London: Update on P72, Citadel and Millennium graduate programs salaries

What are the salaries for multi-manager graduate programs in London?

Would be great to get an insight on during the academy / training (1st year) and once joining the teams (2nd year) salaries and bonuses.

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  • Analyst 1 in S&T - Other

it's how the hedge fund model works in conjunction with how multimanager hedge funds work.

1) Hedge funds are investing roles, you as a junior are directly tied to how the fund performs in a more direct way than if you're a junior at a large investment bank. Public markets have a degree of randomness and uncertainty because you need to a) realise something about a business before your competition does and b) hope they eventually see the same thing so the price of the stock drives or crashes to where you believed it would go. This all affects your own employment, if the portfolio is down you are at material risk of being let go; so you're always thinking of work even when you're not working..

2) the main reason why these funds are specifically quite stressful is that they're multi-managers/pod shops. This basically means you have a bunch of PMs with some analysts running sleeves of the fund's capital and they employ leverage. By using leverage they have really tight risk parameters and it is written in the contract that if you lose x amount, the entire pod is let go. The risk parameters are overlayed by the main fund even though each pod is independent of the others. These funds are also market neutral which means there are a lot of good trades they simply won't engage in because they don't want beta/factor exposure and just wanted to extract alpha. So you have tight restrictions on investment philosophy and holding periods as well as high likelihood of being let go for reasons outside of your control

tldr; very very easy to get fired and can be a challenging environment to make money in - this latter point is probably going to be less true going forward given the new climate the markets are in and investors are looking to park more capital at these types of funds. avg career tenure at these shops is like 2 years lol.

  • Analyst 1 in S&T - Other

will say these programs take like 6 people a year each so not a lot of data points. they assuredly hiked comp last year too for grads to stay ahead of banking jumps.

getting offers for London quite hard - citadel and P72 anyway...Millenium program is new and ran through UBS.

  • Analyst 1 in S&T - Other

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