Hedge Fund Interview Course

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  • Analyst 1 in IB - Gen
Apr 19, 2021 - 12:27pm

It's only low at the out of undergrad level. Post-MBA is similar to banking ASO pay. And senior folks can hit 7 figs (more if you're a PM at a big AM house with a ton of active AUM to your name)

  • Intern in IB - Gen
Apr 16, 2021 - 1:43pm

Do you mind elaborating on how much the pay can increase over time? How much can you expect to make after 2-3 years once you become an associate and 4-6 years as a VP in equities as well as fixed income?

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  • Analyst 1 in AM - FI
Apr 20, 2021 - 11:45am

I see there is a lot of variety in these numbers, so I will try to narrow it down. Base salaries are pretty standard across all the large companies hiring straight from undergrad (BBs included). If you are a great candidate, you will probably just get a higher signing bonus.

Most asset managers have big offices in cities like Boston, Baltimore, Newport Beach, Princeton, etc. Most likely outcome is:

75k base, 10k signing (IB raises have pressured this up to 85k at many companies)

If you are at an asset manager in NYC or similar, then the most likely outcome is: 

85k base, 10k signing (bumped up to 95k at a few companies, but generally there is no pressure to raise comp so I don't think there will be sweeping changes)

In terms of bonuses, I'll let you in on a secret: nobody is paying a 100% bonus to their new hires unless they are working 80+ hours a week. Most likely outcome is:

40-60 hour weeks

20-60k bonus

It can also take a while for pay to ramp up. It might take you ~6 years before you finally get a really meaningful promotion (covering your own big names, having a junior to manage, etc.), and until then you will probably be stuck making under 200k. Worse, that promotion generally depends on someone leaving (in research at least; portfolio management is not as bad). Asset management is a REALLY back loaded career where tenure and experience is valued. It generally will take a while before your earnings match those in banking.

This information comes from my own job offers, and conversations with older employees and some alumni. I think most of this can be verified on glassdoor or the WSO database, especially for entry level roles. Of course, there are some small differences between companies. For instance, I think capital group tends to pay a higher base and lower bonus, with total comp being similar. Also, promotions and titles vary significantly, so it can be difficult to compare between organizations. Most common entry level titles are "investment analyst" or "research associate."

No idea what kind of crazy salaries and bonuses are getting posted above, but it sure isn't for fundamental research at wellington, Blackrock, GSAM, etc. And particularly to the guy making 220K as an AN2... buddy tell us what company because I want to submit my resume. Those are hedge fund numbers

Apr 20, 2021 - 5:29pm

hahaa this made me laugh a lot. I agree with everything you've said here, although i'm from London so the comp is obviously lower but still, love what I do so honestly comp isn't that big of a deal. Just out of curiosity do you think guys on Sales Teams or Specialist teams which are like a hybrid of sales and Investments earn more or less?

  • Analyst 1 in AM - FI
Apr 20, 2021 - 6:12pm

I applied for full-time roles after an IB internship, so I can certainly attest to the job being much more interesting. The slightly lower compensation should not dissuade anybody interested in investing.

Re your question: I'm not really sure what the sales side of things looks like. I am only a first year analyst and working remotely, so my network outside of investing roles is pretty limited.

However, I do know some people at my company in other client-facing roles like portfolio construction, and they have lower bonus potential than people in investing roles (20k was the number shared with me). They also work 40 hours a week, so it's sort of an average corporate lifestyle. No idea what the structure looks like as you progress.

Hopefully someone more experience can correct me.

  • Analyst 1 in Research - FI
Apr 21, 2021 - 8:36am

I think they might only come in with one promotion. In a company in a smaller city, that might mean 90k base, 30-60k bonus. In a bigger city, it probably will be around 100k base, 40-80k bonus. Generally, I think this is a slight pay cut from sell-side.

People who come in post MBA arrive with two promotions, and I think are around 110-150k base, 25-75k stub bonus. I have heard some people get massive signing bonuses ~75k, but I think smaller ones are more common. If you are at a top performing shop with long hours, this is when pay STARTS to catch up to IB.

  • Analyst 1 in IB - Gen
Apr 22, 2021 - 2:26pm

Yeah, it's super interesting how comp in both AM and SS R only really take off once you hit a substantive level. Usually it's like 5-6 YOE to get there too. As opposed to other high finance roles where you get more money earlier. 

Apr 22, 2021 - 1:06am

1st year Research Analyst here in fixed income, but I lateraled after spending almost 2 years in Commercial Banking covering the same sector.

Salary: $90k

No sign on bonus (kinda bs looking back at that tbh)

Bonus: expecting roughly $20k-$25k bonus after first year based on my understanding of incentive plan and talking to others at firm (+$500B AUM firm)

Seems to me like it depends on a number of factors like the funds you support and if you're an equity, fixed income, or multi asset analyst, if the firm is larger or leaner given AUM and your funds fee structures and whatnot. It seems like a long road to a PM slot, at least from my position, but plenty of upside still moving to a Senior Analyst role where base creeps up on $200k within 5-6 years and bonuses become north of 50% of base. Given the work-life-balance and how interesting the work is, I wouldn't give this up for anything.

  • Analyst 1 in AM - Equities
Nov 14, 2021 - 11:24am

Curious, can you provide some insight to Cali's COL? Im an incoming first year analyst and signed on for $70000 base and $7500 sign on, moving all the way across the country so just curious to hear your thoughts on rent, food, etc.

Jun 28, 2021 - 1:46am

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December 2021 Investment Banking

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