Compensation season

Based on the most helpful WSO content, here are some insights into compensation benchmarks for various roles in hedge funds:

Total Average Compensation

• First-Year Analysts and Associates: Average total compensation (base + bonus) is $155,000.
• First-Year Associates: Compensation ranges from $163,000 annually.
• Vice Presidents: Compensation can go up to $453,000 (note: small sample size for this position).

Top Companies for Compensation

• First-Year Associate Highest Average Compensation:

  • Citadel Investment Group
  • Oaktree Capital Management
  • Arden Asset Management

• Vice President Highest Average Compensation:

  • Highbridge Capital Management
  • Oaktree Capital Management
  • Strategic Value Partners

Compensation by Role and Experience

• Analysts (Age 28-32) in Large Multistrat Funds in NYC:

  • Compensation tends to flatten out at mid-levels unless they become PMs.
  • Junior and mid-level analysts are considered commodities until they prove consistent PnL contributions.

• Junior Analysts in Bad Years:

  • Compensation is not tied to PnL; viewed as part of the overall cost structure.
  • Higher up roles have more volatility in compensation tied to performance.

Regional Insights

• London/EU:
  • Distressed HF in London (3.5B AUM) recruits from undergrad with 1st-year compensation around £150,000/160,000 (including bonus).

Key Observations

• Correlation with Career Advancement: Similar to investment banking, hedge fund compensation shows a correlation between career advancement and the percentage of bonus in overall compensation figures.
• Performance and Pay: Performance does not always have a clear relationship with pay. Job security might be influenced by pay, but compensation is often comparable to what one would have made in banking or PE if they are a good performer.

For more detailed and specific data, you might want to refer to the full reports available on Wall Street Oasis or other industry-specific compensation surveys.

Sources: Large hedge fund analyst compensation, 2017 Hedge Fund Report: 8 Key Takeaways, 2017 Hedge Fund Report: 8 Key Takeaways, What I've Learned About Hedge Fund Structure and Compensation, Hedge Funds COMPENSATION (London/EU)