Nowadays it is your CV, experience, expertise which is why with my 30 day course and 12 week course I add a lot of information which would show qualification.
2. You would need to create an asset management company, gain FCA authorisation, then a fund structure, eg LP-GP or Sicav/SIF. We have the latter out of Luxembourg now, but started with LP-GP in Cayman.
3. For step 2 you would need good lawyers. For Lux, use ours: Allen and Overy. And for Cayman we used Walkers. For UK asset management company we used Simmons and Simmons (best in the industry for hedge fund set up). You will need a custodian bank (we use Edmund de Rotshchild) administrator and Prime Broker (we used to use Bear Stearns - pre-credit crunch) and auditor (we used to use PwC but now use Ernst and Young.
4. Then you need cap-intro ie capital introduction, a compliance and anti-money laundering officer and CEO.
So now you are probably thinking I want to be an employee not set up my own company. I understand. Now you can see why it took me so many years.
As an employee probably the most thorough course is the CFA -recognised globally. But is broader than just trading. My course, focused on the trading industry is probably the best value!