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...highly variable...I would expect a base salary smaller then what you got in banking just because the math dosent work out to well unless the fund makes money...ie at 75MM AUM the firm only makes 1.5MM of management fees! All depends on how many employees, how greedy managing partners are, etc. Quite frankly I think its ridiculous for a sub 100MM fund to even hire an analyst but thats just me...if u cant think of and research less then 100MM worth of ideas what is an investor hiring you for?
Analyst I worked with at a 200M L/S equities fund was bringing in a base of ~350-400K + bonus. I believe this is skewed towards the high side as he was the only other employee besides the Managing partner.
Holy god.
Yea... holy crap... I want in on that fund.
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I should have explained a little further. This "analyst" was in his 30s with an MBA and experience in both IB and S&T.
...if he is the only other employee thats possible...as i said its highly variable. Asking what your comp will be at a 100MM hedge fund as an analyst is like asking what your comp will be at an american strip club. Need more info to make an inteligent guess.
75-90K plus performance bonus which could be anywhere from $1MM to a $25 Wal Mart Gift card.
^^^^^ The real question is.... Is that the market on the Stripper or the Hedge fund analyst?
"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.
Haha good one trade4size, I guess I did leave that one open for interpretation.
What does compensation look like for 1st year analysts at a 500mm-1bn fund, or ones in the 1bn+ range?
Probably around the same; ~$100,000 plus a performance bonus.
In mid sized hedge funds your comp is dependent on... 1. performance of YOUR strategy ideas (in my experience; 50% of the 20% profit taken by the fund) 2. performance of the fund (obviously) 3. Seniority (affects your base comp)
There are other factors but those are the biggies. That was my experience at a ~1bn fund
i really doubt that analysts (regardless of age/seniority) are given 50% of the firms take. PMs rake in most of the ched
There wasn't a major distinction between "analyst" and "PM". There were analysts and partners. The partners were well compensated because their strategies represented the lion's share of the firm's activities. But I can tell you the analyst who brought to the firm's attention the weakness in the MBS market back in 2005 is now an extremely wealthy individual.
You have to remember this was a small shop, employee-wise, and most of the analysts were already top dogs before they came to the firm. Noone was given handouts, and you were expected to perform, but the upside potential was huge. Their competitors (same size, vintage) seemed to follow a similar model. You raise a good point though; times got so good that the partners had trouble giving that kind of comp to their "lowly" analysts. Legal troubles ensued.
Were those numbers for the boom years or more recent?
That's a very relevant question endlessrain, I SHOULD have pointed out that this was in the boom years of about 2004-2006. This particular fund did well, saw a credit crises brewing and took advantage while other firms got killed.
....at a larger hedge fund (multi billion) i would expect an analyst to make more then 100k to start...probably 250k base is more like it. But job security is 0 and they had better do a good job or they will be gone quite quickly. The hedge fund industry is not a standardized place and every fund is different but where I work there is a huge difference between an analyst and a PM. Analysts put out recomendations and do research for the PMs and they get paid better if they are right but nowhere near 50% of the firms take on the trade. The PM is responsible for his P&L, gets paid on that, and then analysts are given discretionary bonuses by the PM's and partners. Analyst is generally not a glamorous spot, it is a serious grind where you get credit for good ideas very grudgingly and you get blamed for bad ones very very quickly. Generally at bigger funds the analysts are very competitive with one another also and it becomes a very cut-throat enviornment as they all scrap to try to win favor with PMs. It really is not a fun job generally and involves alot of politics...The goal of an analyst is to eventually get his own balance sheet and get paid on it and then at that point you can just worry about making money and not have to deal with the rest of the BS. Although if an analyst has made alot of people money in a given year I would imagine they can get paid very well, but no where near the upside of a PM.
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