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DevonFangs
Posts: 3004
Joined: November 9th, 2009, 1:49 pm

Total compensation for junior hedge fund quant

October 20th, 2014, 11:15 am

QuoteOriginally posted by: roundandroundI would like some information on this as well, please. Particularly, Winton, OxAM, and G-Research. Is it any different for PhD (CS) + ~2.5yrs of university experience (postdoc/research scientist)?Thanks in advance.I'm curious too, and I'm telling you this so I can subscribe to this topic.
 
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neuroguy
Posts: 408
Joined: February 22nd, 2011, 4:07 pm

Total compensation for junior hedge fund quant

October 22nd, 2014, 5:07 am

QuoteOriginally posted by: DevonFangsQuoteOriginally posted by: emacwhy?because I work in one of the allegedly top-tier-1-superawesome-OMG-IB and I know the only sign on fresh starters get is a kick in their buttClassic.
 
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DominicConnor
Posts: 11684
Joined: July 14th, 2002, 3:00 am

Total compensation for junior hedge fund quant

October 25th, 2014, 2:42 pm

The spread is so wide, that I'm not sure what utility there is in giving it, as in 40-90k base (mean 60) with first year bonus varying from zero to 40% mean 20The thing is that it doesn't matter directly, it's more than you've ever earned before and a small % of lifetime earnings (hopefully).The issue is whether you are being taken on as an "officer" or as a "footsoldier", some people use the term "working as a real quant" to mean "officer"By that I mean, no one is hired as a PhD, they are hired to do something and the nature of the work they are assigned varies according to the "rank" of the role.So some PhDs are given work that requires nothing academic they didn't know at 21 and the prospects are that this won't change much. This is a footsoldier role.Some get work that requires deeper skills, in other words, you may have a PhD, but that does not mean you have a PhD level job.So the price is a good indicator of whether you are being taken on as a 2nd Lieutenant or as a technical sergeant, or indeed cannon fodder.As a stupidly rough rule of thumb in London, if you are offered much less than 60k base you are at best a sergeant and more likely cannon fodder.One reason it is a rough rule is that different firms have different ideas about what an entry level quant-type person is worth and on top of that have different mixes of fixed and bonus pay.The higher the % of your pay that is bonus, the better, again on average, but in terms of the quality of work you will get and the money you will earn.Be clear that the dominant term in the value of this first job is what you will learn, I trust that in a Quant forum saying that the area under the curve is more important than the current rate, will not cause confusion.Be wary of the word "compensation".You might imagine that if a job didn't offer so much in long term value to you, that the pay would be higher.This is very rarely the case, at entry level the better the pay at a given firm the better the job and less strongly across the market this correlation persists.Sign on bonuses do exist, they took a battering in the hole we are now climbing out of and are a useful signal that you will be an officer. But their absence is not to be taken as you being used for data cleansing, "helping out in compliance", etc.
 
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roundandround
Posts: 66
Joined: November 18th, 2011, 8:19 pm

Total compensation for junior hedge fund quant

October 26th, 2014, 12:45 pm

Thank you very much Dominic. Certainly very helpful.
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