Top earners at a typical hedge fund: traders?
Who else could come close to taking home $100m in a year in your early 30s? Maybe if a hedge fund has a buyout arm those guys could make some decent money, but does it still even compare to the money traders are making?
traders versus who? At a hedge fund, the PMs will be the top earners, they are not necessarily traders. PMs can be either traders or research oriented, at fundamental shops they will be very research oriented (process trades through a hired trader) and at quant/some FI/some equity shops the PMs will actually be traders
Thanks. I know it was a broad question, but this is the basic explanation I was looking for.
At a most hedge funds I know of, the top earners are the guys who generate the most profitable investment strategies (duh, right?). A PM at a small to mid size hedge fund making a $100 million is about as common as someone getting struck by lightening on a sunny day.
As a side note, working for a smaller shop I've noticed that it was extremely hard for the fund to retain anyone that broke the 8 figure mark. All would move on to start their own shops. The more senior guys were also very reluctant on shelling out those huge performance bonuses to the rookie hot shots. Always caused a lot of controversy.
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