A report compiled by Glocap Search LLC, Institutional Investor News and Lipper Hedge World has found that hedge fund managers are now earning more than USD1.5 million a year in base salary and bonuses. This is as a result of talent in the industry continuing to grow.
The report entitled Hedge Fund Compensation Report, found that compensation in the hedge fund universe has grown by 10 to 15 percent on average during 2006.
Back office personnel, including risk managers, compliance officers and marketing professionals, also received raises of 20 percent on average.
The total compensation received by experienced traders on top-performing hedge funds is currently more than USD580,000 per year.
COO of larger firms receive over USD800,000 a year in base salary and bonuses.
“Despite some noise to the contrary, hedge fund compensation has continued its overall upward trend,” says Adam Zoia, a managing partner at Glocap. “It is largely an indication of the continued growth in assets under management and the increased number of professionals per hundred million dollars under management versus the less than proportionate increase in the number of qualified professionals to fill the open positions.”