I have been with my employer (~$12B AUM long-only shop), picking stocks as the #2 person behind the PM for the last 5 years. Our fund is ~$2.5B of the $12B overall AUM.
To be blunt, my stocks have kicked ass and my PM's stocks have sucked. We have a couple of newer analysts whose stocks have been neutral. On a net basis, our fund has slightly outperformed.
Given this information, I ask you, what is a FAIR number for my comp?
We only get salary and bonus, so no equity upside or anything like that.
Analyst pay at a Long only fund
In this particular example we will be examining the analyst pay. More specifically the pay of a top level analyst at a long only shop. Using the original posts specifications as guide we'll break down what the pay should look like.
- Fund size: 2.5 b
- Team size of 10 to 12
- Making 25 m and retaining 40% (10 m)
- Top man can expect between 20 and 25 percent
- 10 m x .25 = 2.5 m
- Top analyst in the team (#2 man) can expect between 5% and 7%
- 10 m x .07 = 700k
- 10 m x .05 = 500k
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