What is the typical profit sharing agreement for a trader or analyst at a hedge fund ( when there is such agreement) ? Say a trader is willing to take a comparatively small salary , how much can he ask as share of the profits ?
FoF will go to the ceiling on their perf fee. In those cases, 20% on your sub-account. More often, 15% of the gains on your book.
Global Macro/Currencies Prop Trader $ 5 billion hedge fund seeks Prop Trader. Build a book, can be $100s of millions. Trade directional, systematic, trend-following. Just trade with reasonable risk (max draw down 5-10%) and make 12-18% return. Prefer systematic, trend following expressed in futures, currencies, options. Compensation is $100-175k base + up to 20% of profits.
I once signed a HF contract with a small Investment Advisor with bonus starting at 20% of the 20% incentive profit with good performance i.e. hurdle rate based bonus rising upto 50% of the 20% incentive However, the money set aside/planned to e raised from existing clients, for the HF program was washed out by Oct 1998 correction. Battle was lost without any shots been fired.