Hedge Fund Risk Manager
About the role
We are seeking an experienced Risk Manager to join our investment team and oversee risk across a diversified portfolio of external hedge fund managers. This role focuses on portfolio-level risk aggregation, manager-level due diligence, and forward-looking risk analytics to support investment decision-making. The ideal candidate will act as a strategic partner to the investment team, providing actionable insights on portfolio construction, diversification, and downside risk management.
Essential Duties And Responsibilities
- Monitor and aggregate risk exposures across underlying hedge funds by strategy, asset class, and geography
- Assess market, liquidity, concentration, leverage, and tail risks
- Ensure alignment with risk budgets and investment objectives
- Conduct risk-focused due diligence on hedge fund managers
- Evaluate strategy risk, leverage, derivatives use, and drawdowns
- Challenge portfolio construction and hedging assumptions
- Maintain VaR, stress testing, and scenario analysis models
- Build dashboards and deliver risk reporting to senior stakeholders
- Provide actionable insights to investment decision-makers
- Liquidity & Capital Planning
- Assess liquidity terms including lockups and gates
- Monitor portfolio liquidity vs investor redemption terms
- Run stress scenarios for market dislocation events
- Portfolio Construction
- Support advice on allocation sizing and diversification
- Identify hidden correlations and portfolio risks
- Support investment decisions with forward-looking risk views
- Ongoing Monitoring & Surveillance
- Track risk metrics regularly
- Identify early warning signals such as style drift or anomalies
- Participate in ongoing manager monitoring
Qualifications
- Necessary Experience and Education: 3 - 5 years in hedge fund risk management, fund of funds, asset management, risk management or related roles. Bachelor's degree in Finance, Economics, Mathematics, or related field. CFA or FRM preferred.
- Necessary Technical Skills: Strong understanding of hedge fund strategies, Expertise in VaR, stress testing, and risk modeling, Prior experience with MSCI RiskMetrics, Proficiency in Excel, Power BI, or SQL
- Necessary Core Competencies: Strong analytical and quantitative skills, Excellent communication and stakeholder management, High attention to detail
Benefits
Salary range is a good faith estimate of base pay. Northern Trust provides a comprehensive benefits package including retirement benefits (401k and pension), health and welfare benefits (medical, dental, vision, spending accounts and disability), paid time off, parental and caregiver leave, life & accident insurance, and other voluntary and well-being benefits. Northern Trust also provides a discretionary bonus program that may include an equity component.
Working With Us
As a Northern Trust partner, greater achievements await. You will be part of a flexible and collaborative work culture in an organization where financial strength and stability is an asset that emboldens us to explore new ideas. Movement within the organization is encouraged, senior leaders are accessible, and you can take pride in working for a company committed to assisting the communities we serve!