FAQs

Industry questions
What is a hedge fund?

The term hedge fund is used to describe funds that are not conventional investment funds – that is, they use strategies other than investing long. Traditional shares and bonds are privately organised investment vehicles, in pursuit of ‘absolute return’ with the ability to profit in rising and falling markets. Hedge funds distinguish themselves from traditional investments by virtue of a number of investment tools that are unavailable to traditional investors such as leverage, short-selling and derivatives. Through the use of such tools, they have the ability to both improve the returns and reduce the risk of an investment portfolio.

To find out more, visit our What are Alternative Investments page.

What are the different types of hedge funds?

Hedge Funds can be divided into two main categories – single manager and fund of hedge funds (FoHFs).

A single manager hedge fund usually focuses on trading financial instruments for a specific strategy or sector to target maximum opportunities for growth within a designated area. FoHFs, on the other hand, invest in a number of underlying single manager hedge funds and construct portfolios based upon those selections. Therefore FoHFs are more diversified than a single manager hedge fund and as a result, are the preferred vehicle for pension funds and other institutions.

Different hedge fund strategies include:

  • Relative Value – which looks to exploit relative pricing discrepancies between related financial instruments (e.g. convertible arbitrage or fixed income arbitrage).
  • Event Driven – which engages in the purchase or sale of securities of companies which are undergoing substantial changes (e.g. M&A or restructuring).
  • Global Macro – takes an opportunistic approach that exploits shifts in macro economic trends.
  • Equity Hedge – offsets long and short positions in equities (may have a net long or short exposure).
  • Managed Futures (Commodity Trading Advisors) – which trade in the world-wide futures markets, ranging from global financial instruments to tangible assets such as coffee, crude oil and gold.

To find out more, visit our What are Alternative Investments page.

What does the credit crunch mean for hedge funds? How have they been affected?

The fallout of the fastest credit deterioration in the last five years has had worldwide implications across the whole of the asset management industry. Hedge funds were also widely affected, with the press centring on hedge fund casualties and write downs. However, there is another side to the credit crunch story.

Some hedge funds made huge gains through shorting sub-prime debt. This underlines the ability of hedge funds to perform in a bear as well as a bull market.

How is Man different to other hedge fund providers?

Man is one of the world’s largest hedge fund providers, employing more than 1,700 people. We have worldwide presence and offer opportunities in our offices in London, Switzerland, US, Australia, Singapore, Japan and Dubai.

Amongst our recent awards, we were voted European asset management firm of the decade 2006 by Financial news, best provider of managed futures 2006 by Euromoney, and hedge fund of the year 2005 by Funds Europe awards.

We have a culture of accountability reflected in our robust corporate governance and corporate responsibility. We have grown exponentially over the years and support the development of our employees through training and education. Socially we have many events organised at our various offices, which employees are encouraged to take part in.

Working at Man questions
What is the day-to-day life of a graduate at a hedge fund?

New graduates generally spend between 12 and 18 months moving between different departments to obtain a thorough understanding of Man and the operations of different business areas.

Daily tasks obviously depend on the individual role, and graduates are encouraged to be active team members and participate as much as possible in ongoing tasks. This could typically involve anything from writing internal research papers or analyzing investment products to monitoring risk exposures, writing programming code or working with senior management on all kinds of innovative projects. Graduates participate in cutting edge projects and are expected to add value to the business from day one.

To find out more, visit our Graduate Programmes section.

How do you get into the job? Is it best to do an internship, or to work for an investment bank first?

Our graduate schemes are aimed at individuals with little or no work experience, so you don’t need to work for an investment bank first. More important is your ability to demonstrate a genuine passion for financial services, plus a clear idea why you want to work in hedge funds.

An internship is one way to do this, and is a valuable experience in itself. However, there are many other ways to demonstrate a genuine passion for a career in financial services. Having a virtual (or real) trading account, being a member of a finance club or pursuing postgraduate qualifications are alternative ways to impress.

In general many applicants have fantastic academic records and a plethora of extra curriculum activities. So a successful application hinges on having that extra something that makes you stand out from the crowd.

Do you offer a competitive compensation package?

Yes. Our total compensation package is highly competitive within the industry. You will also be eligible for an annual bonus. (All bonus payments are discretionary and based on individual and company performance.)

What is your dress code?

We have a business-casual dress code. Professional business attire must be worn when meeting clients, unless otherwise specified.

Application and selection questions
How many opportunities do you have?

We are currently looking for at least 20 graduates for 2009, and we also have at least 15 opportunities for postgraduate students.

When will you be visiting my campus?

Please visit our Events page to find out when we will be at your university campus.

If you do not come to my campus will my application still be considered?

Yes. We have certain target universities at which we actively market ourselves, but all applications are considered equally. You may apply via our online application form.

How can I apply?

Once you have researched the opportunities available please visit the Applying section.

When can I apply for an internship/full-time position?

Please refer to the Applying section for specific details on regional and divisional application deadline dates.

What offices do you actively recruit for?

We are actively recruiting graduates and postgraduates into our London, Chicago and Swiss offices.

Can I apply to more than one area?

If possible, we ask you to decide on your preferred progamme by investigating the type of job you would like to do before you apply. To assist with your career research, we recommend you read carefully the overviews of the business units and the programme descriptions.

What are the basic skill sets and/or qualifications you look for?

Across all programmes, we are seeking self-managed, intuitive and pro-active individuals who can demonstrate team skills and a strong desire to learn. You will be expected to possess a consistent and impressive academic background, combined with solid quantitative skills.

