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Hedge Fund of Funds Risk Manager

Chicago, ILPosted 2 days ago
Full-timeremote

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 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

Qualifications

Necessary 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.

Working with Us: 

As a Northern Trust partner, greater achievements await. You will be part of a flexible and collaborative work culture in an organization where financial strength and stability is an asset that emboldens us to explore new ideas.

Movement within the organization is encouraged, senior leaders are accessible, and you can take pride in working for a company committed to assisting the communities we serve! Join a workplace with a greater purpose.

We’d love to learn more about how your interests and experience could be a fit with one of the world’s most admired and sustainable companies! Build your career with us and apply today. #MadeForGreater 

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 [email protected].

 
We hope you’re excited about the role and the opportunity to work with us. We value an inclusive workplace and understand flexibility means different things to different people.

Apply today and talk to us about your flexible working requirements and together we can achieve greater.

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Hedge Fund of Funds Risk Manager at Ntrs | Renata