Discover your dream Career
For Recruiters

Why hedge funds still crush asset managers on pay

Both hedge funds and asset management firms hire a handful of graduates each year. Breaking into either sector requires excellent academics, multiple internships and a level of persistence that usually necessitates a restraining order. But if you want to target one part of the buy-side and are motivated by earning potential our advice to you is this - join a hedge fund. And, if you wish to specialise in a particular asset class, join an equity hedge fund.

Recent reports have suggested that bonuses are hedge funds have been tumbling. New research from recruiters Kea Consultants suggests that pay at hedge funds is still very, very good. Base salaries for recent entrants to both asset management firms and hedge funds are relatively similar - at £67.4k and £74k respectively after 2-4 years' experience. However, total compensation is £131.2k-£146.2k at an asset management firm at this level and £165-196k at an equity hedge fund. After this, the gap becomes a chasm.

As the charts below show, after 4-6 years' experience, analysts at equity hedge fund managers are hauling in £260-655k in total compensation, compared to a 'mere' £176-185k in asset management. After this, Kea Consultants' research doesn't allow for comparison, but it does show that equity hedge funds pay their senior analysts an average of £675-900k, compared to  £485-555k at a credit hedge fund.

Kea-assetmanagement

Kea-hedgefunds

Source: Kea Consultants

 

author-card-avatar
AUTHORPaul Clarke

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Latest Jobs
Selby Jennings
Risk Manager - Long/Short Equity
Selby Jennings
New York, United States
DTG Capital Markets
ML Quant - hedge fund
DTG Capital Markets
New York, United States
Selby Jennings
Corporate Development & Strategy Associate
Selby Jennings
Alpharetta, United States
Selby Jennings
Acquisitions Associate
Selby Jennings
Miami, United States
Selby Jennings
Acquisitions Associate
Selby Jennings
Atlanta, United States
BNY  Mellon
Vice President, Data Governance II
BNY Mellon
Pittsburgh, United States

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.