Hedge Fund Salaries

New adbV82
Oct 12, 2018 33 Comments

10 years tech experience in banking and financial services. What kind of compensation can I expect from hedge funds?

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TOP 33 Comments
  • New Php535
    I can give my data point.
    Masters + 1 YoE in tech (ML)
    Role: Quant Researcher in a Hedge Fund (Heavily Stats and ML focused)
    City: NY
    TC: (400k + bonus)/year (for first 1.5 years)
    After that, it is 200k+bonus (this TC is expected to be higher than the initial TC)
    Oct 12, 2018 26
    • Chase tjPE83
      Quant dev here. <200k 4 yoe. Sad. Company matters yo
      Oct 12, 2018
    • Bloomberg / Eng iVX372
      @Php535 what is the breakdown of your $400k first year comp?
      Oct 12, 2018
    • Amazon Dr. Savage
      $400K + bonus he said, so his base is $400K.

      Look I’m not straight up calling you a liar, but I don’t see anyone near that range for base at a top shop like Two Sigma. Most top out at $180K base + bonus.

      https://h1bdata.info/index.php?em=TWO+SIGMA&job=QUANTITATIVE+RESEARCHER&city=&year=2018
      Oct 12, 2018
    • New Php535
      The 400K is split into 200k base and 200k “guaranteed bonus” for first 1 or 2 years. This is typical in many funds. After the first year, the base remains, but the guaranteed bonus vanishes. Everything is performance based by then. The h1b info site has only the base and not the guaranteed bonus part.
      Oct 12, 2018
    • Bloomberg / Eng iVX372
      Why would they give you a guaranteed bonus only for the first 2 years, when you're generating the least revenue?
      Oct 13, 2018
    • The initial guaranteed bonus is given because they understand that one cannot generate big profits in their first years. It is meant as a stepping stone, to fill the gap until you can stand on your own performance bonus.
      Oct 13, 2018
    • Lazard fin/tech
      Tbh, you should have clarified the guaranteed bonus bit.. 400 is way above market for base
      Oct 13, 2018
    • Amazon Dr. Savage
      Yeah, I think we were all thinking a 400K base, so this breakdown is more credible.

      What specifically in ML do you specialize in? Is it a specific algorithm (I.e. neural nets) or strategy (i.e. pairs)?
      Oct 13, 2018
    • Snapchat Lollerine
      I have a friend who interviewed around hedge funds, and I can also say that his numbers are achievable (but don’t go in expecting this to be the norm). The bonus can vary wildly later on, with some years making 500k or more. But again, it depends on the firm, YOUR performance, as well as the company’s performance (and ur manager I guess?).

      If your trading algo makes the company 10 million, you do get deserve to get some of that. But think about it this way - you’d never risk running your own trading algorithm yourself, so the hedge fund is there just as a way to mitigate ur risk, but also take in 95% of the reward as well.

      Not sure about work life balance though - maybe it’s good, maybe they over work you. In either case, I don’t think startup tech (which has potential to pay millions in an exit) nor hedge fund are meant for the long term. I doubt anyone can sustain 20 years of that 60-70hr/week work lifestyle.

      PS. I don’t understand why we people in tech think we have the highest pays. You have to realize that even ramen shop owners can make 1 million a year with just one successful ramen shop. Private equity/investment banking can make bank and by far surpass the tech worker at google. But it’s just a very different environment. The reason you work in the bay has two distinct advantages: join something like a big pre-IPO unicorn and guarantee 500k+ RSU over 4 years while working a stable 9-5 life, OR try to win a lottery jackpot. I know of people in VC and also crypto folks and other people who joined a successful startup early on who have made so many millions/billions that they can buy private jets. I doubt that’s achievable in any other field. However, those are also the rare exceptions in tech.
      Oct 14, 2018
    • Amazon Dr. Savage
      I didn’t doubt the overall number as much as the 400K base, which was corrected. I think we’re all on the same page now.
      Oct 15, 2018
  • Lazard fin/tech
    QR/QT/PM: sky's the limit
    QD/SWE: limit is about similar track as BigTech maybe with some additional delta depending on firm
    Oct 13, 2018 0
  • New adbV82
    OP
    The role I’m looking at is desk quant developer. I’m not surprised with the figures quoted. Any data on dinosaurs like me with 10y exp?
    Oct 12, 2018 1
    • Chase tjPE83
      From my experience quant is a dead end job unless you have a phd or you are a genius. I wish i could work at f/g
      Oct 12, 2018
  • Spotify cjwn
    What role? Quants make a ton. Others not so much. I’d guesstimate 200-300k otherwise
    Oct 12, 2018 0
  • Google shridar
    QR comp higher than SWE
    Oct 12, 2018 0
  • New adbV82
    OP
    Should have added that I am targeting New York City.
    Oct 12, 2018 0

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