SM L/S HF comp trajectory vs LO?
Assuming a two year IB/ER stint before either, how does comp compare between L/S Hedge Fund and LO roles?
LO is definitely less work/stress, and correct me if I'm wrong but I'm not even sure the HF roles are paying that much more. Seems like 300-450k total comp after a few years in either that might cross into 7 figures if you become SVP/MD (can't become PM at a SM) at the HF or PM at a mutual fund
Bump
Will depend on size of HF. $350-400k is more like 2-3 years of experience. At larger (large in terms of AUM per investment professional) the upside is higher in HF (but riskier, obviously). As an example, 7 figures is the lower bound for senior positions at the funds I know of ($1.5-2.5mm) and it scales up to ~low 8 figured in a great year. You’ll see a lot less variability in LO (more steady high 6 figures and low 7 figures).
HF roles ARE paying that much more when you start tying to PnL.
Won't be the case at L/S SM. Those are pretty much all discretionary
That's what I meant by PnL - senior analysts are not discretionary, their comp is tied to the performance of their ideas.
It's not as a percentage though at any major SM -- it's what the PM thinks you deserve based on your performance and that's by definition discretionary. Misleading to say P&L because the MMs do a literal percentage of your P&L
Eos omnis non quia. Nesciunt facilis aspernatur vel illum. Qui qui et et accusamus non possimus non. Natus sit expedita voluptatibus nihil adipisci. Inventore adipisci sint perspiciatis repellendus non nostrum doloribus. Dolore porro ex voluptate tenetur.
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...