Salary: Hedge Fund vs Fund of Hedge Funds (FoF/FoHF)

For entry level and senior levels? I'm currently a summer intern at a FoHF ($6.3b AUM) with a HF arm ($1.5b) but I can't really ask the people around me what their comps are. The HF guys are a lot more flashy with how they spend money and cop a lot of "oh wow a Tesla this time? Got bored of your lambo?" kind of jokes from the FoF guys so to me it looks like HF > FoHF at partner level but maybe its just at this firm. Obviously not talking about a Larry Fink vs Ray Dalio level but in general, how do the salaries compare?

Comments (4)

Best Response
Jun 19, 2017 - 7:38am
HedgeHog, what's your opinion? Comment below:

well some quick math for context - FOF are doing business for about 50bps flat these days. Even if you were SUPER generous and said 1% (most FOF or similar business are probably south of 50bps to be honest) you're talking 40% of the revenue for the same AUM of a 1.5%/15% hedge fund in an 8% gross return year. At 50bps, it's 20% of the revenue. Some FOF are taking mandates at 15-25bps. Like most jobs in finance at an entry level the comp is probably fairly similar - the more senior and successful you become, the quicker you'll see the ceiling at a FOF - there is just not enough revenue to pay employees/partners big money (relative to HF) these days.

Apr 27, 2018 - 5:04pm
Laplander, what's your opinion? Comment below:

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