Quick question on hedge fund comp - I’m sure it’s been discussed a lot but I couldn't really find specifics. I was reading some articles recently and it basically said some PMs at the HFs earn 15-25% of the profits they make.
So hypothetically speaking if a PM makes $100mm of the group, he gets paid $25mm. How much of that is split among the analysts working for him assuming there are say 3 analysts? Is it a certain % per analyst?
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I think it's usually purely discretionary. Not usually a pre-determined percentage. But I'm sure this varies.
Hopefully someone in the industry can confirm or correct me, but I'd have to imagine any percentage that high would be on the firm's take, or 20% of returns. So to take home $25MM @25% would require $500MM in returns.
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