Hedge fund base compensation question
Do hedge funds typically give any raise to your base salary each year? Coming up on the end of my first year and I’m not sure what to expect in regards to base increase (leaving bonus aside)
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Usually it gets capped very quickly. Unless the base is a significant part of the compensation, most people don't care too much about it anyway (speaking about hedge funds).
Yeah makes sense. What are typical base salaries for a HF analyst (roughly 1-3 years in)?
My data in prob outdated but anywhere in 100k-200k range would make sense
As others have mentioned it will vary a fair bit by fund, but in general there will not be huge increases and base will cap out quickly. That is more true at MM than SM and also more true at smaller/mid sized places than larger places that get closer to being asset managers.
At the junior levels they may bump you 10% or so for the first few years.
Then there are larger increases as you become very senior (partner or similar), and of course depends on what part of the firm you work in. The more you are tied to the PnL, the lower your base will be (usually).
Pretty much all HF bases are between $125-200K. Most are like $150K from my experience
Expect some bump in base as you get experience/promotions for responsibility and inflation adjustment. Your PM probably isn't making over $200k base, so that's your ceiling. Fill in the white space between where you are and that based on seniority/responsibility.
This is mostly right for MM, at larger SM (and other funds in general) the base gets higher (as I pointed out before).
Most analysts I've seen make 150k salary, though I think max, even for very senior analysts is < $200k, maybe like $175k.
Again this is mostly for MM. There are funds that pay significantly more for senior people (and with guarantees). If you have PnL to your name, then generally agree with the above, especially in a MM structure. But if you are overseeing other PMs and are part of a larger organization (I.e. large SM) the guaranteed and base will be higher by a fair bit.
Yes, mine is for multi manager.
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