Clipped bonuses for hedge fund managers

Turmoil in the credit markets will take a big bite out of hedge fund managers' bonuses this year, according to a report.
SEP 11, 2007
By  Bloomberg
Turmoil in the credit markets have taken a bite out of the bonuses for hedge fund managers this year, according to a report. Cash bonuses paid out to hedge fund managers are seen increasing between 1% and 9% from the previous year, marking a "substantially lower" increase than predicted before the credit crunch, according to the 2008 Hedge Fund Compensation report, which was released yesterday by Glocap Search LLC, Institutional Investor News and Lipper HedgeWorld. Just last June, Glocap had been predicting an increase in bonus size of between 18% and 20% in June. Still, hedge fund managers aren’t going hungry: Average total compensation for investment professionals with 10 years or more of experience at hedge funds with $10 billion or more in assets under management is expected to hit $2.35 million this year. Meanwhile, the average total compensation for investment professionals with between one and four years of experience at funds with between $1 billion and $3 billion in assets under management is estimated to come in at just over $330,000. Lipper HedgeWorld, Glocap and Institutional Investor News are based in New York.

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.