Licensing

• The SEC does not require hedge fund managers to have a General Securities Representative or Series 7 license. Most states have securities laws called Blue Sky Laws, which require anyone giving investment advice to clients to have a Series 65 or Uniform Registered Investment Advisor license. Anyone who has more than 15 clients or has more than $25 million under management must register with the SEC as a federally registered investment adviser. If the hedge fund buys and sells commodities, the manager will need to have a National Commodity Futures or Series 3 license.
  
  

Education

• Individuals are not required to have a college degree to work as a hedge fund manager, but hedge fund companies will typically require potential managers to have at least an undergraduate degree in a finance-related field. Large companies might also require an individual to have a graduate or post-graduate degree to qualify to become a hedge fund manager. The securities industry is complicated and has many laws and regulations. Hedge funds are a multibillion dollar industry. Any hedge fund company is going to want to ensure that its potential hedge fund managers possess an adequate amount of securities industry knowledge.
  
  

Experience

• The minimum for investors to buy into a hedge fund is $2.5 million, as of 2011. Although the industry has no consensus as to how much working experience a person needs to become a hedge fund manager, with that large of a buy-in, some experience clearly is needed. Acceptable working experience in the industry should be at least three to five years. During this time, individuals must demonstrate a proven record of accomplishment in the hedge fund industry. When investors are putting up millions of dollars, they want to know their hedge fund manager has the knowledge, experience and tools to successfully manage their money.
  
  

Considerations

• Like other individuals in the securities industry, hedge fund managers work long hours that include nights and weekends. Hedge fund managers need to have the ability to stay abreast of the latest securities and economic news because that news can affect the value of the fund they manage. Those considering a career in hedge fund management should also consider obtaining experience in financial sales because that is also a large part of a hedge fund manager's career.