Entry Level Hedge Fund Salary
How much would a 1st year at a $1.5B aum hedge fund with about 20 guys expect to make?
Small Hedge Fund Associate Salary
Your salary will largely depend on the size of the hedge fund that you are working for considering the 2% and 20% structure. However, the general consensus is that analysts coming out of undergrad can expect to make between $60 - $80 k (as of 2010).
One user shared that they worked at a relatively small hedge fund with pay of $60,000 and a bonus between 50%-100% of the base salary. He worked around 60 hours a week in a non-trading role.
While all salaries will differ - the Wall Street Oasis Hedge Fund Industry Report offers a detailed look at salaries in the hedge fund world.
Read More about Hedge Fund Salaries on WSO
- 7 Figure Hedge Fund Salary - Myth or Reality?
- Hedge fund out of undergrad... What's the typical salary?
- Top Hedge Funds: Analyst Compensation
Looking to Break into the Hedge Fund World?
Want to land at an elite hedge fund use our HF Interview Prep Course which includes 814 questions across 165 hedge funds. The WSO Hedge Fund Interview Prep Course has everything you’ll ever need to land the most coveted jobs on the buyside.
Out of undergrad? No idea, I don't know why a hedge fund would hire an undergrad. Normal hiring (at least 2-3 years of experience) I would think base salary around $100k with a bonus dependent on performance, if you are up 10% I would think maybe $100k bonus IF you have 2/20 economics. Above 10% returns for the year and your bonus probably can grow pretty large but it all depends on what kind of economics the fund has and your annual return. By the way, I'm not sure who told you $1.5 billion is a small hedge fund, in the hedge fund world no one would call that small.
if you're getting 100+100 out of undergrad you should be VERY happy. what kind of role is it? if it's non FO, maybe 55-65 + up to 100%. FO maybe 70+70 is realistic. i agree 1.5b is not small.
I was suggesting 100+100 With experience. I've never heard of anyone making 100+100 straight out of school.
actually, there's a hedge fund recruiting at Harvard college with a BASE of $240k.
Do you mind telling us which hedge fund this is? I know it's not de shaw, citadel, or AQR.
You mean undergrad? I think that isn't true and is probably a typo. If it is true that is the greatest job in the history of finance.
hey guys, thanks for the replies. this is for straight out of undergrad. the firm's been around for 5 years or so, and they've annualized 25%+ returns for the past three. assume a trading/quant analysis position. anyway, assuming a 2/20 fee structure, there seems to be plenty of money to go around. that's why i was wondering about the comp structure.
thanks
2 years into the job my friend at a 1B fund was making 400K+ net (don't know his first year, but the escalator is quick if you prove that you're good)
hmm they need anyone else? seriously, email me. hehe. based on the added info, i would revise my estimate upwards. ultimately it comes down to the partners' philosophy. some guys will never pay a young guy a lot money. some believe in paying top dollar to get top talent. also, with numbers like that I wouldn't worry much about what they pay you.
it is totally variable..ive seen analysts at top tier funds make as low as 50-60k base salaries and i guess someplace above is paying $240k to a harvard grad, so it could be anything.
BTW 1.5BN is not a small hedge fund.
I think that 240k thing is bullshit. Some fund called "Spark" is always advertising that at HYPS (including for their HR and IT people), which I find nearly impossible to believe.
I wouldn't get your hopes up. While a couple fund managers may be extremely generous and pay a lot, most will not pay you more than they must to keep you, assuming you're good. I would expect 70 base + between 30 and 60 bonus.
I've seen this company too. They put a 200k+ in the title of all their job postings (even "technology recruiter"!). Based on what I read, they seem like a quant fund. Anyways, here's their Company Description from my college's job postings:
hey if someone with access to that 240k post would care to PM the text of it to me, I would enjoy reading it out of curiosity. you can redact the relevant contact info if you're concerned
edit: in return I could exchange a bit of color I just dug up
ohhh that one ... that's funny. I had seen that post before elsewhere and had immediately pegged them as DE Shaw due to the overwhelming pomposity. (next gen, brilliant phds, please.) i say it's funny because my intel revealed that they are a spin off from DE Shaw ... so I guess it makes sense.
anyway sorry for the semi threadjack, OP's fund sounds more interesting
My friend is in a "small" 2.2 billion aum hedge fund out of undergrad, but the portfolio manager that he is under only manages 300 million of that 2.2 billion.
