I'm wondering how a typical PM at a long-only firm is compensated.
If it's typical at HF's to give a PM half (or a smaller portion) of the 2/20, then what is the structure at places like Fidelity, Wellington, BlackRock, where fee structures are different?
Does anyone have any knowledge of standard practice?
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Well these are mostly relative return funds so it probably depends on how you do compared to the overall market / funds with similar strategies. the variable component of your salary is probably way smaller relative to your overall compensation compared to the compensation packages of HF PMs. just guessing tho
I very much doubt that many HFs give non-founder CEOs anything like half. Possibly 40% to be split with the analysts, if they're lucky.
I agree, but most firms are running multiple funds, so the CIO/CEO/Founder, would be collecting 1/2 of all PM's funds, plus all the fees on the money that they themselves are running. I agree though that 50% would be max - would assume anywhere between 35% and 50%
Also, I disagree with Lubyanka. The variable component will be 80% plus of salary for a PM. Might be paid for asset gathering as well as performance, or might just be based on performance. I know some major firms pay out based on a formula that includes 1, 3, and 5 year performance figures.
Different depending on each fund. Based on performance (typical arrangements are based on 1,3,5 year numbers) and AUM of the fund.
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