If you’re a trader who wants to work for a hedge fund, Millennium Investment Management has something going for it. The hedge fund is divided globally into 200+ independently run teams, each of which is rewarded proportionate to its own results. Whereas other large funds pay on the basis of ‘netting’ (gains minus losses) across strategies, Millennium’s pay structure is more granular – if your team’s strategy does well, you’ll be rewarded, even if all other teams at the fund make a loss.
What does this mean for salaries and bonuses at an individual level? Millennium doesn’t divulge pay globally, but the fund’s two UK-based entities, Millennium Capital Management Ltd. (the UK holding company, which includes all administrative and investment staff) and Millennium Capital Partners LLP (the partnership comprised predominantly of the investment staff) have just published pay figures and headcount for the year ending 31 December 2019.
Millennium Capital Partners LLP, which employs only Millennium's 'professional' (front office) staff working in portfolio management and research pays the most. In 2019, the company employed 166 professional investment staff, up from 127 the year before. It paid them a total of £137m, or an average of £828k ($1.1m) each.
When administrative staff are added in, average compensation falls. Millennium Capital Management’s 341 UK staff (188 “professionals” and 153 “administrators”) were paid £197m in 2019, or an average of £578k each.
In both cases, pay rose substantially. At Millennium Capital Partners Ltd. average pay was up 52% last year. At Millennium Capital Management in London, it was up 75%. This was despite the fact that Millennium did plenty of hiring.
Both Millennium’s UK entities increased revenues substantially last year. At Millennium Capital Partners, gross profits went from £112m in 2018 to £207m in 2019.
Millennium's UK accounts were released a few weeks after rival Citadel released accounts showing that UK staff were paid an average of $1.1m each in 2019, while partners received $21m. Millennium obscures the amount it pays individual partners in the UK by only making allocations to corporate entities representing partners.
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