His pay is $60,000+ 50%- 100% of salary as bonus..
He is a 1st year analyst (non trading role) . He works about 60 hours a week give or take. Not too bad for a recent college undergraduate
Compensation will vary greatly on how much money your pm manages.
Expect $60-$80K fresh out of UG
Street base, 50-100% bonus is about right for $1bn fund. I think of street as 75k but not everyone has caught up.
Entry level trader salary at a small hedge fund (Originally Posted: 12/29/2009)
What kind of salary could one expect to start at as a trader with little to no experience at a small hedge fund (less than 50 million under management)?
40-50k
Salary Progression - Asset Management or Hedge Fund? (Originally Posted: 04/15/2015)
Hello All,
I just wanted some advice on salary + bonus.
I am currently a 1st year at a $10B AUM mutual fund in an insurance company and I came straight here from undergrad last year.
What is the average comp (base + bonus) in the market like for the following positions I will get in the future?
As a 1st year, I'm getting 77k base plus target bonus of 15%, but the bonus last year was 20%
Senior analyst - ?? Director - ?? Senior Director - ?? Managing Director - ?? Senior Managing Director - ??
Second Part. What are the chances of me getting into a macro hedge fund after 5 years of doing macro in this fund and what are the comps like there?
In research, you generally start as an associate then eventually make your way up to analyst/MD. So the structure is this:
Associate Senior Associate Analyst Senior Analyst
Then it can vary on whether you want to remain an as an analyst and go into an MD of research role, or want go to on the PM track.
Thanks! I thought i'd make it more general for people not in the business to understand because it's a little different than the banks.
The way it works on my team of 6 is like this:
Associate (which is me) Senior Associate Director Senior Director Managing Director Senior Managing Director
Also, I am not in research. I am in a portfolio management team.
I'd rather not share specific comp or firm details (PM me if you want), but my firm is typically Associate -> Analyst -> PM, with various titles along the way... some analysts are Directors, some are VP, etc. I'm an associate and although starting comp was low, it is expected to ramp up relatively quickly and the jump once you hit Analyst is quite substantial from what I understand
Hedge Fund Compensation Structures (in light of IB salary increases) (Originally Posted: 06/23/2015)
Hi guys,
am in a process for a top fund in London, and they've offered the first round of terms to take me on -
they'd take me on after my summer analyst bonus, but what surprised me is the base they're offering is the same I'd get bumped up to after my summer bonus - which left me a bit surprised.
What's the typical going rate nowadays? I get it that variable comp is much higher at a HF, but no bump up in base I thought was a bit unusual?
I have read a few posts on this topic in these forums, but they seem to be relatively dated, so would like to get some 2015 figures, and specifically about what these guys can offer when base salaries at top banks have increased recently.
If I do move into this role, also promise to give me low-down about my process of getting there.
Cheers
As am sure you are aware it varies from situation to situation (location, experience, division, etc.) but what is more important is whether you are willing to keep your pay flat to stick with the fund.
That also depends on your specific situation but if other offers arent flowing-in and your committed to work in the HF industry - then there really is no decision to be made. If you have a bunch of other offers to leverage - great.
If not is it really worth it to beat yourself up over a few thousand pounds? If you perform well over time, you will be compensated.
depends on how junior you are. i'm at a top-tier HF front-office analyst role right out of undergrad, and my all-in pay is similar to IB pay, but my work hours are market+2 or 3. That's a potential benefit you may be able to look forward to.
Thanks for the replies.
I know that lifestyle will be better, and given the group it is for, I do think bonuses will be better than IB. I mean I expect the bonuses to be 100% and upwards of base, which wouldn't happen in my position in IB at my level.
I guess the question really is if this is standard practice on the base salary? I just expected them to sweeten the deal on the base compared to what I have. Or are you guys basically telling me that it very much varies and this is not something unheard of. I want to know what my negotiating position is here… I doubt I’ll be happy/accept if they don’t budge and provide a bump, but what’s the chance of them not doing that?
