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Key Responsibilities and Required Skills for a Hedge Fund Accountant

💰 $85,000 - $150,000

AccountingFinanceAsset Management

🎯 Role Definition

As a Hedge Fund Accountant, you will be a critical pillar of our middle and back-office operations, responsible for upholding the financial integrity and accuracy of our investment portfolios. This role is not just about numbers; it's about providing the timely, precise financial data that underpins our investment strategies and ensures transparency for our investors. You will serve as a key liaison between portfolio managers, prime brokers, administrators, and auditors, operating at the very heart of the fund's financial nervous system. This role requires a meticulous and driven professional who thrives in a challenging environment and is eager to take ownership of complex accounting processes.

📈 Career Progression

Typical Career Path

Entry Point From:

  • Public Accounting (Financial Services Audit or Tax)
  • Fund Administration
  • Financial Operations or Product Control Analyst

Advancement To:

  • Senior Hedge Fund Accountant
  • Fund Accounting Manager / Assistant Controller
  • Fund Controller / Director of Finance

Lateral Moves:

  • Valuation & Pricing Analyst
  • Product Control
  • Treasury or Operations Management

Core Responsibilities

Primary Functions

  • Execute the full-cycle NAV (Net Asset Value) calculation process on a daily or monthly basis, ensuring accuracy and timeliness across various fund structures and complex investment strategies.
  • Prepare and analyze daily and month-end Profit and Loss (P&L) reports, attributing performance to specific strategies, asset classes, and individual securities.
  • Perform comprehensive reconciliations of cash balances, security positions, and trade activity between our internal records and those of prime brokers, custodians, and fund administrators.
  • Investigate and resolve any reconciliation breaks or discrepancies in a timely manner, coordinating with internal teams and external partners to ensure swift resolution.
  • Process and accurately account for all corporate actions, including stock splits, dividends, mergers, and spin-offs, ensuring their correct reflection in the portfolio's valuation.
  • Calculate and accrue all fund-level expenses, including management fees, performance/incentive fees, and other operational costs, in accordance with fund documentation.
  • Prepare and review detailed investor capital activity, including subscriptions and redemptions, and assist in the calculation of investor-level allocations.
  • Manage the accounting for complex financial instruments, including derivatives (swaps, options, futures), private equity, credit instruments, and other illiquid assets.
  • Liaise directly with the fund's external administrator to review and finalize the official NAV and reporting packages, acting as the primary point of contact for accounting inquiries.
  • Prepare comprehensive work papers, financial schedules, and supporting documentation to assist with the year-end audit and tax preparation processes.
  • Serve as a key contact for external auditors, providing requested documentation and explaining complex accounting treatments and valuation methodologies.
  • Assist in the preparation and review of the fund's semi-annual and annual audited financial statements, including footnotes, in compliance with US GAAP or IFRS.
  • Monitor and account for collateral and margin movements with counterparties, ensuring balances are accurately reflected and reconciled.
  • Review and verify security pricing and valuation from various third-party sources, applying the fund's valuation policy consistently.
  • Participate in the review of fund legal documents, such as Private Placement Memorandums (PPMs), to ensure accounting procedures are aligned with stated terms.
  • Assist in the onboarding of new funds, strategies, or prime brokerage relationships by setting up the necessary accounting workflows and reporting templates.

Secondary Functions

  • Drive process improvement initiatives by identifying inefficiencies in the accounting and reporting cycle and proposing automated or streamlined solutions.
  • Collaborate with the technology team to test and implement new portfolio accounting software, system upgrades, or reporting tools.
  • Support ad-hoc data requests and exploratory financial analysis for portfolio managers, senior management, and the investor relations team.
  • Contribute to the organization's data governance strategy by ensuring the accuracy and integrity of financial data used across departments.
  • Collaborate with business units to translate new reporting needs or regulatory requirements into actionable accounting and system requirements.
  • Participate in sprint planning and agile ceremonies for technology or process improvement projects impacting the finance and accounting functions.
  • Prepare specialized reports for regulatory filings or internal risk management committees.
  • Mentor and provide guidance to junior accountants or interns, fostering a collaborative and knowledgeable team environment.

Required Skills & Competencies

Hard Skills (Technical)

  • Portfolio Accounting Software: Demonstrable experience with major fund accounting platforms such as Advent Geneva, VPM, SS&C GlobeOp, or Eagle STAR.
  • Advanced Microsoft Excel: Mastery of Excel, including complex formulas, pivot tables, Power Query, and data modeling for financial analysis and reconciliation.
  • Knowledge of Financial Products: Deep understanding of the accounting treatment for equities, fixed income, derivatives (options, futures, swaps), and other alternative investments.
  • Accounting Principles: Strong command of U.S. GAAP, specifically ASC 820 (Fair Value Measurement) and investment company accounting (ASC 946). IFRS knowledge is a plus.
  • NAV Calculation: Proven expertise in the end-to-end NAV calculation and validation process for various fund structures (e.g., master-feeder).
  • SQL/Database Querying: Basic to intermediate ability to write SQL queries for data extraction and analysis from financial databases is highly desirable.
  • P&L Attribution: Skill in breaking down and explaining portfolio profit and loss by strategy, sector, or security.

Soft Skills

  • Extreme Attention to Detail: An unwavering commitment to accuracy and precision, with the ability to identify and rectify the smallest discrepancies.
  • Analytical & Problem-Solving Mindset: The capacity to dissect complex problems, investigate root causes of issues, and implement effective solutions.
  • Time Management & Prioritization: Ability to manage multiple competing deadlines in a high-pressure, fast-paced trading environment without sacrificing quality.
  • Effective Communication: Excellent verbal and written communication skills to clearly articulate complex financial information to both technical and non-technical stakeholders.
  • Ownership & Accountability: A proactive and responsible approach, taking full ownership of tasks and deliverables from start to finish.

Education & Experience

Educational Background

Minimum Education:

  • Bachelor's Degree from an accredited university.

Preferred Education:

  • Master's Degree in Accounting or Finance.
  • Professional certification such as CPA (Certified Public Accountant) or CFA (Chartered Financial Analyst) is strongly preferred.

Relevant Fields of Study:

  • Accounting
  • Finance
  • Economics

Experience Requirements

Typical Experience Range: 2-7 years of relevant accounting experience.

Preferred: Direct experience working at a hedge fund, private equity firm, fund administrator, or in the financial services audit practice of a Big 4 or other top public accounting firm.

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