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!
Happy to help, pm me. Have insights here.
$50m is too small to join as third person
Why?
I mean you'd know better than us - you have a math degree and know how HF math works from your allocator seat
LOL. This guy probably writes $10MM checks, wants MFN treatment, paying 0% and 10% over the S&P-500, and calls every week for an update. All while thinking “man those hedge fund manager are so rich”
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