Hey team. Transitioning out of CRE and happy to be interviewing for a trading seat at a SM HF with $500AUM. No comp guidance has been given. Any idea on what I can expect for salary and bonus? MCOL city.
Thanks monks
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Hey there! Transitioning into a trading seat at a small to mid-sized hedge fund (SM HF) with $500 million AUM in a medium cost of living (MCOL) city is an exciting move. While specific compensation can vary widely based on the fund's performance, your experience, and the fund's compensation structure, I can give you a general idea based on the most helpful WSO content.
For hedge funds, especially in a trading role, compensation typically consists of a base salary and a performance-based bonus. The size of the fund and its location (in your case, a MCOL city) can influence these figures.
Base Salary: For a hedge fund of this size, base salaries can vary. However, for a trading position, you might expect something in the range of $100,000 to $150,000 as a base. This is a broad estimate and can be influenced by your experience and the fund's pay structure.
Bonus: This is where it gets more variable. Bonuses in the hedge fund world are heavily performance-based. For a fund with $500 million AUM, if you're directly contributing to profitable trades, your bonus could be a significant portion of your total compensation. It's not uncommon for bonuses to match or exceed the base salary, depending on the fund's overall performance and your contribution to it. However, given the fund's size and location, the bonus might be more conservative compared to larger funds in high-cost living areas.
Remember, these are broad estimates. The best approach is to perform well during your interviews and, once you're in the final stages, try to get a sense of the compensation package directly from the fund. It's also worth considering the role's growth potential and the experience you'll gain, which can be invaluable in the long run.
Good luck with your interviews! Keep us posted on how it goes.
Sources: 7 Figure Hedge Fund Salary - Myth or Real?, base/bonus 1st year analyst at HF, Wanna Jump Straight to the Buy Side?, What I've Learned About Hedge Fund Structure and Compensation, Which Hedge Funds pay the best?
Bumperoni
Bumpington
He ain’t getting shit if they have $500 in AUM. The monthly electricity bill alone will eat up a years worth of management fees.
I got a chuckle out of this.
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