Data science and quant researcher pay: banks vs hedge funds

Hedge funds are often seen as a far more lucrative opportunity for quantitative researchers, but just how true is that sentiment? Is the same true of data scientists? A new salary survey from recruitment firm Octavius Finance has endeavored to find out.

Click here to follow our new WhatsApp channel, and get instant news updates straight to your phone 📱

The survey has broken down average pay in London for both roles by seniority and by sector, at hedge funds and on the sell-side. At the team head level, data scientists can expect to earn more in hedge funds, but not necessarily quants.

At the upper range of both salaries and bonuses, a quant research team lead can expect to earn a total compensation (TC) of £750k ($1m) in either sector. Hedge fund researchers receive significantly larger bonuses, while sell side quants receive significantly larger salaries, and they seem to cancel each other out.

That dichotomy is similar for data scientists, but the sell-side salaries aren't enough to match hedge fund bonuses. The latter pays an average TC of £540k at the upper end of the average range, while the former earns £440k. At the lower end of the average range, the sell-side pays marginally more.

Upper-average candidates can expect to earn more in a hedge fund for both roles at junior level. Data scientists with 1-3 years experience earn a TC of up to £120k in a hedge fund, while quant researchers earn £144k. On the sell side, those figures are £112.5k and £117k respectively.

Of course, these are only averages, and there's potential to make much more than this in either sector. For example, one mid-level hedge fund quant in China last year allegedly made $23m (£17.2m). 

Have a confidential story, tip, or comment you’d like to share? Contact: Telegram: @AlexMcMurray, WhatsApp: (+1 269 237 3950). Click here to fill in our anonymous form, or email editortips@efinancialcareers.com.

Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)