Hedge Fund Cover Letters that GET Interviews

Your cover letter is as important as your resume in many respects and it deserves equal consideration. The cover letter is the first item seen by the manager or partner reviewing your application. A poorly written or overly verbose hedge fund cover letter will not be considered, and your resume will not be reviewed either. Therefore, it is essential that your first paragraph (you may only need one) appeal to the reader.

Before you begin writing, it is crucial that you consider who will be reading your letter, what they are used to seeing, and what they expect to see.

Who is Reading Your Hedge Fund Cover Letter?

Small hedge funds (< $250M in AUM) are unlikely to have a dedicated human resources professional. Initial correspondence should be directed to the CEO, a partner, or managing director. Large firms (> $1B) will likely have an HR department that handles initial inquiries, though hiring decisions will be made by a team of senior partners.

If you are addressing your cover letter to the CEO, it is well worth your time to do a little background research. Maybe you are alumni of the same school? Maybe you had an internship with a firm he worked with for 10 years or you volunteer for an organization for which the CEO is on the board. If you can find some common perspective it will help your letter stand out. Just make sure not to address anything too personal (kids, spouses, politics etc). Our hedge fund lists include information on up to four executives per fund.

What are Hedge Fund Hiring Managers Used to Seeing in Cover Letters?

The cover letters hiring managers see all too often have a few distinguishing characteristics: they are lengthy, lack a call to action, are impersonal, and resemble a form letter. Avoid these hedge fund cover letter mistakes at all costs.

Remember that the goal of your cover letter is to get your resume reviewed and land you an interview. If they aren’t interested enough to finish reading your letter, do you think they will have any interest in your background and qualifications? Brevity is your friend. Avoid any temptation to embellish your letter with large words or complex literary contraptions.

It is also very important that your cover letter attempt to address the specific person in charge of hiring. For some funds you will be able to do your own research and find bios of the key people on the internet or from a business library. Our frequently updated hedge fund lists also supply an easy way to contact 3500+ hedge fund and private equity firms and provide specific contact info for key hiring managers. Whatever your method, there is no surer way of getting your cover letter and resume tossed in the trash than to address it “Dear Sir” or “To Whom it May Concern”.

Make sure your hedge fund cover letter has a clear call to action or take responsibility for that action yourself. Your letter should conclude by thanking the reader for reviewing your qualifications and ask for an interview. Many people, not wanting to be seen as pushy, don’t take the critical step of asking for the initial interview. The entire purpose of your letter and resume are to obtain an interview. You must ask for it. You might say something like this:

“Thank you for reviewing my qualifications. I will call you next week to discuss setting up a time to meet personally.”

Of course, if you take responsibility for initiating the conversation you must follow up as indicated.

What do Hedge Fund Hiring Managers Expect to See?

Hedge fund managers and private equity managers are looking for different qualifications. Hedge funds typically appreciate trading and research backgrounds, while PE firms favor banking experience.

Qualifications aside, both types of firms look for the similar personal traits. They expect academic achievement, a very strong work ethic, and some sort of professional achievement. If you can address all three in a concise manner, you will be a step ahead of your competition. Your hedge fund or private equity cover letter should also mention the firm by name and in a manner that makes it obvious that you are not writing a form letter:

“I would be excited to work for a great firm like Flying Mongoose Capital”- Likely form letter.

“I believe my experience as a Research Analyst with Morgan Stanley’s Global Equity Team would be a valuable asset to Flying Mongoose Capital’s top-ranked international research department.”- Clearly not a form letter.

Most importantly, your letter must tell the reader what position you are applying for. Even if you are unsure if they are hiring at all, determine the position you would most likely be offered and seek it out. For example, let’s take AEA Investors (www.aeainvestors.com), a large private equity firm in CT.

If you are using this guide in conjunction with one of our hedge fund / PE lists, simply click on the website URL. On AEA’s website you will find the link, “Our People”. By investigating some of the names you will find the staff is divided into Managing Directors, Principals, Vice Presidents, and Associates. This is a common hierarchy for PE firms. Find the position that you are most qualified for and make your interest clear in your cover letter.

The VERY Short Hedge Fund Cover Letter

If you have a strong resume and are writing unsolicited letters to hiring managers, you might consider writing a very short “20 second” hedge fund cover letter. Research has shown that most cover letters receive fewer than 20 seconds of review. You might get even less with busy fund managers. This technique requires more attention and effort than longer letters because you need to convey 95% of the information in 30% of the space. If not done properly, it may appear lazy.

Your short cover letter must still cover the following:

1. What are you able to do?

2. What do you want to do?

3. What do you want the reader to do? – (Call to Action)

Example:

“My name is Frank Franklin, and I am currently expanding on my BA in Finance from the University of Chicago by trading live markets for a $200M commodity hedge fund in Chicago. I am responsible for trading currencies, equities, and derivatives for our Senior Portfolio Manager and conduct earnings research for our Long/Short equity fund. The discipline and quantitative skills required in this role have prepared me for the position of Analyst with Flying Mongoose Capital. I have attached my resume and would welcome the opportunity to meet with you.”

The Typical Hedge Fund Cover Letter

The typical cover letter is usually divided into three short paragraphs. Each paragraph should be no more than three sentences.

The first paragraph is your opportunity to catch the reader’s attention. Provide them with one or two concrete examples of how you can fit their needs or help them expand their business. This is the ideal place to mention anything you can give the firm that they typical applicant cannot. This section also can serve the same purpose as the “objective statement” portion of your resume. If you choose to put an “objective statement” in your resume, avoid repeating it verbatim in your cover letter.

The second paragraph should detail your work experience and qualifications in two or three sentences. Stress those accomplishments that are most relevant. Hedge funds and PE will likely be unimpressed that you won a journalism award in high-school, but academic honors in college (particularly those related to finance, math, science) are relevant. Describe at least one professional achievement that could be directly transferrable to the new firm. If you worked as a trading intern, how did you help the Senior Trader operate more effectively?

The third paragraph should pinpoint the specific job you are applying for and how your skills and ambitions fit in. To keep your cover letter short you may be able to merge this paragraph into either the first or second paragraph.

The final paragraph is your call to action. You must ask for an interview or personal meeting. Hedge funds expect their employees to be proactive. Don’t be timid in asking for what you want.

Don’t forget to write company- specific hedge fund cover letters, and ask your friends and family to review them before sending.