Compensation Thread: what was your yearly progression?

Those in hedge funds / trading houses, what was your compensation progression?

Would appreciate some insights into comp progression for roles:

Base/Bonus/Variable Comp

Comments (114)

Nov 4, 2022 - 6:08pm
CommodKings, what's your opinion? Comment below:

Y1: $56k/6k = $62k

Y2: $58k/7k = $65k

Y3: $97k/25k = $122k (switched jobs)

Y4: $102k/34k = $136k

Y5: $105k/55k = $160k

Y6: $105k/$150k = $255k (switched jobs)

Trader

Most Helpful
  • PM in HF - RelVal
Nov 4, 2022 - 8:08pm

12 yoe, 10 yoe buyside

Total comp

Yr 1-4 = $250-600k

Yr 5-8 = $1-3m

Yr 9-10 = $7m / $300k

Year 9 was top decile year. Year 10 was terrible.

Nov 7, 2022 - 5:16pm
100Mgoal, what's your opinion? Comment below:

What's a sleeve?

I am gonna make $100MM very soon
  • 1
  • PM in HF - RelVal
Nov 5, 2022 - 9:32am

L/S equity at an MM platform

  • PM in HF - RelVal
Nov 6, 2022 - 4:50pm

No

You can't do L/S equity investing in almost every shop after S&T.

Most people in my seat did IB, PE, or ER before jumping over.

  • Analyst 3+ in HF - Other
Nov 5, 2022 - 6:06pm

Pretty similar story for me at a SM actually (I work on quant strats):

year 1-5: 250-500k, no significant pnl linkage, just steady growth

6-7: 750k, 1.25m, some pnl responsibility

8+: ? Depends mostly on pnl

Nov 5, 2022 - 11:54pm
powerforward1, what's your opinion? Comment below:

is this a quant shop where quants run the show or are you support for a fundamental PM?

Array
  • Analyst 3+ in HF - Other
Nov 8, 2022 - 11:17am

I am not support for a fundamental PM - our structure is a collaborative (mostly quant) team building strategies together.  I guess this is closer to "quants run the show" at least for the group of strategies that I work on.

  • Analyst 2 in HF - EquityHedge
Nov 5, 2022 - 9:43pm

2.5 YOE, all buyside SM HF L/S joined out of school

Y1: 170k (June start)

Y2: 370k (70% bonus, some PnL link)

Y3 (this year): expecting 400-500 AI through PnL link but may be lower depending on fund's 4Q performance 

  • Trader in PropTrad
Nov 6, 2022 - 9:55am

General Tier 1 Prop straight out of undergrad, this is all in as base doesn't change much. Gained PnL responsibility rather quick:

Y1: 100k

Y2: 400k

Y3: 1m

Y4: Expecting between 1.4-1.9m

  • Analyst 1 in PropTrad
Nov 6, 2022 - 3:41pm

New traders 4-5 years ago didn't have it as good as the new traders nowadays…

  • Quant in PropTrad
Nov 6, 2022 - 11:05am

Y1: 0 (failed startup lmao)

Y2: Expecting ~£190k Jan-Jan period

Y3: Been told bonus share from Jan nxt year, expecting ~£270k for average year of company performance

  • Quant in PropTrad
Nov 7, 2022 - 4:48am

Difficult to say, never been mentioned on this site before & ultra secretive. Makes couple 100 mil / year, couple 100 ppl work there, couple ex Optiver/SIG ppl knocking around, by far the largest entity in our specific product, owner is a billionaire who owns some sports clubs etc etc.

But raw calibre of people and comp not quite on lvls with the likes of JS so I'd say ~T2.

  • Analyst 3+ in HF - Other
Nov 6, 2022 - 5:30pm

Did <1yr banking and moved to pod 

Y1: 200k

Y2: 300k

Y3: 375k

Y4: 800k

  • Intern in AM - Equities
Nov 6, 2022 - 6:40pm

did you get a sleeve in year 4? Damn this site underestimates MM comp

  • Investment Manager in HF - Other
Nov 6, 2022 - 7:33pm
CommodKings

Unreal. Any general tips for those trying to have similar progression as you?

It's a combo of luck and skills (although I do believe you can make your own luck in a way). As you can see, my career was a bit of a grind and I didn't get to the big $$ until later. Outside of being good at your job (obvious…) when I was breaking in I 1) always asked questions and tried to learn as much as possible 2) never had a job that was "beneath me", I jumped at almost every opportunity possible and 3) I found mentors that were going to help me (and show me where I was struggling) but also advocate for me and give me the opportunities I wanted. Honestly, having struggled early on made me much more driven but also didn't make me scared to fail, and I think that helped. 

