Can someone walk through comp if you’re managing your own sleeve? Example numbers and details included please. If you’re running $100M and get 15% of P&L on nets of 30-50, is it simply alpha times 15%? How does the math differ if you’re market neutral? Any industry standard math would be helpful here as I’m going into negotiating and don’t know where to start. Thank you. Could not find this via searching (key terms?)
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I am unaware of how it works outside of a low net setup, but I can speak to low net sleeve setups. Generally if you are independently managing a sleeve at a multi-strat, you should get ~half of the overall economics, maybe slightly more as you get more senior. And so if your team payout is 15-20% on your P&L, you should be getting somewhere in the high single digits to low double digits % of your P&L.
Ah - if you don't have a PM overlay, just an independent book, low net payouts should just be in the 15-20% range. I would presume that the comp on the beta component would get a lower payout, but don't have firsthand knowledge.
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