Why do some hedge funds have so many employees?
Hi everyone!
I recently googled how many employees Point72 has and was a bit startled: they have $22b AUM and 1,500 employees (of course, not all of them are HF analysts).
However, I remembered that Wellington Management, a traditional investment management firm with $1 trillion, has 2,200 employees.
Of course, the premises and the clienteles of the two are very different and Wellington’s AUM is much less actively managed. But how come that 1,500 employees at Point72 manage 2.2% of what the 2,200 employees at Wellington manage AND, on average, probably get paid much more. Is there anything that I’m missing?
You said it yourself: "Of course, the premises and the clienteles of the two are very different and Wellington's AUM is much less actively managed."
Actively managed funds like Point72 charge somewhere around 2 and 20 (maybe a bit less these days), whereas a passive manager charges a tiny fraction of that. I mean just look at Vanguard, they may have 7 trillion AUM, but a lot of that money is in their ETF's where the average expense ratio is 0.1%.
"on average, probably get paid much more"... How do you know?
Point72 charges 2.85 + pass through (amounts to 25% perf fee) + 10-30 sliding performance fee based on their forum adv part 2. Literally is in their filings.
Their fees are effectively 3 and 40-55 depending on performance for the year.
echoing what this guy said. feels like no one posting on this forum is aware of pass through/what that means for some reason, despite all the fixation on comp and fund economics
But...but...I thought HFs only cared about 13F-HRs?!?! What is this "prospectus" you speak of? Or...13D/G, Blue Sky, N1, 40-APP, 40-NT, etc etc. Or their SEDAR equivalents, or HMT FCA equivalents, etc.
Wellington is 100% actively managed ..
Wellington isn’t a passive manager
Why do people assume all long-only AM shops are passive?
Fee structure, done.
Multi managers are also more highly leveraged so their aum numbers are somewhat misleading
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