Can a family live on an AQR Capital Management salary?

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Can a family live on an AQR Capital Management salary?

It's hedge fund results season in London. Quant fund AQR Capital Management (Europe) LLP is the latest entity to release results for its U.K.-based operation. They show that AQR did quite a bit of hiring last year. They also suggest that pay was pretty steady on previous years - when AQR wasn't exactly known for being hugely lavish.

AQR Capital Management (Europe) ('AQR') hired 14 people in 2018 and increased its headcount by 45% in the process to 45 people. 39 of those 45 were 'operations' staff, the rest were in 'admin'.

The fund spent £9.5m paying everyone. This worked out at an average of £212k each, which was generous but not wildly so when you consider that Ken Griffin's electronic market maker Citadel Securities Europe awarded its people an average of $669k (£543k) each for the same period.

AQR's apparent parsimony may have provoked a historic enquiry on the site 'Econjobrumors' in which someone asks if AQR's salary in NYC is enough for a family to live on (and are promptly castigated by respondents). If you're thinking of asking the same thing in London, the answer is clearly 'yes', but you might want to call Griffin if you're a really, really big spender.

Turnover at AQR was £24m last year (up from £19m in 2017). Profits to be shared among members were £4.9m, down from £5.9m. AQR's founder, managing principal and chief investment officer may have to tighten his belt too. In tweets last month, Asness said he wasn't much enjoying this year, and didn't enjoy 2018 much either but that the previous eight years were fine.

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Photo by Janeris Marte on Unsplash

 

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