Hedge Fund of Funds Risk Manager

Northern Trust • Chicago, IL

1d • $80,800 - $133,400 • Hybrid

About The Position

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.

Requirements

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

Nice To Haves

• CFA or FRM preferred.

Responsibilities

• 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
• Conduct risk-focused due diligence on hedge fund managers
• Evaluate strategy risk, leverage, derivatives use, and drawdowns
• Challenge portfolio construction and hedging assumptions
• Maintain VaR, stress testing, and scenario analysis models
• Build dashboards and deliver risk reporting to senior stakeholders
• Provide actionable insights to investment decision-makers
• Assess liquidity terms including lockups and gates
• Monitor portfolio liquidity vs investor redemption terms
• Run stress scenarios for market dislocation events
• Advise on allocation sizing and diversification
• Identify hidden correlations and portfolio risks
• Support investment decisions with forward-looking risk views
• Track risk metrics regularly
• Identify early warning signals such as style drift or anomalies
• Participate in ongoing manager monitoring

Benefits

• 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
• other voluntary and well-being benefits
• discretionary bonus program that may include an equity component

What This Job Offers

• Job Type: Full-time
• Career Level: Senior