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

Comments (168)

  • Intern in IB - Cov
Dec 19, 2021 - 11:53pm

Is this 3rd year post-MBA? Equities or Credit?

  • Analyst 2 in PE - LBOs
Dec 20, 2021 - 12:03am

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)

  • Associate 1 in PE - LBOs
Dec 24, 2021 - 1:17am

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...?

  • Associate 1 in IB-M&A
Dec 20, 2021 - 11:31am

3 YOE, 1 in IB, 2 in L/S, in risk taking seat. TC: 475k cash. Avg/decent year.

  • Associate 1 in IB-M&A
Dec 21, 2021 - 12:45am

Guy above me got cut. PM let me step up in my 2nd year. In a pod structure.

  • Associate 2 in PE - LBOs
Dec 20, 2021 - 12:39pm

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 

  • Investment Analyst in HF - Event
Dec 20, 2021 - 3:19pm

Keeping it a bit vague...

  • Strategy: Mostly distressed
  • TC: ~1.5M cash, ~.5M deferred
  • Investment Analyst in RE - Comm
Dec 21, 2021 - 7:04pm

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)?

  • Analyst 2 in PE - LBOs
Dec 20, 2021 - 7:53pm

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?

  • Analyst 2 in PE - LBOs
Dec 20, 2021 - 8:01pm

gotcha. so guessing in order to see upside >2mm as an analyst, you need to be good performer at a top l/s fund?

  • Analyst 3+ in HF - EquityHedge
Dec 20, 2021 - 8:07pm

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.

  • Analyst 3+ in HF - EquityHedge
Dec 20, 2021 - 8:17pm

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.  

  • Intern in HF - Other
Dec 20, 2021 - 8:29pm

We're not you're competition we're a decade younger than you, just trying to get advice from someone senior to us

  • Research Analyst in ER
Dec 22, 2021 - 6:30pm

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..). 

Most Helpful
Dec 21, 2021 - 6:13am

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.

  • Research Associate in HF - Event
Dec 21, 2021 - 10:35am

Distressed Credit + Event Equities

2Y RX Elite Boutique + 4Y on job

$975 all-in cash for 2021

Performance was above median, AUM > $5

Dec 21, 2021 - 12:54pm

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?

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  • Research Associate in HF - Event
Dec 21, 2021 - 1:30pm

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).

  • Investment Analyst in HF - EquityHedge
Dec 21, 2021 - 4:29pm

$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

  • Investment Analyst in HF - EquityHedge
Dec 22, 2021 - 12:50pm

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

  • Prospect in S&T - Other
Dec 22, 2021 - 6:55pm

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

  • Associate 1 in IB-M&A
Dec 22, 2021 - 9:16pm

Because there's no upside in doing so. Do you even HF? 

  • Associate 1 in IB - Cov
Dec 23, 2021 - 10:54am

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?

  • Analyst 1 in HF - EquityHedge
Dec 23, 2021 - 3:48pm

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.

Jan 9, 2022 - 5:37am

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.

  • Investment Analyst in HF - EquityHedge
Dec 26, 2021 - 2:17pm

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. 

  • Investment Analyst in HF - EquityHedge
Dec 26, 2021 - 2:58pm

Classic path to pe then hf. Yes easily 5bn+. Good performance year. Probably up MT. 

  • Associate 1 in IB-M&A
Dec 26, 2021 - 10:23pm

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.

  • Research Associate in HF - Other
Dec 29, 2021 - 10:57am

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.  

  • Research Associate in HF - Event
Dec 29, 2021 - 11:03am

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

  • Analyst 1 in Research - FI
Jan 6, 2022 - 8:45pm

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.

Jan 10, 2022 - 7:51am

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 

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  • Assistant PM in HF - Other
Jan 10, 2022 - 10:57am

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. 

  • Associate 1 in IB - Cov
Jan 18, 2022 - 2:23pm

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  • Analyst 2 in HF - EquityHedge
Jan 18, 2022 - 3:08pm

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Total Avg Compensation

January 2022 Hedge Fund

  • Portfolio Manager (8) $1,718
  • Vice President (20) $488
  • Director/MD (11) $434
  • NA (5) $306
  • 3rd+ Year Associate (21) $288
  • Manager (4) $282
  • Engineer/Quant (54) $252
  • 2nd Year Associate (28) $241
  • 1st Year Associate (67) $189
  • Analysts (201) $166
  • Intern/Summer Associate (17) $122
  • Junior Trader (5) $102
  • Intern/Summer Analyst (219) $83