What HFs pay the most for juniors coming from 2+2?
What hedge funds pay the most for associates/juniors that are coming out of 2+2? I’m contemplating if it’s worth pursuing HF after MF PE. If I do, it would potentially only be with a 1-2 year time horizon, so I’m highly focused on maximizing short term earnings potential. Please just answer the question and assume I won’t be working at a HF in 2 years.
I’ve read mixed things on here about how some SMs pay juniors more than MMs, but also how you can get absolutely screwed at an SM by your analyst/PM/CIO/broader firm performance? I’ve also MMs have higher earnings potential a few years in, but is that true at the junior level?
I’m willing to take some risk for a potentially outsized payday. I.e., if SMs are capped at $700k but you could make $1.5M at a MM if you have a stellar year, I think I’d risk taking the MM. Also, I’ve read some things about guaranteed comp - is it true Coatue offers $1M guarantees for those coming from 2+2?
Any insights are greatly appreciated.
Based on the most helpful WSO content, here's what you need to know:
Compensation at Single Managers (SMs) vs. Multi-Managers (MMs):
Guaranteed Compensation:
Risk vs. Reward:
Key Takeaway:
Let me know if you'd like further clarification or insights!
Sources: Which Hedge Funds pay the best?, Q&A: Multi-strat HF Analyst, 7 Figure Hedge Fund Salary - Myth or Real?, https://www.wallstreetoasis.com/forum/private-equity/going-from-mm-investment-bank-to-mega-fund?customgpt=1, Multistrategy / distressed credit compensation
It's Coatue, tiger, lone pine and D1. About $750-1.2mm for after 2+2.
Any views on Elliott or any of the large cap activists?
Pershing's gotta be higher than the four above, right?
I work at one of these places and know friends’ comp at the others. This rumor has been around for a while but is not true.
Can you please share what funds and comp ranges? The whole “that’s a rumor but I won’t clarify what the real ranges are” isn’t super helpful
Cool I got an offer for one of these places and can confirm it is $1mm+.
To get a 7 fig MM payday you need to be running risk as an analyst, don’t know if that’s something you’re going to be doing as a 2nd year analyst, nvm 1st
lol at the prospect of making $1.5M at a pod after being a model monkey for 4 years out of undergrad. The prestige whoring has really gotten to your head, kid. You are worth very little to most HFs after 2+2 with 0.00000 days of ever covering public markets. There is no good answer for junior HF pay, because guess what, and this might shock you, HF pay is all about performance so you just don’t know until you finish a year on the job.
TBF A lot of these outdated, pedigreed funds operate like McKinsey so they need H/P 2+2 to justify their shit returns to retarded LPs.
OP is worried about comp when he should be worried about passing the airport test
Ah, the PE Associate has descended from his throne to toss the HF industry a year or two of his time.
Is it really necessary to do a 2+2 to land at shops like this? I really really really do not want to go into PE
It’s not necessary, no, and these shops also aren’t even good places to land anymore. A bunch of thirsty 20-year-olds on here barking up the wrong tree lol
What are some good shops to land at? I am so tuned out of the HF world but want to learn more. Feel like I see a lot of conflicting info on here
the reason you are getting these answers is because the question is misplaced. the "highest" comp goes to where do you perform the best. There is no free riding on a high base, and this isn't a notch on your belt to level up a career. and then they offer you principal after putting in your dues.
A better question might be "what are the places with the highest base comp, and still have enough retained earnings / not below high water mark to still pay me out a decent comp in an average to flat year, or they typically have to compete with PE candidates and so they try to balance out some career risk in jumping ship"
But you realize that is a stupid question also. The goal of joining a HF is to put your ideas into risk taking positions that generate upside, which can then accrue to you in some way. You probably know the whole SM / MMHF debate already, but if you join coatue and coast, you aren't cracking 1mn just because you worked in PE....
The answer is stupid because joining a scaled pod with a rockstar could mean you make multiple millions in a couple years, while joining coatue could mean you make 650k for a couple years. You cant maximize the "highest" because its based on performance and focusing on that "highest" initial offer is equally pointless, especially since you have zero track record so why would they offer you a ton?
TLDR: 150k-200k and ??? at most spots. Some big scaled SMs 250k and ??? Idk, how do you think the market is going to do in 2026?
Helpful, thank you. This is what I am trying to get at/understand and makes sense.
This is wrong. Coatue is not $650k but can land you $1mm for a few years as a junior and then $3-5mm as an analyst taking risk. Much better than pod.
Go work at Citadel, hear the comp whispers on your floor, and get back me…
That’s all.
There are people who have worked at Coatue for 4-6 years and not gotten paid 7 figures
There are people who have worked at Coatue for 2 years and gotten paid 8 figures
I know people who currently work there who fall into each camp. Depends on which senior person you work for and how much they like you. Diff partners value different things. Jamin will pay a young person who is talented and has good ideas. Thomas is much more whether he thinks your fun and if you spend your personal time hanging out with him.
Why did daniel leave?
How is the former possible? bad stockpicking so get lowballed on bonus?
The titles have changed a bit over the years, but essentially there's a big step up from what is now called "Analyst (entry level) -> "Sector Head" (considered in charge of a space). They won't force you out at the Analyst level if you grind, but you only get promoted to Sector Head if you fit into culture and prove you have a nose for making money. So some people hang around Analyst level for years hoping to get the promote because they're doing good research work which isnt enough to cut it there, and PL doesnt see a need to pay those people more than high 6 figures
Big cubs (Viking/Coatue/Lone Pine) on l/s equity side. You also have Appaloosa, Knighthead, Third Point types. Pershing is Pershing. Elliott underpays.
At SMs, you can proxy ability to pay with AUM/head math but it’s ultimately up to the generosity of your PM. Pods obviously have wider dispersion.
Super helpful thanks and aligned with what I’ve been hearing in calls:
Spoke with a HH for Elliot role and they quoted $350k-$700k which in my head felt light/not worth being at a sweatshop
Also spoke with someone on Coatue and was quoted a $800k-$1m guarantee range
Bring two numbers slightly closer and you’re there. Just get the jobs and compare for yourself.
Whose the recruiters for coatue and Elliott these days?
Do you mind sharing who the recruiter is for Elliott?
Loeb and tepper don't strike me as the generous type
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