Hedgies Enjoy The Spoils Of Success: Pay Up 50%

Apr 15 2008 | 10:33am ET

The average hedge fund returned about 11% to investors last year. But the average hedge fund manager enjoyed a 50% raise.

Despite the high-profile hedge fund blow-ups, credit crunch and market volatility, the industry posted respectable gains, and added a record $194.5 billion in new money. That performance allowed hedge fund professionals to enjoy substantially higher compensation across the board, according to a new survey from Alpha magazine.

CEOs of single-manager shops made, on average, $3.8 million in total compensation, while the heads of multi-strategy firms took home more than $5.3 million on average. The average fund of hedge funds CEO made $1.8 million.

The average junior trader made more than $200,000 last year. Senior traders at multi-strategy funds earned, on average, $819,000, while those at single-manager shops made more than $1.6 million.

Alpha surveyed more than 800 people at 600 firms.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...