Certification or Licensing
As they climb the career ladder, many hedge fund managers earn professional certifications, which allow them to keep their knowledge up to date—and learn new skills. Some of the most popular certifications in the hedge fund industry are discussed in the following paragraphs.
The chartered financial analyst program, which is administered by the CFA Institute, has three levels of examinations and measures the candidate’s ability to apply the fundamental knowledge of investment principles at the professional level. This is also a useful advanced course, primarily for research analysts and similar positions. See https://www.cfainstitute.org/programs/cfa-program.
For junior trading positions, hedge funds will typically immediately sponsor an employee for the Series 7 and 63 exams. The Financial Industry Regulatory Authority Series 7 General Securities Representative exam is the main qualification for stockbrokers, and is normally taken in conjunction with the Series 63 Uniform State Law Exam. See https://www.finra.org. Hedge fund managers may also need to take and pass the Series 65 exam, called the Uniform Investment Adviser Law Examination, which covers portfolio management strategies, ethics, laws, and fiduciary responsibilities. See https://www.nasaa.org/exams/exam-study-guides.
The chartered alternate investment analyst designation is administered by the Chartered Alternate Investment Analyst Association. It’s geared those who manage, analyze, distribute, or regulate alternative investments. See https://caia.org/programs/the-caia-charter.
The chartered investment counselor designation, which is offered by the Investment Adviser Association, tests applicants’ proficiency in investment counseling and portfolio management. See https://www.investmentadviser.org/compliance-operations/resource-library.
Other certifications are provided by the
- Association for Financial Professionals (certified treasury professional, certified corporate financial planning and analysis professional)
- Certified Financial Planner Board of Standards (certified financial planner)
- Hedge Fund Group (certified hedge fund professional)
- Investments & Wealth Institute (certified investment management analyst)
- CMT Association (chartered market technician)
Some hedge fund managers are licensed as certified public accountants. The Uniform CPA Examination, which is administered by the Association of International Certified Professional Accountants, is used by all states.