2021/2022 Hedge Fund Comp
I saw an older thread on mid-year 2021 comp that seems to have died. Wonder where people are coming out on comp this year.
Strategy
YOE in HF
YOE in IB/PE
Base + Bonus and bonus structure
Fund performance
Edited: moving my stats to comments and setting up a structure up top
Event driven, 2-3yrs, TC $600k, Ok returns
Is this 3rd year post-MBA? Equities or Credit?
Did you do 4 yrs IBPE or just 2 yrs of one or the other?
Are things slow / can you ‘take it easier’ during times like this (slow for RX / cheap debt etc)
Just IB
No downtime
'Ok returns' means beating the benchmarks in 2021? Hurdle? AUM?
Hey buddy, we're building events driven systems offshore would you mind if we could have a chat? Lmk.
Thanks
Could we also include years of experience out of college?
YOE: 4, 2 of which were buyside at this firm
Strategy: Macro/RV
TC: 475k
Firm had an okay but not great year.
Could I DM you? My main career goal is to work for a macro hedge fund and I was wondering if I could ask a few questions about it?
Swear you’re not even in college yet
Make this a separate thread guys. Absolutely no one cares about entry level macro HF recruiting in England. No one, at least on this thread. This thread was made to compile HF comp data points, and it's a helpful thread for A. people who work in the HF space, B. people who plan on joining / recruiting for it. A high school kid asking basic macro / s&t recruiting questions that can be found anywhere on the internet and subsequently sparking 23 replies detracts from the thread. If you are struggling that much, gee maybe just make a new thread...?
Bump
Dist/ss
Couple yrs IB then HF (edited to keep vague)
TC: ~$650k
Fund Performance: upper half
3 YOE, 1 in IB, 2 in L/S, in risk taking seat. TC: 475k cash. Avg/decent year.
risk taking in 3 yrs?
Guy above me got cut. PM let me step up in my 2nd year. In a pod structure.
2nd year analyst out of college (first year was stub)
equity L/S, high AUM per head
$2.4m all in, was $500k for stub
90% this is cap. 10% congrats on the great year.
what were returns?
dude its cap this guy works in PE + cmon 500k stub lol
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how many years of experience? also guessing your fund had a breakout year?
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congrats on a great year. how are you hitting these #s without a lot of distressed in the world (based on almost every HF-related headline i've read)?
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Sounds like an Elliott / DK type of place I guess?
Eliott and DK are not lean at all. Both have 100+ investment professionals
probably luxor / hg vora / redwood type place?
12+ yrs (keeping it vague)
mediocre/a little better than bad performance
~$1mm cash, $1.5mm deferred
Just so ppl don’t ask same questions, are the 500k base guy from the macro fund on the DK thread?
Yes, same person, so high base, junior partner. Let’s go with over 12 yrs of experience as a bit more specific.
YOE in IB: 2
MBA
YOE on buyside: 11 at same LO; in a risk-taking seat w/ no P&L attribution
TC: 950k
Strategy: Value equities
Mediocre performance, worse than prior years
You did ib post mba then LO AM?
No. Edited for clarity
how big/lean is your fund, ballpark? would you say 1mm is base-case comp in a mediocre year after 7+ years at the same shop, with upside case comp being multiples of that?
Lean-ish, I think. Edited my original post to say I am not in a risk-taking seat. Base-case comp is a pretty narrow range within a few hundred k. There is no upside case where comp is >2mm.
gotcha. so guessing in order to see upside >2mm as an analyst, you need to be good performer at a top l/s fund?
Maybe. I don't have a good sense for comparable LO seats, but I think upside can be that large at many LOs. I've never felt a non-monetary need to test the market, but I'm 99% sure I've been materially underpaid for the past half-decade relative to other L/S and LO seats I could've pursued.
Why stick around then?
You think you’re underpaid for pulling $1m in a non risk taking seat? How do you even stay so long without taking on any risk.
I have stayed so long in this seat precisely because I know things like... there's no upside to me in providing that answer to the competition.
Snark aside, one can still have 'attributable P&L' without managing a sleeve. Taking it a step further, it'd be efficient to pay someone less than their attributable P&L is worth to you.
We’re not you’re competition we’re a decade younger than you, just trying to get advice from someone senior to us
This is a public forum. You’re not the only one reading it.
Sincerely,
The Competition
If this is true seems like a huge outlier … sr. LO seats tend to be 500k-1MM. 1MM+ for all-stars. 950K seat WITHOUT risk sounds like the best risk adjusted comp of all time. Unless he's defining risk differently than I am (risk=PM? Sr. Analyst seats should be considered risk-taking positions..).
TC 320 120 + 200. Decent/average-ish year. 3 years on buyside. I see everyone else is doing much better.
I think you are more normal range, there is massive selection bias here where people with good/ great comp post on the thread, but those with average comp generally do not.
For eg. probably 30-40% of analysts at MMs every year get 0 bonus because the pod doesn't make money so there is no bonus pool.. but when did you last see someone post that they got 0 bonus here... I never saw it.
I had a great TC year but will withhold the details in the interest of eliminating this bias ;>
I got a 0 bonus one year. There I've done it.
Distressed Credit + Event Equities
2Y RX Elite Boutique + 4Y on job
$975 all-in cash for 2021
Performance was above median, AUM > $5
Curious was this your best year comp wise? Also does your shop run lean (> 500mm per IP)?
When you say distressed what type of distressed do you focus on?
Is it more top of the capital structure stuff or fulcrum type securities?
We do everything from credit perspective. Doing more equities than historically given smaller opportunity set in credit atm.
Yes was highest so far in my career, last year was closer to 700k. If I become a proper senior analyst, I think the people in those roles at my firm (early to mid 30's) are closer 2-3mm (maybe 4 this year given performance).
