• A new report gives us a glimpse at what some of the best hedge funds pay their top talent.
• Salaries run upward of $500,000.
• We share the data from Bridgewater, Two Sigma, Citadel, AQR, D. E. Shaw, and Point72.
For those gunning to be at the top of Wall Street, landing a job at a hedge fund is considered the clearest pathway to a six-figure salary. But getting there isn’t easy and young financial workers have a steep learning curve.
Want to know what the top hedge funds pay for their talent? Business Insider recently combed through applications for H-1B visas, which allow employers to temporarily hire foreign workers for special positions, to see salaries for workers between the fourth quarter of 2020 through the second quarter of 2021.
For engineers, associates, and researchers looking to make it at Bridgewater or Point72, here’s a glimpse at what the top hedge funds are paying talent.
Point72
Billionaire Steven Cohen may have his plate currently full with all the drama surrounding the New York Mets, which he bought in late 2020, but salaries at his moneymaker, Point72, can tease upward of $200,000.
A common role dubbed research analyst makes on average $127,640 in base salary, and at most, $176,666, according to the report.
Citadel
Entry-level associates at Citadel made on average $150,000 in base salary, according to the report, citing filings.
Higher up the work ladder, software engineers in the hedge fund business side make just a smidge over $170,000 annually, while quantitative researchers, a popular role at Citadel, make an average minimum salary around $188,000, maxing out at more than $200,000.
Two Sigma
The New York-based hedge fund, run by John Overdeck and David Siegel, was founded in 2001. They recruit from all over, especially with an emphasis on talent abroad. According to Business Insider, the most common roles that the company had were software engineers and quant researchers.
For software engineers, the pay is pretty strong: an average minimum salary of $186,500; quant researchers also do well, making $189,350 annually.
AQR
Founded by Cliff Asness in 1998, AQR Capital Management pays financial analysts about $125,000 in base salary.
For financial quantitative analysts at the associate level, their pay is slightly higher at $150,000.
VP-level systems software developers can earn over $190,000, and vice presidents in applications software development average around a little over $175,000, according to the report.
D.E. Shaw
Billionaire David Shaw founded the firm in 1988. The company, which has 1,700 employees, has an impressive staff that can give any company a run for its money in Jeopardy 83 PhDs, according to BI), and their pay is pretty good too.
Based on H-1B salary findings, here are the base salaries for a few positions:
- Financial analysts: $150,000
- Quantitative analyst: $187,500
- Systems software developers: $200,000
- Trader: $170,000
Bridgewater
The Westport, Conn.-based firm is considered an industry heavyweight. Bridgewater reportedly hires a ton of talent from overseas and compensation varies depending on the job focus.
“Investment associates” made around $120,000, according to the report. That number may give you some pause, but apparently, other salaries were twice as much as that.
Technology associates made anywhere between $110,000 to $146,000; software engineer: $141,000 to $425,000; senior software engineer: $138,000 to $222,000; tech lead: as much as $342,000.
Be a good boss to yourself
Is the Black Hole due to your resume?
What I read every day