There are so many styles and types of hedge funds that this is a difficult question to answer.  When picking the right hedge fund, you need to focus on a few qualities like these:

• Performance
• Assets Under Management
• Fund Strategy
• People and Culture

How has the fund performance been?

This is important to keep in mind when speaking with hedge funds.  Usually the fund will tell you its performance when going through interviews. This is a tricky question to ask so make sure you don’t come out on the first interview and ask, “How is performance?”  If the fund is hiring, then they are likely doing well and performance has been good.

How large is the fund?

I would argue against joining a hedge fund that is under $300 million in assets under management.  Funds that small can easily make one mistake and close down. I’ve seen it happen too many times.  Funds that are larger have a better chance of weathering the storm if performance does turn south.

Does the HF strategy fit your background?

If you have a good background for equity long/short investments but have never traded credit, then you should stick with what you know.  Hedge funds want candidates that know a lot about very little, so the more you know about a niche the better.

Do you fit will with the people and culture?

This is very important: making sure you are working the right people.  The last thing you want is a high profile job with the worst team imaginable.  Working at a hedge can be a long-term career and it’s tough to be jumping ship often.