Hedge fund analysts - Vault (2024)

FAQs

What is the average bonus for a hedge fund analyst? ›

Hedge fund salaries vary a lot based on the fund size, type, strategy, annual performance, and other factors. The most likely range for total compensation at the Analyst level is $200K to $600K USD.

Hedge funds employ some of the best-paid business professionals anywhere, but landing your first job in the industry is no cakewalk. Building a hedge fund career takes determination, networking stamina, and a fierce competitive streak. Here are some steps to help get you to that interview and then land that job.

It's extremely difficult to break into hedge funds, and once you're in, the job is stressful and requires long hours and sacrifices.

The salaries look something like this: Junior analyst: $100K approx, split more or less evenly between a base salary and a bonus. Hedge fund analyst: $150K-$200K, with bonuses typically bringing the salary above $500K in a good year. Senior analyst: $1 million approximately, with most of this being the bonus.

While ZipRecruiter is seeing annual salaries as high as $277,500 and as low as $43,500, the majority of Vice President Of Hedge Funds salaries currently range between $115,000 (25th percentile) to $190,000 (75th percentile) with top earners (90th percentile) making $244,500 annually across the United States.

Hedge fund analysts typically work between 60 and 70 hours a week. Working on the weekend is not common but it certainly does happen from time to time.

Hedge fund analysts work market hours: getting into work around 7 a.m. and leaving around 6 p.m. This is quite a change from the 90-100 hour investment banking hours some are accustomed to. Typically, hedge fund analysts are not expected to work weekends or holidays.

Average Citadel Analyst yearly pay in the United States is approximately $119,642, which is 69% above the national average.

Skills to work for a hedge fund

A career in finance, economics and investing usually requires professionals to be mathematical, logical and personable.

What are the cons of working at a hedge fund? ›

Hedge fund work is more specialized than private equity or investment banking, so you have less mobility. The hours don't necessarily change much at each level, and in some ways, PMs have the most stressful jobs of anyone.

While working in equity research or in investment banking is typically the clearest path to working at a hedge fund, it is not impossible to start working at a hedge fund right after undergrad. It will however, take a great deal of work to overcome to highly competitive nature of recruiting.

D & C personalities dominate hedge funds. Is are wonderful idea generators, but often get shaken out over the life of an investment as the market moves. S types tend to get runover in the hedge fund world.

Why Do Hedge Fund Managers Earn So Much? Hedge fund managers' earnings are usually based on management fees and a percentage of the profits they earn, known as a performance fee. The more assets they have under management, and the higher the profits they earn for their fund, the more income they make.

There's no question that it matters in many industries outside of IB, such as portfolio management. If you go into this field, you'll probably complete several levels of the CFA at some point. Some equity research teams and hedge funds will also be impressed if you've passed it while working long hours.

End-of-Year Bonus: You earn this after your first full year of work. Analyst bonuses are almost always 100% cash, but a percentage will shift to stock and deferred compensation as you move up.

Those making between $500,000 and $1 million can expect to see an average bonus of approximately $193,200. And, those making between $100,000 and $300,000 are making somewhere between $23,700 and $104,300 in bonus pay, on average.

Analysts start in the summer after completing undergrad, joining full-time in the middle of the year. Traditionally investment banking analysts get their first-year bonus a full 12 months after arriving and don't switch to calendar year bonuses until they are promoted to associate (“a to a”).

To reduce the risk associated with joining, most hedge funds offer a minimum guaranteed bonus for the first year. It's worth noting that this is just the minimum, and it's still possible to secure a higher bonus in year 1. One of the most common questions we receive is “what will happen to my bonus after year 1”.