Salary: Hedge Fund vs Fund of Hedge Funds (FoF/FoHF)

lasagna's picture
Rank: Monkey | 36

For entry level and senior levels? I'm currently a summer intern at a FoHF ($6.3b AUM) with a HF arm ($1.5b) but I can't really ask the people around me what their comps are. The HF guys are a lot more flashy with how they spend money and cop a lot of "oh wow a Tesla this time? Got bored of your lambo?" kind of jokes from the FoF guys so to me it looks like HF > FoHF at partner level but maybe its just at this firm. Obviously not talking about a Larry Fink vs Ray Dalio level but in general, how do the salaries compare?

Comments (4)

Jun 19, 2017

Bump, super curious as well.

Jun 19, 2017

well some quick math for context - FOF are doing business for about 50bps flat these days. Even if you were SUPER generous and said 1% (most FOF or similar business are probably south of 50bps to be honest) you're talking 40% of the revenue for the same AUM of a 1.5%/15% hedge fund in an 8% gross return year. At 50bps, it's 20% of the revenue. Some FOF are taking mandates at 15-25bps. Like most jobs in finance at an entry level the comp is probably fairly similar - the more senior and successful you become, the quicker you'll see the ceiling at a FOF - there is just not enough revenue to pay employees/partners big money (relative to HF) these days.

    • 1
Jun 19, 2017

Ah makes sense... Thanks mate

Apr 27, 2018