Bonus at equity stat arb shops/pods
I am curious to know how the bonuses have been on the equity stat arb side this year, at both SM and MM. Its been a tough few years for equity stat arb but the general perception is that this year anyone who survived March and rode April-June has done well.
Interested to know about performance as well. An acquaintance of mine in an MM:
2+yr experience, aum approx 1B
+3% through Nov
expected bonus 150 ~ 200k
aum or book size? return is on book size or aum?
Pretty sure he meant book size. 3% on 1B comes to around 30mm, and assuming 20% performance fees the pod has around 6mm to distribute. Not fantastic but reasonable considering that a 2yr analyst is unlikely to have direct pnl responsibilities.
if book size is 1b with 4 leverage, then 3% return means 7.5 m pnl which is reasonable
The other thread mentioned that Worldquant's stat arb strategy did very well.
https://www.wallstreetoasis.com/forums/active-mgmt-crushed-quants-this-year-per-bb
read a article saying 20%ytd, i would say they got lucky,20% is too high for a LS market neutral equity fund
Balyasny, Citadel, MLP, P72 are all 20% or better in 2020. Guess they all "got lucky".
20% would be on AUM I guess. Assuming at least 5x leverage, that is not unbelievable and quite good.
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