After taking a nosedive in 2008, hedge fund compensation at U.S. funds has begun to inch up again, according to a new survey from Glocap Search and HedgeWorld.
Total compensation, including salaries and bonuses, moved up by 7 percent in 2009 for middle- and bottom-performing funds, and by 2 percent at top performing funds. This pales in comparison to the 17 percent drop in total compensation for bottom- and middle-performing funds and 7 percent drop at top performing funds in 2008, but it’s a step in the right direction.
According to the Glocap survey, mean total compensation peaked in 2007, and ranged from $551,000 for bottom-performing funds to $931,000 for top-performing funds. Of that peak, roughly two-thirds of compensation came in the form of bonuses. Employees at top-performing funds typically earn a greater percentage of their total compensation from bonuses, while base salaries average about the same, $220,000, for both groups.
Hedge fund job hiring is picking up as well, according to Glocap, which reports a “flood” of new search activity.