Why Is Hedge Funds Training So Limited?
If the hedge fund industry is always making headlines, has huge profits, and is seen as almost as sexy if not more sexy of a career path then investment banking how come there are not 50 hedge funds training programs available for industry professionals or those that want to work in this industry? There are many answers to that question and we list them out below: * Specialized Knowledge: Another reason why there are not more alternative investment training options available is that knowledge within this space is worth real money in the workplace.
Why start a small training company trying to make $100k if you could get hired somewhere and make $100k plus a possible bonus of $200k? Most people with experience and knowledge spend their time applying that knowledge to work in the field and not training for financially motivated reasons.
* Maturity: The HF industry is really only 30-40 years old in the United States and only became popular over the last 25 years.
That may sound like a long time but it is not if you compare that length of time with the stock market or many other industries such as real estate, the auto industry, or fast moving consumer goods.
This means that training options within the field are still being developed so as of today there are only a few well known programs such as the CHP.
This may change in the future but do to the following reason, cost, it may not.
* Cost:The cost of developing a certification or training program is high, often over $400,000.
It is actually less expensive in many cases to start a fund than it is certain types of training programs or designations.
As the industry expands internationally however that could change in the future, but it is yet to be seen whether large countries such as the BRIC set of Russia, China, Brazil, and India really embrace investing in and running HFs over the long-term.
Why start a small training company trying to make $100k if you could get hired somewhere and make $100k plus a possible bonus of $200k? Most people with experience and knowledge spend their time applying that knowledge to work in the field and not training for financially motivated reasons.
* Maturity: The HF industry is really only 30-40 years old in the United States and only became popular over the last 25 years.
That may sound like a long time but it is not if you compare that length of time with the stock market or many other industries such as real estate, the auto industry, or fast moving consumer goods.
This means that training options within the field are still being developed so as of today there are only a few well known programs such as the CHP.
This may change in the future but do to the following reason, cost, it may not.
* Cost:The cost of developing a certification or training program is high, often over $400,000.
It is actually less expensive in many cases to start a fund than it is certain types of training programs or designations.
As the industry expands internationally however that could change in the future, but it is yet to be seen whether large countries such as the BRIC set of Russia, China, Brazil, and India really embrace investing in and running HFs over the long-term.
