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
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