Hedge Fund Compensation In Australia

Wondering what the comp is like at hedge funds in Australia. It’s obviously a very small industry and there doesn’t seem to be many people moving from IB into the industry (mostly equity research) so was wondering if lower comp compared to IB was the reason.

 

Realistically speaking there just aren’t a lot of seats open for roles that require IB skills. IBs are “good” at fundamental analysis, and there aren’t many investment roles focused on identifying big fundamental mispricings, especially at HFs. Plus the competition is fierce for these types of roles, you have a plethora of LO analysts and sell side research analysts competing for these jobs too, and it’s easy to see how an IB analyst would be the tertiary choice of the three for a public equities role.

Bet sizing and risk management are big components that IB analysts have zero experience with, and there’s a clear reason why many former sell siders get stopped out by risk and compliance when first making the jump to the HF landscape.

 

Thanks for the response and take your point. I am still interested in how comp at hedge funds compares to London/New York as the compensation in IB (adjusted for FX) is broadly in line, though understand that this might be difficult to get an answer from on this forum as it is primarily US/European based as well due to the highly variable compensation in the HF industry.

 

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