Hedge Fund Risk Manager

Northern Trust; Chicago (IL); On-site; USD 80,800 - 133,400; Full time

Benefits offered by this job

401(k) and pension

Medical, dental, and vision benefits

Paid time off

Discretionary bonus program

Job summary

Northern Trust is looking for an experienced Risk Manager in Chicago, Illinois, to oversee risk management for external hedge fund portfolios. This role will involve portfolio-level risk analysis, manager assessments, and providing insights to enhance investment strategies.

The ideal candidate should possess strong hedge fund risk management experience and relevant qualifications such as a Bachelor’s degree and potentially a CFA or FRM. You'll work in a collaborative environment, delivering actionable risk analytics to support investment decisions.

Qualifications

• 3-5 years in hedge fund risk management or related roles.
• Bachelor’s degree in a relevant field is required.
• CFA or FRM is preferred.

Responsibilities

• Monitor and aggregate risk exposures across hedge funds.
• Conduct risk-focused due diligence on hedge fund managers.
• Maintain risk models and reporting dashboards.

Skills

Hedge fund risk management

VaR and risk modeling

Quantitative analysis

Stakeholder management

Education

Bachelor’s degree in Finance, Economics, or Mathematics

CFA or FRM preferred

Tools

Excel

Power BI

SQL

Job description

About Northern Trust

Northern Trust, a Fortune 500 company, is a globally recognized, award‑winning financial institution that has been in continuous operation since 1889. Northern Trust is proud to provide innovative financial services and guidance to the world’s most successful individuals, families, and institutions by remaining true to our enduring principles of service, expertise, and integrity. With more than 130 years of financial experience and over 22,000 partners, we serve the world’s most sophisticated clients using leading technology and exceptional service.

Role Overview

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

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
• Ensure alignment with risk budgets and investment objectives

Manager Risk Assessment

• Conduct risk‑focused due diligence on hedge fund managers
• Evaluate strategy risk, leverage, derivatives use, and drawdowns
• Challenge portfolio construction and hedging assumptions

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

Liquidity & Capital Planning

• Assess liquidity terms including lockups and gates
• Monitor portfolio liquidity versus investor redemption terms
• Run stress scenarios for market dislocation events

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

• 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
• 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 (401(k) 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.

Reasonable accommodation

Northern Trust is committed to working with and providing reasonable accommodations to individuals with disabilities. If you need a reasonable accommodation for any part of the employment process, please email our HR Service Center at [e-mail].