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 Hedge Fund Compensation Report 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, as the data shows, bigger is not always better).
In 2015, we see yet another round of lackluster performance, fueled by complex market conditions, continued interest rate uncertainty, a slowing Chinese economy, counter-productive ECB measures, terror threats and other impacting factors.
The most recent report revealed that hedge fund professionals received increases in both base salary and year-end bonuses. The average reported cash compensation was down this year and came in at $351,000.
Overall, reported cash compensation was down 5 percent over last year, driven by lower bonus payouts. Although average base compensation increased by single digits again this year, lower bonuses pulled down total hedge fund compensation.
Get more details on this and other valuable compensation data, including extensive charts & graphs, in the 2016 report.
The Hedge Fund Compensation Report will be of interest to both industry insiders and those looking to break into the industry.