Nov 14, 2022 - 11:19am
Someone1990, what's your opinion? Comment below:

Wow, well done. Similar situation with the mentors and grinding and all that good stuff. Started with 2.3 college gpa, no finance degree, fired from multiple jobs or not given opportunity to extend temp contracts that I was in. Worked in back office and other non-investment analyst jobs early on then started inching toward equity research

Now 10 years after graduating college, i am at a 400aum HF with 125k base, 50k bonus on personal performance, + discretionary bonus depending on sleeve performance. 

Nov 7, 2022 - 4:14am
theL, what's your opinion? Comment below:

scared to fail is probably the key here. I was scared to fail and didn't join a HF when I had the opportunity. now I am thinking of it every second. it is just crazy

Nov 7, 2022 - 2:51pm
CollegeTrader777, what's your opinion? Comment below:

What is the best seat to maximize comp out of school? Would it be joining a prop shop like imc, optiver, or a multi manager like p72, millennium, etc?

Nov 7, 2022 - 4:24pm
douglasolson, what's your opinion? Comment below:
[Comment removed by mod team]
Nov 7, 2022 - 4:45pm
douglasolson, what's your opinion? Comment below:

If you're looking to earn & learn about bitcoin trying I recommend Timebrookinvestment .com Do your own researches my refer name is Olson

Nov 9, 2022 - 1:11pm
gobucks44, what's your opinion? Comment below:

I enjoy it more than ER definitely though it's more work and more stressful. ER was kind of a boring job after a while. It's very team dependent as everyone says - I got pretty lucky to land on a top team with pretty good culture (very hands off, self driven style). I'll definitely stick around for a while if I can

  • Intern in AM - Equities
Nov 8, 2022 - 11:17pm

by multi strat do you also mean multi manager platform?

Nov 12, 2022 - 7:37am
HFANALYST84, what's your opinion? Comment below:

Comp only on the buyside:

Y1: $250K

Y2: $400K

Y3: $650K

Y4: 350K

Y5: $1.5M

Y6: $350K

Y7: $850K

Y8: Expecting like $400K this year lol

Nov 12, 2022 - 10:53am
channingtatum, what's your opinion? Comment below:

Thought hedge fund partners would make atleast a million even in down years

Is your fund down a lot?

  • Analyst 3+ in HF - Other
Nov 12, 2022 - 1:16pm

lol at ppl thinking u can get paid 7figs easily in a down year (don't even talk about big down year)

  • Analyst 3+ in HF - Event
Nov 12, 2022 - 2:40pm

He's a partner not a random analyst, at least that's what his profile says. At most funds in the multi billion dollar category these people have a comp floor which is in the 7 figures paid from management fees. So I'm not sure what the fuss is about

  • Investment Manager in HF - Other
Nov 12, 2022 - 5:51pm

lol at ppl thinking u can get paid 7figs easily in a down year (don't even talk about big down year)

At large firms partners will generally have floors around there or even higher. That being said, as a partner a down year means 1) you get paid a lot less than normal and 2) you are below your high water mark so big paydays are further away and then the big thing 3) your fund starts becoming a risk since people may pull capital and then those nice management fees go away. So it isn't a fun situation to be in, but 7 figured in a flat/down year is "normal" (when narrowing your sample to large funds and the top people at them)

  • Research Associate in HF - Event
Nov 13, 2022 - 12:35am

2y banking + 5y buyside (credit / distressed):

y3 (first year on buyside): 325k

y4: 425k

y5: 600k

y6 (performed in-line to HFRI distressed): 800k

y7 (performed slightly better than HFRI distressed index in 2021): 1.2mm

y8 (this year): expecting 500-800k given were down YTD

  • Associate 2 in PE - Other
Nov 13, 2022 - 1:00pm

2y banking + 5y buyside (credit / distressed):

y3 (first year on buyside): 325k

y4: 425k

y5: 600k

y6 (performed in-line to HFRI distressed): 800k

y7 (performed slightly better than HFRI distressed index in 2021): 1.2mm

y8 (this year): expecting 500-800k given were down HSD YTD

Nice, sounds like a decent seat, same firm entire time?  We talking big institutional credit fund with a 10bn+ AuM across a few vehicles or a smaller leaner credit fund?

Nov 17, 2022 - 10:20pm
therealballer, what's your opinion? Comment below:

That's insane! How many years of workex you had before breaking into the buyside and what did you do before?

Thanks

Nov 18, 2022 - 1:17am
CommodKings, what's your opinion? Comment below:

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  • Analyst 3+ in HF - EquityHedge
Nov 18, 2022 - 10:45am

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Nov 21, 2022 - 1:16am
AttackSnail, what's your opinion? Comment below:

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