Are titles @ SMs meaningless? Capping out?
Just from looking at Linkedin, I have seen that at top notch places such as Silver Point, D1, and a handful of other $5-15bn shops, you can't really make it past that senior analyst level. Yes, technically speaking a SM should have one PM and a bunch of analysts, but there are plenty of SMs with partner/MD/PM titles. I get that D1 is newer, but let's look at Silver Point: I don't see a single person that made it past that senior analyst title, even if they've been there for over a decade. I figure a senior analyst at a place like Silver Point or D1 pulls in anywhere between $1-3mm a year, but what do I know. Incredible comp for anyone at any age, but I get a sense that a lot of these guys are young, and have the capability and desire to crush it (and get fairly compensated for doing so) as they get older. Can these senior analysts break that 8 figure threshold in a breakout year, implying that titles don't really matter? Or does comp kind of cap out at that $1-3mm level for senior analysts @ most of these places, meaning you need to be at that partner/MD/PM level to pull in 8 figure prizes?
The only thing a hedge fund is worried about is generating large returns whilst sticking to the mandate they gave to their LP's. I heavily doubt at a SM anyone is caught up what their title is and care much more on generating returns as thats how they get paid. I mean, I'd rather my title literally be 'Model Monkey' and work at a fund generating insane returns than a fund where I was 'MD' and struggling to survive. In short, does it matter if you're just an 'analyst' if you're getting more money than God? I think not :)
Titles mean nothing in this business.
The more meaningful differences are whether you get a % share of profits as a partner or not. But being a partner doesn't necessarily mean you make portfolio allocation decisions. By definition, there isn't much scope at all to become a PM at a single manager- if you're good enough and comfortable with managing risk then you leave and start your own fund.
Same reason why Mike Milken doesn't wanna be CEO of Drexel Burnham Lambert.
Keep in mind that many partners at single manager hedge funds don't put it on their LinkedIn and just leave in "Sr. analyst." They prefer to remain low key.
Silver Point has Mule on top with a handful of "partners" that oversee everything and monitor the senior analysts. The 10 senior analysts run portfolios and they each have 1-2 junior analysts that help them do the work. Each senior analyst runs about $1 billion so I would expect comp to be significantly higher than $1-3mm.
The same goes for analysts at MMs, not just SMs. Some of these senior analysts are effectively portfolio managers and manage more than PMs elsewhere. Unlike investment banking or most corporate jobs, analyst at HFs can be an extremely senior title in some shops, with more prestige than an MD title
That’s right, the PMs at one of the major MM platforms each run $2-4bn with 2-4 analysts that have P&L responsibility (I think they’re each responsible for about $500mm to $1bn on average of the PM’s portfolio, the PM is more of a risk manager / signs off on the trades to some extent. This is all going to vary slightly PM to PM). The analysts can bring on associates (usually just 1 if they elect to do so) to help cover their universe or they can do it themselves. So effectively it’s a hedge fund with $2-4bn aum and about $500mm to $1bn per investor. When you do the math on the fees they’re generating, there’s more than enough to go around after accounting for the platform’s cut. You have to evaluate whether the career risk is worth it as an associate (post-IBD / PE hire) because you’re committing pretty heavily to the MM model but if you’re good you can promote very quickly. I know an associate that was promoted to analyst after 2 years, and when you get that promotion your comp will start to be directly P&L-linked. I’m not aware of another seat on the buyside where you have the opportunity to run $500mm+ 4-5 years out of undergrad (again, this is all contingent on you performing).
Is that really how large the books are on average at the large MMs? I was assuming the average book size was more in the 750-1B range, except for Citadel which I thought was around where you mentioned.
What would the average book size be at a SAC/P72?
Would a young MM PM at Citadel or MLP make more than an analyst/PM at a tiger cub, if both had great years? What would that number/comp structure look like for both?
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