PNL at Prop Shops and Quant Funds
Do traders/researchers at quant funds get a %PNL at prop shops such as Jane Street or at hedge funds such as Citadel? Any insight would be appreciated, as well as insight on HFT shops like Hudson River.
It differs across shops. I don't work on the securities side at Citadel so unfortunately I can't speak on that, but I did work for another large Chicago prop shop several years ago. At my old shop desk heads would get a percentage of P&L (above some hurdle), so say 25% on P&L of the desk above 2 MM or something like that (obviously both of those numbers are dependent on desk and perceived ability/value), while lower level traders' compensation was more opaque. At a place like Optiver, however, traders are paid based on the overall P&L of the firm, and it is my understanding that every level knows how many 'marbles' they will get (within a relatively small range), with the value of the marbles determined by firm P&L. Basically, the answer is 'it depends'.
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