These are the 14 characteristics that make an outstanding hedge fund manager

Hedge fund heavyweight Leon Cooperman, the founder of Omega Advisors, once shared his “characteristics of an outstanding analyst or portfolio manager.”

The 14 traits Cooperman looks for when making hires at his firm was featured on a slide in a much larger presentation the billionaire gave to a group of students at Roger Williams University’s Mario J. Gabelli School of Business a couple of years ago.

Check it out below and see if you fit the mould.

  1. The desire and commitment to be the best.
  2. Strong work ethic.
  3. Thorough and penetrating analysis/in-depth research with a strong analytical foundation.
  4. Good communication skills critical. Can easily write a several page summary of his or her investment views.
  5. Have an intensity which leads one to be on top of positions and ahead of the crowd.
  6. A good nose for making money, e.g. know a good idea when you see one; make sure the position is meaningful for the organisation; know when to back away when the developments are not anticipated — effective risk management.
  7. Have conviction with respect to investment recommendations and confidence to add to a position if fundamentals are intact but stock is down.
  8. Be aware of not only absolutely P&L but also return on capital. Judicious use of capital.
  9. Team player — particularly important in tapping into the expertise of an organisation.
  10. In a typical year, an analyst should be able to produce at least three or four core investment ideas and 10 to 12 trading ideas.
  11. Pride of ownership, sense of loyalty to the organisation and commitment to clients.
  12. Unbiased and willing to admit mistakes, sceptical, creative, curious, bold/edgy, able to take risk.
  13. Can identify hir or her comparative advantage and capitalise on this.
  14. Identify variant perception.

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