Hedge Fund Compensation 2012
Hedge Fund Compensation On the Rise, Survey ShowsWhile hedge fund performance in 2012 has not been as impressive as many hoped, investors continue to entrust managers with their capital and hedge fund compensation is on the rise. The financial crisis and Great Recession certainly took a toll on hedge fund professional's paychecks but in an increasingly complex and hard-to-navigate investing climate, investors are looking to hedge funds to have an edge. The rise in total assets under management for the industry has brought in performance and management fees for hedge funds and allowed for increases in compensation to employees.
According to a recent compensation survey done by Glocap Partners, hedge fund compensation increased by 15% this year over last year. Of course this is good news for professionals in our industry but also investors might take some comfort in the trend because the compensation often attracts top-tier talent in the analyst, trader and portfolio manager roles that hedge funds might not have been able to afford a few years before when budgets were tight and talent was harder to retain.
If you're wondering what you can expect to take home as portfolio manager at a mid-sized hedge fund, the survey found an average compensation of about $1.3 million. Senior traders took home less than half that at $500,000. Pay for analysts and traders overall has risen this year, although some traders saw cuts as most of the raises went to higher-level management. Source
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