Bluecrest
https://www.bloomberg.com/news/articles/2023-02-0…
New arrivals at BlueCrest are usually given at least a year to acclimate and prove themselves. Once they’ve earned the boss’s trust, they can start taking bigger risks on their own.
Portfolio managers typically start with a capital allocation between $100 million and $1 billion, depending on their experience and strategy, according to people with knowledge of its inner workings.
They’re granted unusual amounts of freedom to design and execute wagers, pocketing up to 30% of their profits, one of the highest rates in the industry. Seventeen of the firm’s 110 teams generated more than $100 million last year.
But if their losses reach 5%, BlueCrest typically reins in their capital. Such declines can lead to dismissal.
Is BC the best platform to work at for established PMs? Can anyone confirm that they are actually giving 30% payouts? Because that would be significantly better than the 20% on offer at MLP, BAM, P72
Bump
interested in bluecrest lately as well
That article also said they almost went bust so it’s not like the job doesn’t have risk to it. 30% upside with a -5% leash, the managers there must be very confident in themselves.
The info these articles always conveniently leave out is that unlike most MM platforms, there's a significant amount of deferred on bonuses there.
less unbiased journalism than bluecrest-pushed marketing
If generally recommend working at one of the other shops because the issues are 3 fold:
1) lower risk allocations than MM. Have heard they also do a lot of replication on the back end
2) 3 year stage deferrals so do you ever get your full bonus?
3) tighter stops from 0, looser stops above 0
What does #1 mean for someone outside MM-land
It's a great setup for Michael, not so much for most of the PMs. After all the things I've heard, I'm glad I didn't take the PM offer.
Could you elaborate on the negative things you’ve heard? Also what was the payout they offered?
Pretty much everything everyone else has already said: replication on back end and deferrals. Payout was a little higher than 20% so not the 30% in the article, but I'd figure that's mostly for the experienced and/or up and coming superstar PMs
Does replication mean they are putting on your trades in the master fund?
And also, how is that different from Citadel? I assume every multi-hf is doing it behind the scenes
It's different bc at most equity places it is central execution and clean. They do it in rates and not just the main risk factors. They will literally have a desk in Geneva I think replicating everyone's trades, so the same inquiry goes out to banks after it gets traded and banks know this obviously and price accordingly.
Would you or someone mind explaining how exactly this works? Explain it to me like I’m a golden retriever
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