Hi wso
My PM said PMs typically make a deal with fund to "pay the fund back" if they make a net loss. I was pretty surprised.. I thought they were just fired?
And that he could make me pay him back if I make a loss..? Is that even legal??
Im not sure how much of that is true.
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Is it in your contract? I have never heard of this before and it seems like he is lying to you to low ball expectations on compensation. Typically this happens when the PM is concerned over his own mortality for various reasons.
The standard agreement is that you have to recoup losses the following year (if not already fired) after which you can start to accumulate pnl to pay yourself a bonus.
I would look elsewhere.
I would not have signed the contract if I read anything of this kind. Unfortunately I already joined.. I was 99% certain he was lying but wanted to double check.
Is it true that PMs need to "pay back the fund" if they make a net loss? I feel like that's a lie too
I’ve heard of clawbacks upon leaving the firm, but I’ve never heard of a clawback given a loss. If it’s not in your contract and he’s telling you this it is a bad place to be.
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