Hey guys,
Earlier this year the hedge fund I worked for closed due to many redemptions. I managed to find a position in a bigger hedge fund. It is a Single Manager shop but in practice I am running my own strategy.
Not helped by my previous situation (no job + previous HF that was shut down) I did not manage to negociate my comp, meaning I did not get a lot of info about bonus policy, and did not ask for a % of PNL guaranted.
As year end approaches, I realize I have no idea about what to expect as a bonus. Do you think it is obvious that it will be linked to my strategy's PnL or should I clarify that with the PM?
Thanks
My role was like this not long ago:
"in practice I am running my own strategy" and "did not ask for a % of P&L guaranteed"
You want to be in this position for as little time as possible.
You have probably already learned that as soon as P&L is tied to your name you will bear all of the responsibility for anything that goes wrong / drawdowns, and are taking the risk that comes with that (no bonus, getting fired), so you want to make sure you are getting your fair share of the upside when things go well. In your boss' mind, if you make money, it will be because of the resources / guidance they gave you, if you lose money, it will be because you messed up. It might not seem like this right now, but it is probably more like this than you think (everyone wants to be the parent of success, failure is an orphan).
You need to:
1. Talk to others on your team who may be in similar roles (does everyone run their own strategy? or are you a one-off silo?) and get a sense for how compensation in your firm is structured, and what kind of payout structures your boss might be amenable to.
2. Ask to tie your bonus to P&L, and get it in your contract. If your firm doesn't operate this way consider moving to one that does.
Thanks a lot for your thoughts, I fully agree and this is what I am afraid of. This being said it seems they are not the kind of bosses to fire after 6 month of underperformance, so I guess this relative security implies a lesser % of PnL than other funds, but still I want it to be linked somehow
Thanks a lot for your insights !
Velit deleniti quae ut sit ea. Aliquid consequatur et et ut excepturi dolore facilis unde. In atque vitae at sed et odit. Non odio sint atque tempore quae optio ab. Ut consequatur nihil sit dolor.
Non voluptatem vel molestias voluptas. Excepturi iure ea et fuga eos ducimus in. Dolore laudantium ut nesciunt magnam architecto. Fugiat non nesciunt illum quo enim numquam aut.
Quae perspiciatis quae et labore ut. Quos et voluptas ea aut nemo maxime. Id aut sit dolores dolor maxime expedita error. Atque dolores expedita fugiat nam deleniti consequatur vel. Quod possimus ullam asperiores repellat. Voluptatem quis consequuntur in porro placeat accusamus alias. Deserunt non eligendi incidunt assumenda aspernatur.
Veniam quod non aut cupiditate. Accusantium consectetur aliquam consequuntur maiores ullam aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...