Average Compensation for Junior person at HF??

most likely similar to banking/salestrading counter parts... sometimes more, sometimes less.. really depends on the firm and your role.

Base - $100-$150 Bouns- 1.0x-2.0x

hard to define

For out-of-undergrad, those numbers are extremely high. Excluding self-employed entrepreneurs, very few people do better than $60-70 in their first year out.

A person with a technical degree or good work experience may have the standing to ask 100-200.

I could run a billion dollar fund that sheds 50 million in profits with the effort of say 5 minutes per year. Do the math, you just qouted a short-dated treasury yield. And don't give me any bullshit like you calculated profit based on yield above riskless.

Any hedge fund manager dumb enough to pay a first year 300k, doesn't understand the laws of supply and demand. There are thousands of bright young kids willing to devote their lives to fund for 90k to 130k, depending on location. If anything, paying too much could create a hazard for the empoyer in that employee will become amotivated.

Obviously a prop trader lucky enough to get access to enough capital at that early an age could make substantailly more, but on average all prop traders as a group wouldn't.

Quoting jajaja: "show me a self-employed entrepreneur who made six figs their first year out."

Good point. I guess I meant to say "at 22". A lot of the really successful ones leave college to start their businesses, and some of them draw 6 figures by 22. Of course, others go bankrupt and still live in their parents' basements.

"300k in a HF is not high."

No, perhaps it's not, given what hedge funds bring in. But no financially reasonable company will give $300,000 to a college kid. High-ranking politicians' kids sometimes get low 6 digits (for whatever hours they want to work) straight out of undergrad. Math whizzes usually command $60-80k (for 50-60h) as non-PhD quasi-junior quants. Garden variety future financiers are not going to get $300k.

fourkingplus is an idiot. ibanks hire hundreds of analysts every year and are paying them all 100-150k their first year out. Math whizzes can comand all the 80K salaries they want, but 22 year old analyst bonuses are equal to that salary. as for the 300K, no at lot of undergrads get those jobs, but 23 years olds with 1 year of banking do it all the time. not unusual to be 24 and making 300 if you go into banking out of undergrad.

"Anonymous monkey" is the fool here.

The $100-150k bonuses for analysts occured in an exceptional year. Now, let's dissect this further: to get that bonus, you have to last a year. This is easier said than done, since the hours burn out the vast majority of analysts-- otherwise, they would return as associates-- and many crash very early. (Almost no one is fired, in good years, from IB; people leave in droves because they get sick of the hours.) Next, for 100-hour weeks, $100-150k is small potatoes anyway. Consider an analogy: major-league athletes are paid enormous salaries for their age. While there are complaints about athletes being overpaid, many people who have analyzed athlete pay dismiss them: for a person taking on a high risk of injury, who will only be able to work in his industry for a few years, a six-figure salary is not a ticket to the high-life. Analysts are analogous: when one considers the psychological and social dangers of the lifestyle, plus the time sacrificed, IB analysts are not well-off even in spite of the high sticker number. Analysts are, in essence, a more educated version of an Alaskan fishing boat crew... sure, they make a lot of money, but at obscene personal costs that can never be fully repaid.

I was talking about base salaries when I quoted the figures I gave, by the way. It's plausible that an absolute star trader would get a huge bonus at the $300k level, even very early on. One shouldn't count on it, though; many more people think they will be that whiz kid than actually will be.

I made the comment about 50 million in profits and I was wrong and the person that corrected me was right. I defined profits as the funds returns, not the earnings of the entity running the fund. However you should say revenue and not profit because a 1 bil fund earning 15% over one year would have revenue of 50 million, but profits, assumedly of 20 to 40 million.

you guys know anything your talking about...

depends where you are; i've seen young hungry guys going for below 60K a year, all in, to some boutique finance shops--which to me would really blow. Also, if you miss the boat for the good front office jobs out of recruitment, your prospects start one or two years away from the better money.

anyone know current pay package right out of college? firm and salary

just curious

thx

pe funds would be a good benchmark. not be too off the real number. anyone have the excelfile on associate comp data which dealbreaker.com claims to have access to??