Two Sigma paid $840k to hire 27 employees in London
Hedge fund Two Sigma is a strange beast for prospective quants. On the one hand, it's known for having a relaxed culture with ping pong, parties and... soldering. On the other, an ugly dispute between its two co-founders has come to the fore as of late, making that culture a lot less enticing. Across the pond in its London office, however, a more glaring issue might be the compensation.
Two Sigma's UK subsidiary, Two Sigma International Ltd, recently released its 2022 accounts via Companies House. The UK team saw moderate growth last year, adding six modellers, fourteen engineers and doubling its corporate employee count to fourteen. Engineers still make up the bulk of the UK team, but they've dropped from 68% of the total team to 63%.
Two Sigma's 2022 'wages and salaries' rose per head. The 84 employees at the hedge fund earned, on average, £285.7k ($348.6k), up from £264.5k in 2021. Multistrategy hedge funds like Millennium and Balyasny pay far, far more. ExodusPoint employees saw pay rise by an amount greater than Two Sigma's employees earned in total.
The most peculiar figure in Two Sigma's list of 2022 staff costs is under "recruitment costs." Two Sigma's London office spent $23.5k on recruitment in 2021, rising in 2022 to a massive $841.6k, well over 35x more. It doesn't make clear what this category covers; it presumably includes costs paid out to headhunters, but could also include signing bonuses.
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