PLANS & PRICING
Hedge fund managers need to know the ins and outs of the products they trade or invest in, and the math, finance and legal issues involved. I’m sure others will have a much more in-depth analysis than my post.
One more skill, though, is that of a salesman: You have to be able to convince someone that your strategy is better than everyone else’s. If you have a great record, sell that. If you have great technology, sell that. Sell safety, sell a lottery ticket, sell an insurance policy, whatever it is, you have to sell the company to get more assets.
You have to be able to tell your clients that you lost their money and they should stay with you. No fund manager is invincible — every one will have losses at some point. The best managers work through it, keep their capital and improve afterwards.
You have to have good management skills and lead people. You don’t work by yourself. You have engineers, clerks, traders, vendors, brokers and so many more people you have to work with and, in many cases, please. Your division of equity and profits, your ability to manage a cohesive team in the face of strong-willed and strong-ego’d individuals are paramount to having people work together effectively.