Role OverviewWe 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 ResponsibilitiesPortfolio 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 vs 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
QualificationsNecessary Experience and Education
- 3-10+ 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 (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.
