What does comp look like for top HFs?
Can someone provide some color on what comp might look like for analysts at the top SMs? I see certain individuals go straight from analyst programs at banks/PE firms to these seats and I'm hearing they make ~$1m TC - no shot that's true right? That means you can make 7 figures by 24 yrs old?? Type of funds I'm thinking of are the Farallons, D1s, Lone Pines, Vikings of the world. I assume the MM scene is a bit different where the bulk of the money would come in more senior roles bc of economics but feel free to correct me there too.
1mm per year for the first 2 years is standard i think at certain tiger cubs (d1/Tiger), but after that no clue. Prolly based on the PM's generosity + fund performance + # of IPs + your own personal performance.
damn that's crazy, when can you potentially hit eight figures a year then? 5+ years into it?
0 clue honestly. I think to even have the chance to do that u need 1) Pedigree (Top UG + Top IB + Top MF PE) 2) insane amounts of luck from interviewing to the fund u land 3) true passion for the markets and investing 4) luck again in picking
The best fund for u might be the worst for me bc we have to eat what we kill and i might just suck.
You can count the number of analysts in their 20s making 8 figures on your fingers and there will be more years with none of them hitting that than there are where any of them do. If it happens, it will typically happen once (I know a guy who achieved a $10m+ payout in 2020 with a monster long call near the absolute bottom) and then for the remainder of their analyst career they stay in the LSD-MSD range assuming they're absolute top performers. They are the 6 sigma outcomes and it's not something even they can plan for. It's pure luck of the draw in combination with an otherwise above average performance that just ends up going better than they could've reasonably expected or hoped.
Look for places with no ceiling or lots of capital those can get you to 10M year in 5 years. Viking Coatue Anomaly etc
This is so far off from from reality
Making $10m / yr at Anomaly. Oh, boy lol mych luck to you in your negotiations
Have to generate pnl but few places without discretionary cap.... the more time you spend in hf land you will realize get capped at 2M at the "good" seats you would highlight until partnership promotion which is political. If u are good and young (again the post asked for within 5 years) that is strictly the possible set of outcome
when I did my MBA at a school in Cambridge we actually did case studies about HF comp
care to elaborate on your findings?
no
More like $300-700k starting depending on how things go and caps at $2-3 million unless you are in a senior seat and have PnL attribution / equity stake.
Can confirm same for credit / event driven HFs. First/second years get paid at least 300+ as long as firm is not sub scale. Not many seats tho
For credit/event driven, is $300k only for people who did 2+2 before or also for those coming from 2 years of IB?
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