Back in 2011, those in hedge funds discussed how the weak market was quickening the redemption rate and causing a difficult job market for alternative investment professionals. This was in addition to were worried due to a decrease in fund performance and corresponding
But these days, the news is mostly good. The market is up and 25 percent of firms are looking to hire research analysts. Firms are also looking for talented individuals in investor relations, back office ops, and legal and compliance areas.
Ninety percent reported positive returns for their funds and 54 percent expected double-digit positive returns for their fund. At the top end of performance, 18 percent reported returns of more than 25 percent.
Based on the data collected directly from managers and employees representing hundreds of hedge fund firms, the report showed average base compensation was up by 4 percent and bonuses (where the real money is made) were up by 30 percent.
“When the performance incentives are properly aligned, there is significant upside available,” said David Kochanek, Executive Director at the consulting firm Benchmark Compensation. “These programs were re-aligned after the crisis.”
As is always the case in up years, once again bonus dollars account for the biggest piece of cash compensation for hedge fund professionals.
The top paid position in hedge funds this year? Partners and Principals to the top honors with an average base plus bonus total of $528,000, primarily driven by large bonuses. And, on the satisfaction front, it was no surprise to see these professionals said they were the most satisfied with their packages.