Hedge Fund Compensation to Decline?

Compensation levels for both hedge fund managers and investment firms are likely to take a nosedive says well-known investor Barton Biggs.

Biggs is managing partner at Traxis Partners, a multi-billion dollar hedge fund based in New York City. He was formerly chief global strategist at Morgan Stanley during a 30-year stint at the bank, and been named to Institutional Investor’s “All-American Research Team” 10 times.

“I believe that the financial services industry, including hedge funds and investment management firms, are in the early stages of a secular bear market,” Biggs said in an interview with CNBC. Biggs is also fairly negative on the long-term prospects for Europe, predicting a decade of slow growth on the continent. “There are other places in the world that are more attractive,” he said, citing Asia and other emerging markets, as well as the U.S.

For a more granular look at where hedge fund manager compensation may be heading, we suggest taking a look at the annual Hedge Fund Jobs Digest Compensation Report. This report is based on actual surveys of hedge fund portfolio managers, analysts, traders, CFO’s, COO’s, risk managers and others from hedge fund firms, both large and small.

The Report is now offers the most comprehensive, reliable and affordable compensation benchmark on the market. This year’s Report, with dozens of figures and graphs, provides you with all the information you need to better understand hedge fund compensation practices.

Some of the highlights from this year’s report include:

– The annual average compensation for hedge fund professionals was $326,000 USD.

– As markets have improved, discontent with earnings has increased. The grass is greener once again.

You can get more details about the Hedge Fund Jobs Digest Compensation Report at JobSearchDigest. Meanwhile, what’s your opinion? Do you think compensation for hedge fund managers or associates is heading south, and if so, why? Add your comments below.