HF pay expectations

Hi guys, just wanted a poll on what can be expected for a analyst level candidate (1-3yrs out of UG) for a long short equity fund with AUM range from $100m to $200m. The fund averages 20-30% returns. Let me know if there's any other factors besides fund performance affecting the amount: base + bonus.

Do indicate the geographical location and currency of the amount stated.
Thanks in advance! Cheers.

 

That sounds pretty reasonable for a smaller fund if you don't have previous banking experience, though the best answer, unhelpful as it may be, is that it's too variable to say. If you're the only analyst helping the sole PM and will have a lot of responsibility more total comp (bonus-weighted) is reasonable. The fact is across industries junior people are price-takers in most situations, especially in finance right now, so the reasonable rate is whatever they offer unless you have something else on the table.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

Here's something interesting. Jed Cairo left his post MBA Associate gig at KKR to join some no name HF (Beacon Light Capital) as an Analyst. Now presumably, he was making ~ 400K over at KKR. I can't imagine leaving that unless he was offered something very very substantial. Any guesses as to what THAT might be?

-MBP
 
manbearpig:
Here's something interesting. Jed Cairo left his post MBA Associate gig at KKR to join some no name HF (Beacon Light Capital) as an Analyst. Now presumably, he was making ~ 400K over at KKR. I can't imagine leaving that unless he was offered something very very substantial. Any guesses as to what THAT might be?

Jed Cairo is a beast. One of the most impressive students to have come out of Wharton undergrad in recent memory.

 
Best Response
Brady4MVP:
manbearpig:
Here's something interesting. Jed Cairo left his post MBA Associate gig at KKR to join some no name HF (Beacon Light Capital) as an Analyst. Now presumably, he was making ~ 400K over at KKR. I can't imagine leaving that unless he was offered something very very substantial. Any guesses as to what THAT might be?

Jed Cairo is a beast. One of the most impressive students to have come out of Wharton undergrad in recent memory.

This is some funny stuff right here!! Whoever this Jed Cairo guy is he is getting a lot of love here on WSO...he should have trading cards with his GPA salary and bonus

 

There are a few things that could be at play here: * Looking at his resume on Linkedin tells me (in addition to making me feel inadequate) that he went straight from Wharton undergrad into Wharton MBA, so its not a given that he was earning what a traditional 2 years banking/2 years PE/MBA would be making, but let's assume he was.

  • The analyst title is a strange duck in the hedge fund world. One of the senior people where I work was previously a partner/equity owner in a large debt fund, but his functional title at that firm was still "analyst." It's possible that he will be entirely in charge of his own idea-generation and research and get a P&L associated with those ideas, which is a level of autonomy/responsibility that's out of reach for most PE associates. He could also be getting equity in the firm, which can have a huge impact in long-term earnings if the fund does well but is obviously unlikely at KKR.

  • "No-name" is relative. Beacon Light looks to have a substantial amount of guys from Atticus, which was well-known, and while I can't find an up-to-date AUM number, that matters for future fund raising, and the fund was featured in GS's emerging managers conference. If the firm had $500mm or so in AUM and he was brought in as part of a lean team target comp of $400k isn't out of the question. http://www.hfalert.com/headlines.php?hid=147375 http://www.hedgetracker.com/article/Paulson-PSQR-Capital-Beacon-Light-a…

  • PE has a reputation of being stuffier than hedge fund culture, especially at a place like KKR. Maybe he just wanted out! $400k is a lot of money, but so is $250k at age 25 and if you actually enjoy your life and wealth you might prefer the pay cut.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

Ok, im not trolling but I am in somewhat a similar position as Jed in some sense.

Not too sure about him but personally, a hedge fund provides an environment to start out from scratch instead of being in an institution which may have some restrictions whatsoever.

Point to note, Beacon light is not truly a start up. Full of former ex Atticus guys. And $400k is not sustainable.

So now, my original question was not answered lol.

 

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