Hedge Fund Accountant Responsibilities

Hedge fund is the portfolio of investments made in domestic or international market with the aim of getting a huge return. Through these investments, investors may apply various strategies to gain more money and returns with minimum risk against the initial investment amount. An investor needs to invest the money in a fund for minimum one year and above. It can either be a short-term or a long term investment.

There are a number of people to manage and oversee the functioning of these funds in the most profitable way. A hedge fund accountant is one of the most important professionals among them, who helps the manager to take the decisions relating to a particular investment portfolio. Hedge fund accountant responsibilities include organizing and maintaining the hedge fund accounts of investors and keep a track of the total flow of money through these funds.

Hedge fund accountant is a responsible person who should have an accounts or financial background to understand the intricacies of hedge fund investments and the domestic and international market. This type of accountant does not perform the regular accounting job.

The daily duties of such a professional involves keeping records of all investments, maintaining accounts of the parties, making necessary transactions, developing reports and reporting to the hedge fund manager.

If you wish to become a hedge fund accountant, read on the list of requirements and responsibilities that will impress an employer.

Key Responsibilities of a Hedge Fund Accountant

• Manage and maintain the hedge fund accounts
• Monitor the total amount of money flow in the organization and of the investment portfolios
• Calculate the value of the fund's assets (net asset value and gross asset value) and analyze it according to the market value
• Apply effective strategies and techniques to help increase the fund's value
• Analyze the fund performance and aim to give the maximum return to the client
• Select and determine the best asset that builds a continuous flow of money
• Manage the cash flow and oversee the movement and its frequency
• Minimize an investment portfolio's daily expenses
• Select the best sources to borrow money during negative cash flows
• Research the market values of funds in the domestic and international market
• Review the status of the portfolio each day and keep a record of all accounting and transactions
• Maintain a healthy and good relation with investors, investment managers, and other third parties
• Prepare the monthly closing profit and loss statement of hedge fund account
• Give a status and detailed report to the client/fund investor about the performance of the respective hedge fund account periodically, preferably monthly
• Help the hedge fund manager in making the final investment decisions
• Use statistical software and feed data regularly
• Identify potential risks and take initiatives to reduce risk and enhance efficiency of the fund
• Work in coordination with the financial, risk management, taxation, audit and client servicing departments to process the daily activities
• Assist in the work of taxation and auditing during year end
• Communicate the fund performance status across all levels of the organization
• Prepare financial statements and help to structure the Profit and Loss Statement
• Work in accordance to the regulatory compliance and accounting practices
• Report to the hedge fund manager

Essential Skills

• Knowledge of hedge fund and accounting principles
• Work experience in the hedge fund industry
• Aware of the latest market and industry (domestic and international) news relating to hedge fund
• Aware of the regulatory and accounting principles and practices
• Ability to assess potential risk factors timely and take remedial measures
• Maintain ethical standards while dealing with the funds and clients
• Excellent research skills and ability to use the findings in the right place
• Manage and handle high stressed and risky work environment
• Keen eye to details and good presentation skills
• Ability to think analytically and take quick decisions
• Excellent written and verbal communication skills

Educational Qualification and Experience

A candidate must complete his/her bachelor's degree in finance, accounting, audit, or the related field to qualify for the post of a hedge fund accountant. A master's degree in financial management or accounting will be preferred more.

An experienced candidate has more value in the hedge fund job market. An employer prefers a candidate who brings with him more than two to three years of work experience in the hedge fund industry or in the field of accounting and audit.

Salary Details

Hedge fund market is a growing field and the fund accountants are paid according to the industry standards. The average salary of a hedge fund accountant is $67,000 per year. This salary range is not fixed and varies according to the type of employer and an individual's education, experience and skills.

Work Hours

A hedge fund accountant will need to work full time in an office environment during regular office hours of 45-50 hours. This job includes extreme work load and targets. Thus, he/she may work overtime during evenings and weekends. Some instances of the work include field visits to meet clients and attend hedge fund conferences.

Career Prospect

Job opportunities in this field are in plentiful and lucrative. With the increasing growth of short term and long term funds, the job openings are also increasing. More and more people are investing in funds, and that's giving rise to several investment companies. It is projected that by the end of 2015 the need for accountants will grow by 22%.

Hedge fund accountant responsibilities are different from that of a regular accountant and requires immense knowledge of the hedge fund market and its functioning, along with the knowledge of accounting.