Hedge Fund Compensation in a Banner YearHF
The question of the day is this....
I work for a relatively small fixed income relative value hedge fund that has had great returns. I've been here for several years and am now in charge of all trading (but we don't trade that much). We all contribute to every aspect of research and modeling and every one here is a master of all aspects of the fund.
2009 was RETARDED and we were up a ton and the fund earned crazy monopoly money in management and incentive fees. Our overhead is minimal because our office space is a tiny and dumpy and nondescript. Our biggest expense is bloomberg terminals.
My cut as essentially the #3 guy was a bonus of less than 1% of that 2009 windfall. I was thinking I'd get at least 2%-5% of that because (this sounds cocky but it's true) I'm kind of an important part of the puzzle here (lol... I guess I was wrong about that assumption) and if I walked out the door, the boss would be F'cked up for a while trying to replace me (but he'd tell you that he's "OK with that.")
The boss is now managing my expectations down for 2010 saying that our returns of 2009 won't be repeated. So I ask you all, what do you think I should have been paid? And should I shine up my resume for job turnover season after year end 2010?