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

KKR drums up more than $850M for real estate credit fund
KKR drums up more than $850M for real estate credit fund

The titanic alternative asset manager sees potential for deals offering a compelling measure of safety.

Number of CFP professionals reaches fresh worldwide record
Number of CFP professionals reaches fresh worldwide record

The global body overseeing the CFP mark hails milestone year, with the US accounting for most of the 230,000 plus planners now holding the designation.

Ackerman promoted at Integrated Partners, Robertson Stephens strengthens board
Ackerman promoted at Integrated Partners, Robertson Stephens strengthens board

Some of this week's hires across the wealth and investment industry

Emergency savings dynamic shifts to positive for first time in three years
Emergency savings dynamic shifts to positive for first time in three years

More Americans have added to their savings than depleted them.

Muted week for stocks, bonds amid data, trade, conflicts
Muted week for stocks, bonds amid data, trade, conflicts

Some big headlines have made many investors cautious this week.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.