compensation for trader at start up. 100MM aum

Discussion in 'Professional Trading' started by SWScapital, Sep 8, 2008.

  1. Are there any recruiters or buy side traders hanging around?

    I need some information on the fly..see thread title.

    Been asked the question "what would it take to get you over here" And i`m a career sell sider so this buy side thing is all brand new.

    Thank you.
  2. Well, it all depends. Too many variables left unanswered. How many ways does the pie have to be split? Are you bringing significant intellectual capital to the fund? (trading systems) How much will you actually be responsible for? What is the fund fee structure? What are the start-up costs?

    As with any start-up operation, times can be "lean" in the beginning. Obviously you hope to do well and grow and gather more AUM.

    If you are trading your own systems-- I would look for 12-15% of your P&L in addition to a reasonable monthly salary (which may be treated as a draw).

    If you are merely an execution trader using their systems then you are probably looking at a salary/bonus situation. You have to be realistic as costs during that 1st year can be daunting especially if the fund doesn't perform as expected. Its doubtful that they will give you a guarantee-- although it doesn't hurt to ask.
  3. hilojack,

    Thanks for taking the time to reply.

    Its very tough to price something like this because of all you just said. On one hand I need it to be a no brainer to leave my current situation..and on the other hand the start up factor handcuffs early comp.

    No physical intellectual capital. The PM and I developed a rapport because of my price action skills. I will be running all the flow/the desk + learning the algos/executing the signals. They are up and running one fund. But have a couple more behind in legal process.

    my rough guestimate is 150 I punking myself or overvalued?

  4. yeah ur numbers seem about right. plenty of other issues to consider though. good luck.
  5. I fail to see why you think you're so special that you deserve 150k/year for a position that can be filled by hundreds, if not thousands potential candidates.

    If I was the PM, I would not pay over 6 figs salary for the position, considering that it is a start-up fund and the current job environment. Lots of buyside traders around looking for a job.

    You should be focusing on the bonus and the development & growth within the fund, not a salary that you can brag about to your friends & sleazy golddiggers at the bar.
  6. If you read the OPs post, THEY came to HIM. So he is well within his right to ask for whatever the F he wants. i don't think that his guestimate is out of whack considering what he would be giving up to go work at a start-up.

    Doesn't matter that there are alot of BS traders out there looking for work, they came to him. So don't hate, celebrate.
  7. 1 - you think I would come on a public board and disclose everything in the event someone in the know reads the post? The actual numbers and requirments have been tweeked to protect..well me.

    2 - This enviornment is tough, agreed. I am not greedy. But they know my background...they know where I am..and they know how much I am currently paid.

    3 - Of course a start up is very attractive from an entrepenurial point of view. But why for goodness sake would I risk my current high paying, secure job for one that can in theory blow out in a month? Leaving me high, dry and jobless. wife and kids would appreciate that. If they dont want to pay me what I am asking we can all take a pass and move on.

    Bars, bragging and sleazy golddiggers, huh? Please do not project.

  8. Thats the key.
  9. What are you, his nanny? Or do you just fancy him?
  10. Then ask for whatever you make now plus maybe 5%. This is not something you would need advice on, it's basic common sense. What does it matter what a trader at a start up makes if it's not in the territory of what you earn now?

    Did they hunt you down out of the blue? I bet not, your resume is with a recruiter, probably via Careerbuilder or Monster. Or maybe you got recommended via a friend.

    If the PM is that familiar with what you do, he knows how much you make. He does not need to ask you if he wants you that badly, he can just make that right offer.

    And I see the golddigger comment hit a nerve, lol. No projection here, not my taste.
    #10     Sep 8, 2008