To all you freshmen HF comp fanatic losers...

Go grab your lotion & tissues, this is gonna be a good one! The highest paying HF seats are where there's the highest AUM to IP ratio. In other words, high AUM low people. It's no surprise that the giant Tiger cubs are the one's with the highest ratios, but I'm pretty sure Tiger Global is like damn near $3bn per IP. None of you guys will be working there, BUT...WAIT FOR IT...the analysts who do work there in a good year probably make what your net worth will be when your 50, but in a single year. Average person on this forum will probably be worth $4-5mm by the time they're 50 considering inflation, plus were talking the world of HiGh fInANcE...

From what I've seen, comp is proportional to AUM:IP. Probably $2-3mm for analysts for the sub 1bn-500mm ratio funds, and then less and less as the ratio decreases. Comments, questions, concerns? Hope that satisfied all the freshmen on here...NOW PLEASE STOP ASKING ABOUT COMP EVERYDAY

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Comments (29)

  • Investment Analyst in HF - EquityHedge
May 3, 2021 - 3:59pm

Also want to add, a lot of people over estimate the actual fees that most HFs get. When you factor in founder fees ect. very few funds that arent factor/beta neutral get 2 and 20.

Most large SMs that run net long really only get 1 and 15, some have hurdle rates too. Ppl should think abt that when looking at AUM/IP.

  • Anonymous Monkey's picture
  • Anonymous Monkey
  • Rank: Chimp
May 3, 2021 - 7:18pm

Maybe this question can be answered by googling the top 25 earning hedge fund managers of the year? I would think the top earners are the guys running the places who have like a few billion invested that they earn like 20% on in a year 

May 30, 2021 - 4:41pm

I hear you thanks. I would think anyone currently interested in being a hedge fund analyst is prob on track to be a hfm one day and/or the people who get hired to be HFA's are those who may want to be HFM's one day. I could be wrong

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Most Helpful
May 3, 2021 - 7:39pm

Alternatively, you choose to click on those threads knowing what they're about. Would be the same as if you clicked on the "rank BBs/EBs" threads or the linkedin posts thanking people for the opportunity to apply. At that point, if you click on it and get pissed, its because you're looking to get pissed on purpose. 

People like this are going to be around no matter what stage of your career you're in. Think about all the analysts in your class who were like "oh it'd be totally sick to work at x fund, the founder is such a legend of the industry" and the guy has no idea what this fund does. Think about all the Rx kids (and even MF guys) who exist to go to a distressed fund and then flame out after a year at Silver Point when they finally realize that these funds are not as badass as WSO makes them seem. At some point you just have to ignore and focus on yourself right. 

May 3, 2021 - 7:47pm

I mean shit, I know MDs who borderline fetishize their clients in private, when they're not even in front of them

"Yeah dude, these are guys are so sharp and just crazy smart" "Yeah dude, these guys are absolute animals"

Yeah dude, these animals have averaged negative returns over the last 5 years and haven't hired you in that period. 

  • Analyst 2 in HF - EquityHedge
May 4, 2021 - 4:32pm

First and foremost, to get paid you need to be in a seat where the founder/PM actually pay you. Plenty of them don't. 

Funniest
  • Associate 1 in IB-M&A
May 4, 2021 - 8:29pm

Indigenous Persons. It is a key ESG criterium for many LPs.

  • Intern in HF - Other
May 5, 2021 - 4:23pm

Currently starting out in the industry and am not nieve enough to think that I'll be making 7-8 figures in the next 5-10 years. I'm curious as to what a reasonable comp expectation would be for credit funds with $1-5 Bn AUM. 

My expectations are to be sub $200k for the first 1-3 years (potentially sub $100k in years 1 and 2), maybe be at $200-250 in years 4-5, and then anywhere from $250-500k for years 6-10. After 10 years I'd like to think I'd have a shot of pulling in more than $500k but am not sure whether even getting to $500k in comp is realistic for 40-50% of people in the industry.

Are these unreasonable assumptions? 

  • Analyst 1 in IB - Restr
May 7, 2021 - 5:14pm

How much do you think analysts at Melvin and D1 made last year? I made $200k big boy RX bucks :))

  • Anonymous Monkey's picture
  • Anonymous Monkey
  • Rank: Chimp
May 30, 2021 - 11:30am

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Jun 5, 2021 - 6:59pm

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