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I heard for a post-mba analyst at baupost, all-in comp is around $300K.
Wouldn't it be highly variable?
I would imagine that at places like Baupost/ESL/Greenlight, where there are only ~10 analysts, that analysts would get paid quite handsomely for profits stemming from executed investment theses?
I think the teams are at least a little bigger than that. I interviewed at a firm which is either one of the three you named or one very comparable and including all investment side people in the "analyst" bucket there were significantly more than 10 (more like 20-25ish), though of course that included traders and PMs who depending on the fund may or may not share traditional "analyst" duties. Either way of course they're pretty lean on a AUM/headcount basis.
On the profit-sharing, it depends on the fund, but for a junior analyst it will likely have more to do with perceived individual performance and overall fund revenue than with P&L of "your" ideas. Even for more senior analysts, it depends on the fund culture the extent to which your compensation is based solely on your ideas-some places are very competitive and cutthroat, others try to encourage more cooperation/collaboration.
Where I work, the senior analysts each get evaluated on the performance of the ideas they "own" but they don't get a direct cut of their P&L. The way we're structured there's a good amount of collaboration in terms of idea discussion/research and a good amount of our AUM is more mezzanine/mid-market debt style where there's not as much ownership of the idea/short-term P&L. For the junior analysts (such as myself) it's a function of how much the seniors and PM like our work and how well the fund does overall.
I really don't have a lot to offer on the topic of compensation at the aforementioned funds, that being said, it makes sense that head count would be a lot higher at Baupost than Greenlight. Baupost is managing roughly $20bn, and no more than 20% shows up in a 13F (I'm too lazy to look up the filings, but i think it is 3-4bn). They have made money across a wide variety of asset classes. That requires more analysts. Greenlight is managing roughly a third of the capital and has a much more focused style. I really don't know about ESL, but would guess it would have very few analysts. Lampert seems like a control freak and a huge chunk of their fund is Sears.
ESL has like 3 investment analysts....
And like 2 investments...
In all honesty, do enough hedge fund analysts come out of MBA programs, with enough uniformity in experience, to draw any sort of good conclusion on this?
Like some guy from HBS with two years of IB pre-business school is going to get looked at a lot differently than some guy from HBS with four years at another hedge fund pre business school.
This is pretty much always the right answer to any question about hedge fund compensation, but people are rarely happy to let it rest.
At your typical value fund, which of those 2 routes would generally be favored? Or does it vary greatly between different ones?
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