8 Comments
 

Based on the most helpful WSO content, here's what you need to know about compensation for management roles in hedge funds:

  1. Business Development and Investor Relations Associate:

    • Compensation can vary widely, especially in smaller funds. For example, a hedge fund in Connecticut with approximately 30 employees and $12bn AUM might have a unique compensation structure. Specific figures aren't provided, but discussing compensation directly with the founder is common practice.
  2. Head of Equities or Head of Certain Strategies:

    • Hedge Fund Manager (Manager): Has ultimate control over the fund and often starts as the portfolio manager. Compensation is typically very high, often including a significant portion of the fund's profits.
    • Portfolio Manager (PM): Makes decisions on portfolio inclusions and sizing. Compensation is also substantial, often including performance-based bonuses.
    • Sector Head: Manages a specific sector within the fund. Compensation can be high, especially if they also serve as portfolio managers.
  3. Bonus Structure:

    • Bonuses in hedge funds are typically discretionary and can form a significant part of the total compensation. They are often tied to the performance of the fund and the individual's contribution to that performance.

For more detailed insights, you can refer to the WSO thread titled "What I've Learned About Hedge Fund Structure and Compensation" https://www.wallstreetoasis.com/forum/hedge-fund/what-ive-learned-about…</a">here.

Sources: Compensation Structure at the mid-management level in Corporate Development / Strategy / Finance, What I&#039;ve Learned About Hedge Fund Structure and Compensation, What I&#039;ve Learned About Hedge Fund Structure and Compensation, AM vs HF: The Business of Our Business, 7 Figure Hedge Fund Salary - Myth or Real?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

BD -- bbg "senior BD professionals now commonly earn more than $1 million annually, with some execs making north of $5 million"

head of equities (someone that used to PM, so very different than BD): no idea. likely huge difference tier to tier (citadel vs jain vs walleye) and y/y, but i'd guess anywhere from $10-150+. a few recent data pts in bbg articles. very small n / waste of time to think about it (other than "it's a lot"). it's almost like being a cio

 

likely huge difference tier to tier (citadel vs jain vs walleye)

I would have guessed that Jain and Walleye are roughly the same tier, given similar size?

However, not exactly the same, given one of them had a great 2024 and has a 20-yr track record. On the other hand, Jain is probably more generous than Walleye.

Or do you mean "Citadel" vs. "Jain/Walleye"?

 

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