if i make for sake of argument $10mm for a fund that has a 2/20 fee structure how much of that should I get paid if i am a junior analyst that works under a senior analyst (e.g., there are 3 tiers in hierarchy)? suppose this a single manager fund.
how do the following factors affect the answer?
a) whether i earned return in 1 month vs. 12? (e.g., impact of annualized returns and not just $ returns)
b) whether i earned through taking more or less systematic risk (e.g., impact of whether i am net long or short etc.)
for sake of argument suppose you made $10mm in 1 month with only short positions and I owned all the ideas from start to finish and generally ran the position... what is "fair"? the way i think about it is 20% of $10mm is $2mm and if it actually is a high value position (e.g., took up no portfolio $, actually reduced systematic risk and was clearly skill because these are shorts) then you deserve a high % share relative to the PM. So in this case, I would assume the junior analyst should get at least 20% of the $2mm that in a very worst case (e.g., $400K bonus).
also i get it's up to the PM, but my question what is a "fair" amount? by "fair", I mean the number under which I should consider leaving because I am getting fckd.