A group of four hedge funds, Centaurus Capital, O S S Capital Management, Armajaro and Comac Capital revealed different ways in which they reward their employees and keep talent within the company at the GAIM 2011 conference in Monaco.
Oscar Schafer, Managing Partner at hedge fund O S S Capital Management said there are three associates who are partners at the firm. While none of them have their own books, Schafer says he believes the company and managing clients money is a team effort and every year bonuses are awarded from a pool.
Schaffer founded O S S Capital Management in 2001 and prior to this was a member of Cumberland Associates, a private investment partnership with assets approximately at $1 billion from January 1982 until December 2000.At London hedge fund Centaurus Capital, the Co-Founder and Chairman Bernard Oppetit revealed a slightly different approach.
We have three founder partners and we decide and control the firm, saud Oppetit. But we do give points to other portfolio managers and we guarantee them certain percentage of bottom line. Not 100% of the bottom line is allocated but at the end of the year we use our discretion when awarding bonuses.
Meanwhile, Anthony Ward, Co-Founder at Armajaro said equity is the right way to go. He said that its better to give talent equity in the company so talent is more invested for the long term.
And at Comac Capital, a 5 year-old hedge fund, Malcolm Butler, partner & COO said that since the outfit is smaller for the time being, managerial discretion for awarding bonuses is the current framework.
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