Buy side Equity research 3yr for mutual fund Compensation in San Francisco Area?
Hello everyone, I am looking for some industry advise on Buy side equity research for a mutual fund (not a hedge fund) compensation range in the San Francisco area. I got a job right out of college, working for a small office around $1b AUM small-cap value fund. I just completed my 3.5 years at the company. Let's just say I have 3-year experience. I have no clue what my peers are making since I never worked for any other firm. Most web search compensation range is based on Hedge fund and it seems high.
My third-year base pay is $120k, the max bonus is 50%, the company usually pays around 30% because the other 20% depends on our AUM growth. My responsibility is more like an associate PM because I manage our healthcare stocks. (My PM gave me full responsibility for this sector) Additionally, I have a few tech ideas and eventually will take over the Tech sector.
I love my job because I am always curious about everything, but the Web /CFA compensation range is throwing me off a bit. So, I am looking for some comparison here!
Thank you, everyone, for taking the time to enlighten me!!!
Hi Humble_Experience, check out these threads:
More suggestions...
I hope those threads give you a bit more insight.
What’s the headcount of the investment team?
I am trying to figure out what market rate is for a similar amount of experience at similar sized fund, but in a lower COL market.
I have also seen data points all over the place and I have come to the frustrating conclusion that it just depends.
Looking at the economics of a relatively lean fund of that size you come to realize that the PM can pay you whatever they want. Because at the end of the day whatever they pay you is less that they are taking home. So if you have proven your value and continue to do so I would imagine your compensation would reflect that.
Oh yes. I am happy at the firm and they are happy with me. They have increase my salary every year but i am lost with market data on how much the industry make. Web equity reserach comp seems really high compare to me. I am already a sector head, so i don't want to be under pay for the value i bring.
If it helps, your current all in is similar to my 1st yr out of undergrad at ~$4bn single manager Long/Short equity shop as a junior analyst, but base/bonus split was more like half / half for me. 2nd year I am expecting >200K (firm had good year and AUM up) If I have to guess, I think you are slightly underpaid but maybe not by much. If you are gonna get to run two sectors (healthcare + tech) I honestly think you have a really good gig for experience sake. You can always move to MM HF after you get some sort of track record (if you do well that is, obv)
Thank you for your response. I thought about being underpaid. (But i always talk myself out of it, since i came from a non-target school. lol) I really apperciate the job offer and working environment. You nailed it. The firm need to do well! My firm doesn't like to grow and we are very old school. (Or limited resources cuz small AUM) 2019 was the first year my performance was tracked, i am the sector head for healthcare. (there were some names that were not my, last year) Payout was not meaningful eventhough i more than doubled our benchmark performance because the firm lost some clients. It's amazing to hear you only have a single manager that run a $4b AUM. we have 2 partner, 2 analyst (Including me) that run $1b, and my boss said we are lean lol.
Yea haha I call it a Single Manager HF to distinguish from places like P72 Citadel but trust me our fund is actually quiet bloated in terms of the heads trying to get a share of that $4bn. Like I said before I think you are in a good spot. If you really can master the Healthcare sector, build connections, and show provable track records of generating alpha there, that alone is gonna make you millions+ down the line...
What is a typical investment horizon for P72's L/S strategy?
I don't work there but from what I've heard it's the same as all MMHFs - depend on teams but anywhere from 2 wks to couple of months seem reasonable; most of your bread and butter picks will be betting on the next quarter's numbers afaik
Thanks for the compliment and your feedback. i hope i am going down the right path haha. I am less concern about my pay because i freaking love my job and my work environment. i think as long as i can add value to my company, i will feel good. Plus, i will be tech sector head in the foreseable feature. Thanks for sharing what's out there. Do you mind we connect? Not sure how to PM you here.
I would say all-in $150-180k..
150K - 250K?
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