I also could go interview elsewhere, but don’t really want to, to be honest, as I think the group is great. Got the offer relatively early on (not to say it was a short interview process), so am slow on the other processes at this point. I know in PE the base would be higher, but don’t think that’s what I really want.
Comp is going to be dependent on AUM (obviously). If you're straight out of undergrad, then I would expect all-in comp to be around that of a middle/top bucket IBD analyst (which is great, considering you'll likely be working considerably less). Your bonus will also be dependent on fund performance; you aren't guaranteed 100%+ of base. Also, you probably have no negotiating power if you're going to a top fund and would still be an analyst if you were in IBD.
EDIT: Like every post about HF comp on WSO the answer is....drumroll....it varies.
To be honest, you don't have much negotiating leverage here. Why would they sweeten the deal? What incentive do they have? You are a junior resource that they can find elsewhere. If you're coming out of undergrad, your candidacy isn't THAT special or unique.
You say you won't be happy or accept if they don't budge. Oh well. They'll see you as someone who cares more about the short term gain than the learning opportunity and long term upside. Do you really want to spend more time and resources recruiting elsewhere because they won't bump up your base by 10k or so, especially if you've said you think the group is great?
Aside from the obvious fact that the answer to every question about HF comp is "it depends", bear in mind that junior IBD comp is likely approaching a peak at the moment. The current combination of elevated base salaries, reduced hours, and a return to >100% bonuses is probably unsustainable. If anything, I think you are doing well to maintain the same base as you are getting in banking. It is also a job with generally better hours, more interesting work, and opens a career path with significantly higher potential earnings power in the longer term.
I've said it elsewhere and I will say it again, making the decision of where to take your first HF job on the basis of comp is extremely short-sighted (and I will also repeat, that is not necessarily the case several years in)
Yes, this is exactly true. As I have learned throughout my career - the knowledge that you gain by working at a HF is invaluable. You will also be pivoting your skillset and changing the future trajectory of your career path (which is valuable). It is definitely not unheard for IBD salary to be comparable to a first year HF.
Just because you did an IB stint does not mean that you will have the turn-key skills necessary for HF - they will probably need to train you and your first year / two years will be an exponential learning ramp-up period. You will be getting more value out of the experience than the fund. Down the road, you will have plenty of opportunity for salary and bonus advancement - especially if you perform well.
As an undergrad, what do you think you have done to deserve a higher base pay than others? Seems rather entitled to me.
I thought I was clear but I guess not - 1) I've done my IB stint already and 2) this was to see where the market is at; i.e. is IB analyst base (at a bank that has recently raised the base) comparable to HF or should I expect a bump up / can I negotiate one
Guess the answer has generally been that the base salary can be expected to stay the same and is no biggie if that's the case. Confirmed this with information outside this forum.
Though let's also put it this way - knowing the offer is generally comparable to market, nothing bars me from trying to negotiate up, we're ambitious people anyway, aren't we? I may get a bump, I may not. However junior you may be, when you're switching jobs you have some negotiating power and its a mistake to think not. You're not coming out of undergrad desperate to get an offer, instead you're coming from a good institution with good pay, a specific set of skills that they're trying to get on-board, and you are the guy that passed their interview stages after all, so you're their best option.
Quas aut esse eos quia. Autem iusto deleniti repellendus aspernatur corrupti totam fuga. Quisquam nemo blanditiis autem vel veritatis voluptatibus. Et iure iure ullam temporibus aut harum optio.
Odio non et possimus omnis aperiam. Aut reprehenderit laudantium non nulla qui repudiandae nihil.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Odit qui rerum vero natus. Omnis nemo mollitia perferendis veniam labore officia debitis. Corrupti modi in fuga et culpa repudiandae.
Ratione autem sit aspernatur excepturi. Architecto aut libero sit qui.
Repellat ducimus incidunt delectus optio et nam. Sit voluptas rerum tempore esse quasi et ut. Labore voluptatem ipsa amet omnis soluta qui.
Ea et qui ea ea. Quasi consequuntur est qui molestias consequatur id dolores. Eum blanditiis inventore et eos similique. Et quasi ex et iusto dolor. Similique nulla sint pariatur consequatur.