Five Posts Earn 6 Figures At Hedge Funds With $1B+ AUM

Nov 23 2011 | 10:08am ET

There are five posts that will earn you at least $1 million a year if you work for a hedge fund manager with $1 billion (or more) AUM.

That’s the result of the latest research from Infovest21, which polled 15 hedge fund managers with assets of at least $1 billion for its 10th annual report on hedge fund compensation.

If you want a six-figure salary, your best bet is to become the chief executive officer at a $1 billion-plus fund—on average, they earn total compensation of $1.96 million, according to Infovest21.

Next come portfolio managers, making on average, $1.30 million; chief financial officers, at $1.18 million; and directors of sales & marketing fourth, with total compensation of $1.00 million.

Compared to 2010, said Lois Peltz, president of Infovest21, “the trend was mixed.”

“Chief executive officer, chief operating officer and portfolio manager received, on average, a lower total compensation package in 2011 than in 2010 as did some of the mid- and junior-level positions e.g., mid-level analyst, junior analyst and assistant controller.

That said, compensation increased for some investment and infrastructural positions, such as the chief financial officer, senior analyst, general counsel, comptroller, director of operations and operations/mid office.

Sales and marketing directors saw their compensation remain flat year on year.

Infovest21 says the profile of their survey respondent is a hedge fund manager with an average track record of 13.5 years and gains of 3.4% during the first half of 2011.

Looking ahead to 2012, 40% of respondents expected base salaries to increase as a percentage of total compensation while 27% expected them to decrease. Only 13% expected the equity component of the package to increase while 20% expected it to decline.

Infovest21 conducted its compensation survey during September, October and November by phone or email and included 23 executive and back office positions.

Separate surveys were conducted and results analyzed for those managers with assets over $1 billion and those with assets under $1 billion.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note