I'm wondering how a typical PM at a long-only firm is compensated.
If it's typical at HF's to give a PM half (or a smaller portion) of the 2/20, then what is the structure at places like Fidelity, Wellington, BlackRock, where fee structures are different?
Does anyone have any knowledge of standard practice?
Well these are mostly relative return funds so it probably depends on how you do compared to the overall market / funds with similar strategies. the variable component of your salary is probably way smaller relative to your overall compensation compared to the compensation packages of HF PMs. just guessing tho
I very much doubt that many HFs give non-founder CEOs anything like half. Possibly 40% to be split with the analysts, if they're lucky.
I agree, but most firms are running multiple funds, so the CIO/CEO/Founder, would be collecting 1/2 of all PM's funds, plus all the fees on the money that they themselves are running. I agree though that 50% would be max - would assume anywhere between 35% and 50%
Also, I disagree with Lubyanka. The variable component will be 80% plus of salary for a PM. Might be paid for asset gathering as well as performance, or might just be based on performance. I know some major firms pay out based on a formula that includes 1, 3, and 5 year performance figures.
Different depending on each fund. Based on performance (typical arrangements are based on 1,3,5 year numbers) and AUM of the fund.
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