End of year HF macro discussion - 1st year out of undergrad
Hi,
as the title says, joined a a macro HF after uni and been there for a year now. The fund is up 4-7% on the year, and was wondering how people handle comp discussions:
1- I have not pitched a trade ideas, but this is down to the fact that my role was slightly changed and ended up focusing more on the macro quant side of things, forecasting and other stuff.. The only trade idea I pitched was well received but no one acted on it.
2- My coverage was changed during the year due to internal politics which is pissing me off tbh, but was promised we will be back on track next year. I had opportunities at MMs that I rejected just for the coverage and I really regret the choice.
3- I feel I fucked up the salary negotiations when I signed, my salary is in line with BB 1st analysts but job is comparable to someone who has a phd/assoc at buyside, no point in complaining about it now but it is annoying me.
How do you think I should handle the comp discussion?
Based on the most helpful WSO content, here are some suggestions on how to handle your compensation discussion:
Highlight Your Contributions: Even though your role was changed, you still contributed to the team by focusing on the macro quant side of things. Highlight the skills you've gained and how they've added value to the team.
Discuss Your Role Change: It's important to communicate your feelings about the change in your coverage. Express your interest in returning to your original track and how you believe it will benefit the team and the fund.
Address Your Salary Concerns: It's okay to admit if you feel you're being underpaid. Use this as a learning experience and bring up your concerns in a professional manner. You could say something like, "While the experience gained from this role is more important than compensation, based on my current/previous salary and my expectations for compensation related to such a role, I feel like a salary of xyz would be more appropriate."
Future Opportunities: If you had opportunities at MMs that you rejected, it might be worth discussing your long-term career goals and how you see your future at the firm. This could open up a discussion about potential growth and advancement opportunities within the firm.
Remember, it's important to approach this conversation with a positive and professional attitude. You're there to negotiate, not to complain. Good luck!
Sources: Feeling Undervalued? Do This, Is this associate compensation competitive?, Okay so I've got an offer. Now how to negotiate a higher offer?, PE associate comp, Solved
bot answer not bad haha.. any added thoughts are appreciated
"Thank you sir, I appreciate the opportunity to be here"
^is right… you haven’t contributed to the fund given no experience/pnl so you have no leverage and likely offer no real value to the fund today (tbh you are likely a drag on the team at this point in ur career which is expected). So why should you get paid out?
Why would they pay you like a phd if you don’t have one haha… they can just fire you and hire an actual phd if you ask for that raise
Wtv they give say thanks and focus on learning and getting the most out of your experience, now is not the time to get cute with comp
thanks a lot, v helpful. I do not know anyone in the field so it feels a bit like the wild west when it comes to these discussions. I guess it's important to stay anchored and I sometimes lose sight that it is a decent place, PMs are nice and the overall environment is quite nice.
As I said, the coverage was changed and my boss repeatedly apologized for it and said we will be back on track next year so let's see.
The reality of the situation is, if you are comped under market and they have the ability to pay you then you should leave for another fund. It is a clear indication that there is no future for you at this place and they just have you around doing random crap. If you’re doing quant work and a key person producing things, you should be paid in line with other junior desk strats.
That being said if you are undercomped they know what they’re doing. Very unlikely they’re out of touch unless this is a Mickey Mouse shop. Assess the situation and quietly leave if you have to.
Edit: this is assuming those similar associate seats were accessible to you. That you have a masters or PhD in a quant field
What are you talking about? Dude is 1 year out of school and doesn't know what he doesn't know. Whatever they wanna pay him is fine. This is something to reassess after 3yrs in the seat.
I’m just saying if he’s in a seat building things directly related to IP and he’s performing then he should be paid street. The cost to prevent IP bleeding is low because he is 1 year out of school, so if they don’t want to pay you in line with your peers it’s a red flag. Either you’re not good or your seat is not good and you need to prove yourself to go someplace better internally or externally. That’s if he’s actually doing markets facing quant work.
Thanks! I guess from their perspective, I accepted a somewhat analyst salary when I signed which was on me (life was incredibly stressful then and needed to help out my siblings so jumped on the first job I got). I do not think they will low ball me in any case, but do not want to be mugged off tbh. So what you said makes sense.
I have had conversations with other HFs but never past business development.
This was exactly what happened actually in my first job out of uni. I was a macro analyst at a fund that had no quants and I built a bunch of screening tools my first year. There's no negotiation since you drove no revenue. You'll get a bonus (mine was actually higher than I had expected) and you talk about your goals for next year then you move on.
Hi, thanks a lot for your answer. I was wondering how you navigated the role? I feel it is very nice seat to start a career at, but progression seems tough. A few recruiters reached out for roles at MMs, but they often seek specialists or someone with trading experience, mind sharing more info about your progression?
Sure - happy to go into more detail than the below if helpful, but my path was the following:
How did the discussion go? Any updates?
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