In a previous post, InTheory explained the main differences between IB and Hedge Fund.But an important question remains: what are the differences between the salaries earned in IB and in HF, especially for traders or quants?If the salaries are so high in IB, why are there so many traders/quants who want to work for HF?Any personal experience is welcomed!

Generally, salary will go down when you move from the sell side (IB) to the buy side (fund), but there are exceptions.The major attraction for me on the buy side is that I'm actually generating research that is used to make investment decisions. On the sell side, you are simply trying to drive volume through the desks. The research may be used by a fund to make an investment, but the research is generally just used as a sweetner to entice people to make the trade through your firm. You really try to create name value and basically build your own franchise with alot of salesmanship required. On the buy side, you are trying to generate value for the fund.