Comp Ask for L/S Equity Start-Up

Hello all - happy new year.

I wanted to ask your insight on what a reasonable ask for compensation would be for a start-up hedge fund in a Medium Cost of Living city (above national average cost of living, but less than NYC or Boston). There are two funds I am speaking with currently (details below)...

My background

30 years old

Math undergrad and masters at non-Ivy school, CFA charter

Work experience at two places: (1) creating machine learning models for a large company, (2) allocator role at an endowment/foundation in the 5-15 billion range (I currently manage the hedge fund allocation)

My reason for wanting to switch jobs: I would like to be directly investing money rather than underwriting managers who then invest the money

Fund A (~25mm AUM and growing)

Strategy: Very concentrated value-oriented long-only

Employees: 2 (I would be the third employee)

My role: I would be in a research-oriented role, with no potential to run my own book (the role would be 100% supporting the PM)

Fund B (~50mm AUM and growing)

Strategy: Primarily long/short equity, with potential to add other strategies over time

Employees: 2 (I would be the third employee in this fund as well)

My role: I would begin as research support on the L/S equity side, with potential to run a diversifying book after a year (diversifying book would consist of a strategy I have already built and currently run in my personal brokerage)

I appreciate any comments since I have no real-life contacts who are in this situation. Thanks!

9 Comments
 

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