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Based on the most helpful WSO content, BlackRock, with its nearly $10 trillion in assets under management, offers a variety of job opportunities and has a significant presence in the asset management world. While the specific details about compensation at BlackRock's L/S hedge funds aren't provided in the context, it's generally understood that compensation in such firms can be influenced by factors like the size of the fund, the role's seniority, and the individual's performance.

To give you a bit more color, compensation in the hedge fund industry, including at places like BlackRock, can vary widely. There are a few components to consider:

  • Base Salary: This is the fixed income part of the compensation and tends to increase with experience and seniority.
  • Bonus: This can be a significant part of the compensation in hedge funds and is typically tied to the performance of the individual, the fund, or both.
  • Long-Term Incentives: Some firms may offer profit-sharing, carried interest, or deferred compensation plans to align the interests of the employees with the long-term success of the fund.

As for a compensation ceiling, in the hedge fund industry, particularly for roles that are tied to fund performance, the ceiling can be quite high, especially for those who progress to senior roles like Portfolio Managers. However, it's also important to note that the hedge fund industry is performance-driven, and compensation can fluctuate with the success of the fund.

For the most accurate and up-to-date information, it would be best to reach out directly to BlackRock or network with current or former employees who can provide insights into the compensation structure for L/S hedge fund roles at the firm.

Sources: Top L/S in London and Hong Kong (e.g., Lone Pine, Viking, Coatue, Maverick, Darsana, etc.), Everything You Need To Know about BlackRock, What I've Learned About Hedge Fund Structure and Compensation, What I've Learned About Hedge Fund Structure and Compensation, https://www.wallstreetoasis.com/forums/compensation-differential-nyclondon?customgpt=1

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Worked here for a few years in the group they call “active equities”. Best year comp was around $400k all in as an associate, fund did well I had good contribution. Following year I did well but fund did poorly and they crushed everyone’s bonus (some funds bonus down 50% YoY).

I can’t really speak for event driven strategies, but I’d generally say active equities is a poor performing group. There are definitely some smart people, but just look at the amount of 5 star Morningstar funds - I’m not sure they have any. The focus is more on marketing and fundraising, less on generating alpha. Management will cheer you on for being on CNBC vs actually generating alpha. Good alpha year yet flat or negative flows and execs will honestly be disappointed. Teams operate in silos and collaboration isn’t organic. Turnover exceptionally high. I think the root of the problem is the execs who run the business - none of them have investing backgrounds, more sales or product management type positions. Execs think short term and that pressures funds to do the same. Sad truth but I simply wouldn’t invest my own money here, so happy to have moved on career-wise as well.

 

Event driven is a very isolated team and performance is not as good as claimed.  Team is viewed as a problem within BLK.  Promotion is difficult and no one except the team head will ever make MD.  Supposedly they pay better than the rest of BLK but that’s not saying a lot.  Small group seen as high maintenance and some wonder how much rope they’ll continue to have, their aum is down this year. 

 

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