$700, equity L/S at SM with <$5b AUM. 6 years total experience, all on buyside.
fund performed ok. not interested in giving too many details on comp structure, but basically have about a couple points of carry
How lean is your fund? Also was this your best comp year?
10-12 IPs. best comp year, but only bc I have more carry than last year. so if we were up 20%, comp would have been 7 figures. more about eating what you kill
Can I DM you? In similar boat and curious to chat about carry points
will share in public. if you perform well and get into the carry pool, you should expect probably 3-5 percent of the fund's carry pool for a partner type role. if you are in model with direct attribution/risk, you might get low/mid single digits percentage of the p&l, which is roughly 20% of the incentive fees on the p&l you generate (if you get 4%, then 4% / 20% = 20%)
however, while that's market, you are also at the mercy of your PM's generosity. usually they won't pay you more until they've already made a lot of money
YOE: 1.5, 1st calendar year was a stub.
Strategy: DC/SS
TC: 290k
Performance: Upper half
Strategy: LO
YOE in HF: 1
YOE in IB/PE: 2
Base + Bonus and bonus structure: $770,000 base + 8% of PnL (72bil inaugural fund), TC 2021 was ~$1.4bil
Fund performance: 27% YTD
Ok so I’m assuming you weren’t in tech this year for your portfolio allocation.
We run a smart beta allocation strategy on precious metals.
Pizz how much did you make this year
Random question, but why are people very wary of saying the company they work for when meeting them in person? I know I'm probably gonna get shit for asking this question, but I promise it's a genuine question
Because there’s no upside in doing so. Do you even HF?
I’m an mba IB associate with a finance background. I’ve realized that I hate banking and want to work for a HF. I’ve always loved the markets and know it’s the role I want long-term.
I know it’s not a normal transition post-mba but what can I do to make myself stand out and network into a fund?
first, you start by making a separate thread.
First 6 months out of undergrad, basically got paid to learn the strategy, so next year's comp should scale.
Base: 60k
Bonus: ~10k
Fund had a solid year.
Keep grinding bro, Ull get there 💪🏽
Equity or credit? AUM?
Equity LO, 1bn
Good on you for getting the seat but feel like you are massively underpaid no? Especially looking at base it's crazy low unless you're in a pretty low cost of living area.
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What size book and what was your return?
Total comp: $750k cash, $150k deferred
Bad but not negative year, but my coverage did ok
SM or MM?
YOE?
AUM / Headcount (ballpark)?
This thread not as active as last year’s thread.
First year HF, 4 YOE before this.
Equities SM, good fund size. $500 all in.
Not a good year for most HFs. Last year was easy, so not surprised everyone was willing to share then
5bn+? Also how did your fund perform?
What did you do prior?
Classic path to pe then hf. Yes easily 5bn+. Good performance year. Probably up MT.
You guys should check out the “Where Do You Live In NY And What Do You Pay In Rent As A Jr. / Sr. HF Analyst?” thread on HF forum. Everyone there seems to be balling in the 500k-1m range in their late twenties. That’s the sense I got at least.
A couple years in at a good fund, that should be where you’re coming out.
Thank you for good post.
How much do you guys negotiate comp, if at all? I fear I am drastically underpaid.
Revived $270k all in last year at an NYC credit fund. Was my 5th year (straight out of undergrad), not in a risk tasking position.
waiting on this year’s numbers.
What AUM? What kind of fee vehicle credit? That could be in line depending on those factors. It's hard to just compare as everyone wants to compare themselves to the next step up
$1.5-2bn aum sm. Fee structure is 1 and 20
Maybe not useful to you since I'm less experienced, but I'll just add in what I know from my network.
If you are at a run of the mill CLO manager or something like that and you aren't in the office 60+ hours a week, I'd say your pay is a little on the low side, but about in line with market.
$850k cash, $350k deferred. First full year as senior analyst and promoted to the equivalent of APM at my shop. Large multi strat fund.
Background: Three years banking, two private equity, MBA, three in niche industry roles in a sub vertical I’m now building out for my shop.
So how is your comp structured at your new position as APM/senior snalyst ? Do u get a percent of your own pnl? Bonus structures vary so much across the industry specially at senior levels that it would be nice to get some insight on in vs say bonus structures at the junior level where its more discretionary
Still working it out. But it’ll likely be discretionary cash comp which will be opaque but theoretically tied to performance for my names plus a carried interest model for the new fund I’ll share responsibility for (but won’t have full responsibility for). My fund typically does like to do % of PnL for anyone.
$100 million family office in the mid-west with 3 IPs.
1.5 YOE
250k
1.5 years out of undergrad? Seems like very good comp. what asset class do you focus on?
We focus on equities. For all those interested, comp last year was around 150K. I wouldn't want to risk being identified by my coworkers so wont divulge any further information.
What is your strategy? How is comp structured for the IPs in the firm? Performance for the year?
Any crazy comp stories? Those are usually the most fun even if rumors.
lol this thread is so depressing compared to all the banking threads. How times have changed.
Since it doesn't sound like people want to throw big comp declines out here, I'll happily start.
Strategy: L/S
Comp: $350k all-in - down by ~70% vs last year
YOE: 5 in HF
Fund Performance: Mediocre
How big is ur fund, also SM or MM? And how was performance last year? Guessing 5 YOE meaning no sell side / PE?
not going to go into too much detail on fund aside from saying performance 2020 was strong, 2021 essentially flat.
YOE only referring to time in HF. Did IB before.
If it helps, I heard the median macro PM last year was next to 0 or 0 bonus. Equities really depended on Nov - year end.
care to share your #s for 2021?
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