Related Posts
Rising Star
Community Builder
Bowl Leader
Additional Posts in Finance
Simple life hacks that make a huge difference:
what is cross asset structuring?
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
I’m not sure many hedge funds actually have a dedicated Strategy/Product Development team. Maybe at the really large multi-managers like Citadel or Millennium you’d see an internal “strategy” group, but product development would be even rarer… hedge funds don’t really “sell products,” they sell returns. And that comes from having the best analysts, quants, and PMs in the business.
Most hedge funds are lean… primarily investment, risk, and operations. As for comp, bonus structures vary: some are tied to firm performance, some to portfolio growth, others are more target-based. For a mid-level VP, a bonus might fall in the 30–75% range, though it would likely be less generous for a cost-center role.
A good target is 25%. Happy hunting
In hedge funds, compensation varies widely based on the firm’s size, location, and the specific responsibilities of the role. For non-investing roles, particularly in Strategy/Product Development, salaries can be competitive as these positions play a key part in shaping the fund’s approach and product offerings.
For a Strategy/Product Development role, if the base salary is $200K, here’s what a typical bonus structure could look like:
• Base Salary: $200K is in line with a mid-level position, but for top firms in cities like NYC or London, base salaries for these roles can sometimes even push higher (e.g., $250K+).
• Bonus: In hedge funds, bonus targets usually range from 30% to 100% of the base salary, depending on individual performance, fund performance, and the firm’s structure.
So, for a $200K base:
• A reasonable bonus target might range from $60K to $200K.
• $100K+ could be a strong, achievable bonus if you’re performing well and the fund is doing well.
Bonus payouts can also be heavily influenced by the firm’s overall performance and your individual contribution. For larger funds, bonuses tend to be more tied to the performance of the fund, while smaller or boutique firms might offer a mix of discretionary bonuses and performance-based ones.
Key Factors:
• Firm Performance: Larger hedge funds, especially those with a high AUM (Assets Under Management), might offer bigger bonus pools.
• Role: Strategy/Product Development roles could have a more significant impact on fund performance (through product launches, strategic decisions) than back-office roles.
• Location: Base salaries in financial hubs like New York or London may lean toward the higher end of the spectrum.
So if you’re looking at a total compensation of around $200K base, with a bonus of $60K to $150K being fairly typical, your total comp could range from $260K to $350K.
Rising Star
20-25%. Most likely not going to be higher than that your first year.
It would be rare to see anything higher than 25% imo