You’ll also bring a proven interest in the financial sector, demonstrated either by direct work experience or a background of study, is highly regarded. Each programme has specific entry requirements, which you should check before applying.

Are languages essential?

Languages are desirable but not essential. German is desirable for working at our Swiss office.

Do you only hire candidates with finance degrees?

In general we are looking for candidates with a degree in a numerate or business-related discipline. However, we do encourage outstanding candidates from all disciplines to apply, providing they have a keen interest in business.

What is the recruitment procedure?

Candidates are selected based on their academic record, their level of interest in Man, and their work experience. All applicants must submit a CV and covering letter.

The interview process differs across business units and regions, but typically commences with a first round telephone interview, followed by a face-to-face interview in one of our offices, and then a final round selection day that could include further interviews, ability tests and case study exercises.

Our interviews are competency based. This means the interviews attempt to highlight the candidate's aptitude for the positions the firm is seeking to fill. Candidates will be asked to demonstrate how their experiences demonstrate these competencies.

What is a typical application process and timeline? When should I expect to know the status of my application?

The application process differs slightly by region. In the UK the process commences in September. Interviews are traditionally scheduled over the subsequent three to four months. The internship process commences in early January, with interviews traditionally scheduled over the following two to three months. Applications for our postgraduate-level positions are open throughout the year.

In Switzerland, the application process commences around six months prior to the start date of the trainee programme

How should applicants prepare for interviews? What should they be reading?

Do your research! Why do you want to work for a hedge fund? What do you understand about the hedge fund business? It’s all about preparation. Ensure you keep up-to-date on what is going on in the markets. Think about what key factors have shaped the economy over the past 12 months. And expect technical questions!

Useful readings on general hedge fund news are “Hedge Fund Manager Week” and publications such as Absolute Return (which focuses on U.S. single-manager hedge funds), Investhedge (which focuses on FoHFs), Eurohedge and Asiahedge (which focus on Europe and Asia respectively).

You can also sign up for free daily online hedge fund news with Albourne village and Hedgeweek.

When is the start date?

The start dates differ depending on the programme and region. Our graduate programmes in the UK typically commence in September or October.  We have various start dates for our MCS graduate programme, and our postgraduate opportunities are available throughout the year.

Over what period do the internships run?

The dates and lengths of our internships differ across divisions. In London, most Internships run for eight to ten weeks between June and September, while in Switzerland, internships may last up to six months and take place at any time of the year. Our internships for PhD level applicants may also last up to six months and take place at any time of the year.

Please refer to the Internships section for specific dates and lengths.

What financial assistance for study do you offer?

We have an Educational Assistance Programme for relevant study, e.g. CFA, CAIA, IMC Corp Finance Qualification, plus study leave

Will you pay my interview expenses?

Yes, on provision of receipts we will refund standard class travel.

Will you assist in obtaining my visa?

This is assessed on a case-by-case basis. Please refer to your recruitment contact for further information.

Oxford-Man questions
What is the Oxford-Man Institute?

Man Investments and the University of Oxford have established a new interdisciplinary centre at Oxford for the academic study of quantitative finance, with a particular focus on alternative investments. The Institute is independent of Man and is run by Oxford University academics. Oxford University intends that the Institute will become the world’s leading interdisciplinary Institute in quantitative finance.

The Institute is truly interdisciplinary, drawing academics and researchers from various faculties from across the University, and has the support of the Vice Chancellor and the heads of the divisions involved.

It is also stand-alone, which means that it is not associated with any department, and it houses the co-located Man Research Laboratory. The Institute is a unique and pioneering collaboration between one of the world’s most respected universities and one of the world’s leading financial institutions in alternative investments. The concept is a first in the world of finance.

Why is Man involved?

We have a long and deep relationship with Oxford University. We have been in continuous operation in the City for more than two centuries. Many Oxford graduates have worked for and continue to work for the company and Oxford is one of many universities worldwide on which we focus our recruiting efforts. Therefore expanding our relationship with Oxford is a logical next step in the development of our relationship.

Further, we believe that any activity that Man can pursue within the area of alternative investments to encourage the creation of cutting edge research, the expansion of excellent teaching and research, and the development of leading academics in this field ultimately will prove useful to ourselves and our industry.

There is a real long-term benefit to be gained from being the first firm to create an institute of this kind housing both academic and commercial researches under the same roof and in partnership with a world-renowned university. Courses at the Institute are tailored specifically to enable allow Man employees to keep abreast of recent advances in quantitative finance.. In addition, we hope that the Institute will provide us with greater access to top quantitative researchers from around the world, and to new and improved alternative investment and quantitative trading strategies. Furthermore, we believe that heightened awareness of Man Investments among the world’s best scholars will result in increased recruitment potential.

And how does Oxford University benefit?

We want the Institute to come up with big ideas in quantitative finance, and not just undertake incremental research. To this end we have guaranteed Oxford’s academic freedom, independence and the right to publish because successful institutions have to have this principle enshrined in their foundation. These guarantees mean that the Institute has the right to pursue curiosity-driven research in quantitative finance. Only in this way will the Institute be able to generate the next big ideas.

There are three main benefits for Oxford University:

Funding: Man’s initial commitment to the centre is for £13.75 million, which includes a permanent endowment for the Man Professor of Quantitative Finance. This represents significant funding for Oxford, their third highest donation in any field in recent history and an order of magnitude increase in the funding of quantitative finance research.

Premises: We are providing a physical home for interdisciplinary research into Quantitative Finance.

Access to Man’s practitioners: The co-location of the Man Research Laboratory within the Institute, provides access for those undertaking research there to practitioners at Man.