Hedge Fund in London

Out of curiosity, what is recruiting like for HFs in the UK?

Can you recruit out of UG or do you need to work in sell-side ER first?

Are salaries as crazy as I expect...in the millions? shoutout billions

Does anyone know of anyone who works at a big HF? long only preferably.

Reply 1

anonuser99

The same as it is in the US.

Yes and no, and no and yes. It depends. Most single manager long/short HFs actually prefer IB to ER.

No.

Yes. There is no such thing as a long only HF.

Reply 2

tierny3

Original post by anonuser99

The same as it is in the US.

Yes and no, and no and yes. It depends. Most single manager long/short HFs actually prefer IB to ER.

No.

Yes. There is no such thing as a long only HF.

what is typical salary for associates/analysts/PMs then at somewhere like Citadel?

Ah so whats the setup like? I'd only be interested in working for a HF that doesnt short

Reply 3

leviticus.

Original post by tierny3

what is typical salary for associates/analysts/PMs then at somewhere like Citadel?

Ah so whats the setup like? I'd only be interested in working for a HF that doesnt short

Citadel is a quant and have their quant fund/prop shops arms which are slightly different. You're not gonna get into Citadel without a strong maths-based background. P sure a lot of compensation comes from bonuses as oppose to salaries in buyside shops but i could be wrong

Reply 4

anonuser99

Original post by leviticus.

This isn't true. Citadel has a sizeable fundamental research arm.

Reply 5

anonuser99

Original post by tierny3

what is typical salary for associates/analysts/PMs then at somewhere like Citadel?

Ah so whats the setup like? I'd only be interested in working for a HF that doesnt short

HF hierarchy terminology is a little different so analyst doesn't mean what you think it means. In AM/HFs, analyst just means anyone who has coverage/responsibility over some stocks. You can be a career analyst if you wanted to. One exception to this is BlackRock who uses typical IB hierarchy.

I don't know any numbers off the top of my head but salary isn't going to be meaningfully more than like an associate at IB. The money comes from the variable component.

Citadel works different to most hedge funds, they're a multimanager which means they're a fund made up of a bunch of little funds called pods. Same deal at millennium, point 72, balyasny, exoduspoint. Each pod is allowed to pretty much run its own business but they're paid, and financed, ultimately by the wider fund. Each pod has strict risk limits, if they break them, the pod is fired. That's how these funds work. Now that that's out of the way, how much you get paid greatly depends on the generosity of your PM, the funds your PM manages, how much contribution you made to P&L and overall P&L. And then if you blow up, you don't get anything (apart from your salary).
There are decent breakdowns on rough %s and realistic figures on WSO if you can find em cos I cba to look rn, but they are there. E.g. (and these are probably wrong) fund manages $500m, fund has 10% P&L in a year, citadel gives them 50% so that's $25m to distribute. Normally there's a PM and a senior analyst who'll take most of the cake. Maybe 90%. Then 10% can go to the junior so 2.5m depending on how nice the PM is. As I said, that's an example calculation, idk if the %s are right and there aren't many people at these funds with $500m AUM in their pod so these are kind of ridiculous numbers.

If you want to join a HF but have some moral high ground against shorting then you're **** out of luck because there's no such thing as a long-only HF. At least in equities. It would be stupid to make a HF just to be a long-only. If you want to do long-only, go into traditional AM lol. Saying that, many HFs have a pretty big long bias so it's not like they long and short equally.

fair enough

As the poster above said, if you don't like L/S funds, just try to join an asset management firm. I assume you do know what the hedging part of 'hedge fund' involves because this kinda rules out pretty much every HF based on what you've said.

I'm assuming you could probably do with doing some extra research on the industry because hardly any candidates can go straight from uni into a HF. Most have worked for a couple years in IB, I can say this because I've had past colleagues banging on about 2nd year exit opps for ages, was tiresome haha. Also the fact you went straight to talking about citadel was slightly amusing considering hedge fund activity this past year. So if you really want to join a hedge fund or the buyside generally, study maths or something and either apply straight to the few buyside grad roles there are or go into IB.

Quick Reply

Latest

Articles for you

What A-levels do you need to study business?

Can you get into university if you’re studying Btecs?

What is an LLM and how could it benefit your career?

University phone numbers and contact details for Ucas Clearing 2023

Hedge Fund in London

Quick Reply

Related discussions

Latest

Trending

Trending

Articles for you