Torchora
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hedge manager

title: "Hedge Manager: Strategic Financial Risk and Portfolio Optimization"
salary: "$150,000 - $250,000+"
categories: [Finance, Asset Management, Risk Management, Treasury, Trading]
description: A comprehensive overview of the key responsibilities, required technical skills and professional background for the role of a "Hedge Manager: Strategic Financial Risk and Portfolio Optimization".

🎯 Role Definition

As a Hedge Manager, you will serve as the strategic linchpin for our financial risk management framework. This critical role involves designing, implementing, and overseeing comprehensive hedging programs to neutralize the impact of adverse movements in foreign exchange (FX) rates, interest rates, and commodity prices. You will be responsible for the entire lifecycle of a hedge, from initial exposure analysis and strategy formulation to trade execution, performance monitoring, and reporting. The ideal candidate is a quantitative thinker with deep market knowledge, who thrives in a fast-paced environment and can translate complex financial data into actionable, value-protective strategies. You will be a key advisor to senior leadership, providing expert insights that safeguard the firm's balance sheet and financial performance.

📈 Career Progression

Typical Career Path

Entry Point From:

  • Senior Treasury Analyst / Treasury Manager
  • Quantitative Risk Analyst
  • Portfolio Manager or Analyst
  • Derivatives Trader

Advancement To:

  • Director of Hedging / Head of Hedging Strategy
  • Head of Treasury or Assistant Treasurer
  • Chief Risk Officer (CRO)
  • Senior Portfolio Manager / Head of Asset Allocation

Lateral Moves:

  • Senior Quantitative Strategist
  • Head of FX or Rates Strategy
    g- Derivatives Structurer

Core Responsibilities

Primary Functions

  • Develop, implement, and continuously refine comprehensive hedging strategies to mitigate financial risks, including foreign exchange (FX), interest rate, and commodity price volatility.
  • Execute and manage a complex portfolio of derivative instruments, including forwards, futures, options, and swaps, ensuring optimal pricing and best-in-class trade execution.
  • Conduct in-depth quantitative analysis, scenario modeling, and back-testing to assess the effectiveness of current hedging programs and identify potential areas for optimization.
  • Monitor and analyze global macroeconomic trends, geopolitical events, and central bank policies to anticipate market shifts and proactively adjust hedging positions.
  • Manage the firm's cash flow, balance sheet, and net investment hedging programs, ensuring they align with corporate finance objectives and risk appetite.
  • Prepare and present detailed performance reports, market updates, and strategic recommendations to senior management, the board, and risk committees.
  • Develop and maintain sophisticated financial models to quantify risk exposures, measure hedge effectiveness, and calculate potential profit and loss scenarios.
  • Oversee all trade-related activities, from pre-trade analysis and compliance checks to post-trade settlement and reconciliation.
  • Manage relationships with external banking partners and trading counterparties to ensure access to competitive pricing, market liquidity, and expert insights.
  • Provide expert guidance on the application of hedge accounting principles (ASC 815 / IFRS 9) and prepare necessary documentation to support the designation of hedging relationships.
  • Analyze M&A and other corporate transactions to assess their impact on the firm's risk profile and develop appropriate hedging solutions.
  • Own the firm's hedging policy, ensuring it remains current, effective, and in compliance with all internal and external regulations.
  • Evaluate and implement new hedging instruments, technologies, and analytical tools to enhance the capabilities and efficiency of the risk management function.
  • Lead the calculation and analysis of key risk metrics, such as Value at Risk (VaR), sensitivity analysis, and stress testing, for the hedged portfolio.

Secondary Functions

  • Collaborate closely with Treasury, Accounting, and FP&A teams to ensure accurate reporting, valuation, and accounting treatment of all hedging activities.
  • Partner with business units and corporate development to understand underlying commercial exposures and integrate them into the overall hedging framework.
  • Serve as the subject matter expert on derivatives and financial market risk for internal stakeholders, providing training and education as needed.
  • Support ad-hoc data requests and exploratory analyses related to market risk, portfolio construction, and investment performance.
  • Contribute to the continuous improvement of Treasury processes and controls, particularly those related to trade execution and risk monitoring.
  • Participate in the negotiation of ISDA agreements and other trading-related legal documentation with counterparties.
  • Stay abreast of regulatory changes (e.g., Dodd-Frank, EMIR) and assess their potential impact on the company's hedging operations.

Required Skills & Competencies

Hard Skills (Technical)

  • Advanced Derivatives Knowledge: Deep expertise in the structuring, pricing, and application of financial derivatives, including FX forwards, NDFs, options, and interest rate swaps.
  • Quantitative & Financial Modeling: Proven ability to build and manage complex financial models for risk analysis, scenario testing, and valuation.
  • Market Data Systems: High proficiency with market data terminals such as Bloomberg Terminal and Reuters Eikon.
  • Treasury Management Systems (TMS): Hands-on experience with leading TMS platforms (e.g., Kyriba, FIS Quantum, ION).
  • Data Analysis & Programming: Strong skills in data manipulation and analysis using tools like Excel (VBA), SQL, and statistical programming languages such as Python or R.
  • Hedge Accounting: Thorough understanding of hedge accounting standards, specifically ASC 815 and/or IFRS 9.
  • Risk Metrics: Expertise in calculating and interpreting risk metrics like VaR, duration, convexity, and greeks.
  • Trade Execution Platforms: Familiarity with multi-bank trading platforms like FXall, 360T, or Bloomberg FXGO.

Soft Skills

  • Analytical and Quantitative Mindset: A data-driven approach to problem-solving and decision-making.
  • High-Pressure Decision Making: The ability to make sound, timely decisions in volatile market conditions.
  • Strategic Thinking: Capacity to see the big picture, anticipate future trends, and align hedging strategy with broader business goals.
  • Exceptional Communication: Ability to articulate complex financial concepts and strategies clearly and concisely to both technical and non-technical audiences.
  • Meticulous Attention to Detail: Precision in analysis, trade execution, and reporting is paramount.
  • Collaborative Spirit: A proven team player who can work effectively across different departments and seniority levels.
  • Integrity and Ethical Conduct: Unquestionable personal and professional integrity in all matters.

Education & Experience

Educational Background

Minimum Education:

  • Bachelor's Degree from an accredited university.

Preferred Education:

  • Master’s Degree in Finance, Financial Engineering, Economics, or a related quantitative field (MBA, MFE, MSF).
  • Professional Certifications such as Chartered Financial Analyst (CFA) or Financial Risk Manager (FRM) are highly desirable.

Relevant Fields of Study:

  • Finance
  • Economics
  • Mathematics / Statistics
  • Quantitative Finance

Experience Requirements

Typical Experience Range: 7-12+ years

Preferred: A minimum of 7 years of progressive experience in a corporate treasury, asset management, or hedge fund environment with direct, hands-on responsibility for developing and executing FX, interest rate, or commodity hedging strategies. Experience with hedge accounting and managing a derivatives portfolio is essential.

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