The annual Hedge Fund Jobs Digest Compensation Reports are based on surveys designed to capture valuable compensation information directly from those involved in the hedge fund industry. Over the years, we have surveyed many hedge fund portfolio managers, analysts, traders, CFO’s, COO’s, risk managers and others from hedge fund firms, both large and small.
Here we summarize the results of the hedge fund surveys to include some of the hedge fund earnings data and other findings. In the reports you will find large ranges of earnings by title because in the hedge fund industry there is no standard compensation plan or role definition. Traditionally, there are 3 drivers to hedge fund compensation: experience, performance of the fund and size of the fund (although bigger is not always better).
We surveyed hundreds of hedge fund employees from firms such as Bank of New York Mellon, Barclays Global Investors, Citigroup, Fountain Advisors LLC, HSBC, Kellogg Capital Group, Lansdowne Partners and many others. Given the state of the market, the results tell an interesting story. Despite no significant increase in compensation, there was a big increase in satisfaction – an indication that, earlier this year, hedge fund employees knew the market had shifted. Hedge Fund Compensation Report
In 2007, we found that 76% of respondents were dissatisfied with their current compensation package and there was little loyalty to the firm. Most of the survey respondents are in senior roles, have over 10 years of work experience but less than 2 years with their current firms. Was it the fact that intelligent, well educated, hard charging “type A” personalities are never satisfied? Or could it have been that the hedge fund industry really does have a problem simply due to the high demand for talent? 2007 Hedge Fund Compensation Report details
The Hedge Fund Compensation Reports will be of interest to both industry insiders and those looking to break into the industry. If you have questions or comments regarding the surveys, please use the “Contact Us” link at the bottom of this page.