Quant vs L/S HF Comp/Lifestyle/Social
How do these compare across quant, SM, MM, and the coveted tiger firms?
Very interested in L/S HF and just wanted to know how these compare since people outside the industry lump them together collectively under “HF”. I understand these jobs are fundamentally different but just wanted to understand the other components.
How do hours/work life, social, and comp all differ?
Based on the most helpful WSO content, here's a breakdown of how compensation, lifestyle, and social aspects compare across Quant, Single Manager (SM), Multi-Manager (MM), and Tiger-style Long/Short (L/S) Hedge Funds:
1. Compensation
2. Work-Life Balance
3. Social Environment
Summary
Each type of fund has its own trade-offs, so your choice should align with your career goals, risk tolerance, and personal preferences.
Sources: Compensation Structure At Quant VS Fundamental Funds, What I've Learned About Hedge Fund Structure and Compensation, Activist hedge funds: comp, hours, recruiting, Work-life balance and hedge fund interview prep questions from a soon to be PhD grad & single parent, Hedge Fund is Paradise
Mean entry level comp is generally higher for quants but after a few years it sort of equalizes and is very performance dependent for both groups. In terms of variance, HFT quants generally have the lowest variance in comp, followed by MFT/LFT quants, followed by L/S equity.
In terms of work culture, quant is usually very academic whereas L/S equity is more fratty. Hours are generally longer on the L/S side by about 10 hrs a week on average. L/S equity will involve a lot more networking/conferences/human interaction as part of the alpha generation process whereas quant is mostly insulated from that.
It’s generally easier to move around in L/S equity as there is lower tech and data overhead.
how would u say macro fits in there?
i would guess halfway between quant and l/s generally in terms of wlb/pay?
Macro has worst w/l balance and worst pay if not a PM
You are looking at different games here.
Quant: comp scales $500k out of college / $1mm mid level / $1-5mm PM. Wlb best but high churn
Sm tiger L/S: comp scales $300k entry / $500k mid level / $1-3mm senior analyst (no subPMs typically). Wlb good with low churn
Mm L/S: comp scales $300k entry / 300k-2mm mid level / base $150k-$20mm PM. Wlb ranges with highest churn
A few things
- The upper bound on the quant side is MUCH higher than both SM or even MM. It is higher than what any of us can imagine. You must not be familiar with the comp structure for senior people at JS/CS/HRT etc. Well into 8 figures if not higher.
- MM L/S ranges: Junior $175k - $1.5m. Mid-level $200k - $10m (I know people with the analyst title that have cleared $10m). PM $250k - $50m+
- SM L/S I have less visibility into, though I think the mid level ranges are more like $500k - 3m.
Must be harder to get to the top roles at quant firms though right? Like is it possible for people who aren’t cracked in olympiads?
Super competitive
The sky is basically the limit for any role that has true attribution (e.g., quant / MM L/S) and any ranges start becoming meaningless as pay will always just scale with your P&L. It's more relevant to talk about the median outcome which is substantially worse in MM L/S in my experience.
What about the median at quant vs SM HF
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