An actual product like a hedge fund, mutual fund, (active) ETF, SMA*, etc. In your example above, I would consider the hedge fund PM still a PM because he works at a hedge fund and that’s his title. Discretion isn’t even necessary. Many funds are run with a “team” structure, and while the lead PM may technically have final say, they vote on stocks to include…so technically no one in that scenario has discretion.
But, I digress. The key, for me, is that they manage a product/vehicle that I can look up on Morningstar or eVestment. *An RIA that says he runs an SMA? Nope, unlikely. He’s probably just a stock jock doing advisory business.
tl;dr - If you manage money and your product has a cusip/ISIN, your a PM (unless you’re an analyst).
I’ll follow the money and title and seniority…so i’ll go with 10b aum. I would most likely be in this list for sure (link below) and probably partner level at my company whether that is Goldman or JPM or whatever.
Let’s breakdown the assumptions here. I will chime in on the $300M mutual fund manager.
Given the managed AUM is equal, it is no contest that the hedge fund and PE guys make more money than the guy at a mutual fund.
$300M hedge fund is managed by 5 or 6 people…My first fund out of undergrad (i was an analyst) was a sub 500M equity fund with 6 people. The PM made $1M a year on okay years. Analysts - there were two - made 300k all in. Controller made 200k and CFO/COO made $1M. All possible thanks to 1.5/15. It is illegal for mutual funds to take incentives so that is where the big portion of the pay cut comes from compared to that of hedge funds. Also the 1.5% is basically all eaten up the hedge fund…there is no split fees or commission to others or etc.
A friend of mine is a mutual fund manager at JPM Asset Mgmt. He co manages 2 mutual funds and manages 1 small cap fund as the lead PM. Most PMs at mutual funds manage more than 1 fund…He said he has never made 7 figures, yet
The mutual fund manager in charge of just one $300M fund probably takes home $250k but in reality he would be also managing other funds or co manage and make around 500k. PM for a mutual fund is basically a CEO ie. Senior member of the company. At JPM, you gotta be a managing director to manage a mutual fund.
The RIA managing $10B? no idea what the salary would be…My advisor at US Trust manages around $600M and it looks like he is doing very well. He has a nice 3 bedroom in Chelsea. You don’t buy $6M condo on sub $400k income
Yeah, I’m managing a small fund now, lemme tell ya, even at a lean mutual fund you don’t make anything like your typical hedge fund/PE shop. If it’s between 10b RIA and 300m mf i’m taking the 10bn any day of the week.
global infra it’s kinda boring but good practice I guess lol, tough business nowadays. Sometimes the business risk overweighs the desired portfolio strategy (hard to be a long-term investor when you get judged on monthly performance). It is what it is…
Only certain portion of the port, utilities, toll roads and stuff super boring but the TMT (ex telecom), industrial and material related stuff are more interesting for sure.
Quitted my job for L2. Hated my old job I guess. But it turned out worth it because I passed. Maybe we need to be a sharpe-ratio to see what the risk-adjusted return would be like…
now that i am in the PE world and the CFA dues are coming up…i may pass up on it this year and next year and the next…If i could i’ll sell the three letters at say $500 a year at perpetuity for 3%
You should first cover AAA business school MBA expenses, then CFA, then negative convenience yield measured in missed f…ck opportunities for all years spent on studying and thus if you start in 20s, before pension you’ll pay off all costs invested.
didn’t missed any opportunities by spending time on CFA…as I was working full time at an equity hedge fund after my undergrad. Didn’t go through the typical IB then HF route so I did the grunt work for the research people (2 people) for first year ie doing model updates, highlighting key notes etc. So this was great time to sit still and put in my hours and study. Plus all fees including Kaplan and NYSSA fees (for level 3) were covered by my employer for all levels of the exam. I have everything I gained from my CFA Program in my head or in other notes or already implemented into my work.
as for the EMBA tuition…employer sponsored and paid.
