Hedge Fund Risk Manager

CFA Institute; Chicago (IL); On-site; USD 81,000 - 133,000; Full time

Benefits offered by this job

Retirement benefits

Health benefits

Paid time off

Parental leave

Disability insurance

Equity component bonus

Job summary

Northern Trust is seeking a Quantitative Investment Analyst, Hedge Funds to support risk aggregation, manager due diligence, and forward-looking risk analytics for investment decisions. You will partner with investment teams to provide insights on portfolio construction, diversification, and downside risk management.

The role emphasizes quantitative due diligence, risk modeling, and the creation of risk dashboards for senior stakeholders across global portfolios.

Qualifications

• 2+ years of experience in investment analytics, risk assessment, hedge fund research, or portfolio construction.

Responsibilities

• Portfolio Risk Oversight: Monitor and aggregate risk exposures across hedged funds by strategy, asset class, and geography.
• Manager Risk Assessment: Conduct quantitative due diligence on hedge fund managers and assess performance.
• Risk Analytics & Reporting: Maintain VaR, stress testing, and scenario analyses; build dashboards for senior stakeholders.
• Portfolio Construction Support: Advise on allocation sizing and diversification; identify portfolio risks.
• Ongoing Monitoring & Surveillance: Track risk metrics and detect style drift or anomalies.

Skills

Investment analytics

VaR & stress testing

Risk modeling

Excel

Power BI

SQL

MSCI RiskMetrics

Barra

Education

Bachelor's degree in Finance, Economics, Mathematics

CFA or FRM preferred

Tools

MSCI RiskMetrics

Barra

Job description

About Northern Trust

As a global leader in innovative wealth management, asset servicing, asset management and banking services, Northern Trust (Nasdaq: NTRS) is proud to guide the world's most successful individuals, families, corporations and institutions.

Since 1889, we have aligned our efforts with our three guiding Principles That Endure: Service, Expertise, and Integrity. Together, they reflect the three cornerstones of business conduct which we strive to instill in our employees, whom we call partners, and to provide to our clients and the communities we serve worldwide.

With more than 135 years of financial experience and over 24,000 partners, we serve the world's most sophisticated clients using leading technology and exceptional service.

Role Overview

We are seeking a Quantitative Investment Analyst, Hedge Funds to join our investment team. This role supports the Risk and Investment Teams through 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

Portfolio Risk Oversight

• Monitor and aggregate risk exposures across underlying hedge funds by strategy, asset class, and geography
• Assess market, liquidity, concentration, leverage, and tail risks
• Identify and communicate key drivers of risk and return attribution

Manager Risk Assessment

• Conduct quantitative-focused due diligence on hedge fund managers
• Assess manager performance through regression analysis and attribution of risk and performance
• Assist in investment due diligence through analysis and reporting

Risk Analytics & Reporting

• Maintain VaR, stress testing, and scenario analysis models
• Build dashboards and deliver risk reporting to senior stakeholders
• Provide actionable insights to investment decision-makers

Portfolio Construction Support

• Advise 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

• 2+ years of experience in investment analytics, risk assessment, hedge fund research, or portfolio construction
• Bachelor's degree in Finance, Economics, Mathematics, or related field. CFA or FRM preferred.

Necessary Technical Skills

• Understanding of investment strategies
• An understanding of VaR, stress testing, and risk modeling
• Prior experience with MSCI RiskMetrics, Barra or other risk engines
• Proficiency in Excel, Power BI, or SQL

Necessary Core Competencies

• Strong analytical and quantitative skills
• Ability to interpret limited transparency data
• Excellent communication and stakeholder management
• High attention to detail

Salary Range:

$80,800 - 133,400 USD

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.

Work Authorization

Applicants must be authorized to work in the U.S. without the need for employment-based visa sponsorship now or in the future. Northern Trust will not sponsor applicants for U.S. work visa status for this opportunity (no sponsorship is available for H-1B, L-1, TN, O-1, E-3, H-1B1, F-1, J-1, OPT, CPT or any other employment-based visa).

Working with Us

As a Northern Trust partner, you will be part of a flexible and collaborative work culture, which has a strong history of financial strength and stability. Movement within the organization is encouraged, senior leaders are accessible, and you can take pride in working for a company committed to an inclusive workplace and assisting the communities we serve.

Philanthropy is deeply rooted in Northern Trust's history and is an essential element of our culture. Employees around the world give their time and talent to work for the greater good of their communities.

Reasonable Accommodation

Northern Trust is committed to working with and providing adjustments to individuals with health conditions and disabilities. If you need a reasonable accommodation for any part of the employment process, please email our HR Service Center at [e-mail] , or alternatively you can discuss your individual requirements with the recruiter you are working with.