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Hedge Fund Compensation Survey

The seventh annual Hedge Fund Compensation Survey is now live. Each year, the Survey provides a benchmark for compensation practices by collecting data directly from the professionals who work in the industry.

The purpose of the annual Compensation Survey is to create an accurate and affordable report that allows hedge fund professionals and firms to compare their compensation to others in the industry, and identify important pay trends as they emerge. Each year the compensation survey provides great insight into an industry that is not well-known for sharing information.

The web-based survey can be filled out in about five minutes, and in return, all eligible participants who complete it will receive free access to the final 2014 Hedge Fund Compensation Report when it is published (a $397.00 value).

The Survey is the most comprehensive view of hedge fund compensation practices in the industry. Over the years, thousands of hedge fund professionals from firms around the world have shared information about their compensation packages (cash and non-cash compensation) and their work culture.

The Hedge Fund Compensation Survey is currently open to professionals in the hedge fund industry. Data is collected directly from hedge fund managers and employees from firms of all sizes. Some of the individuals participating in past surveys represented well known firms including: Kellogg Capital Group, Lansdowne Partners, Bank of New York Mellon, Black River, Brightpoint Capital, Carlson, Citadel, Citigroup, Deutsche Bank, HSBC, Morgan Stanley, UBS and Barclays Global Investors.

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2013 Hedge Fund Compensation Report Shows Big Bonuses are Back

Small hedge funds outperform the market, bonus levels rebound, and hiring reflects industry changes.

The 2013 Hedge Fund Compensation Report revealed that hedge fund players expected increases in both base salary and year-end bonuses. The average reported cash compensation for 2012 was $314,000 and, again this year, bonuses played a big role in the paychecks of these professionals. The annual industry report is based on data collected directly from hundreds of hedge fund managers and employees.

In 2012, when it came to fund size, bigger was not necessarily better. The size of the most recent fund raised in the typical firm represented in this year’s Report is less than $1 billion. “Despite reports of significant amounts of capital moving to large funds, it seems these small funds are outperforming the market,” said David Kochanek, Publisher of

Nearly three quarters of respondents reported positive returns for their funds in 2012. Last year, 16 percent of hedge fund professionals reported double-digit positive returns for their fund. This year that number jumped significantly to 30 percent. The number expecting their funds to be down 10 percent or less dropped from 22 percent to only 8 percent this year and only 2 percent reported negative fund performance in the double digits.

The new rules for hedge funds continue to impacting hiring. Again this year, one out of four funds is looking to hire research analysts. Professionals reported that their firms are also looking for talent in the operations, legal and investor relations areas.

“Dodd-Frank has given rise to many new rules and regulations and firms are shifting their staffs to understand and meet those rules,” said Kochanek. Hedge fund marketing, trading strategies and other aspects of fund management are now being examined closely with these new regulations. “Fund managers are more concerned than ever with compliance and operating with greater transparency and their hiring reflects this.”

Great fund performance results in significant bonuses as well and double digit pay increases nearly across the board. Average cash compensation was up 15 percent over last year. Base compensation increased only 4 percent; however, bonuses jumped 31 percent as a result of the solid performance turned in by these funds.

About The Report

The 2013 Hedge Fund Compensation Report is based on compensation data collected directly from hundreds of portfolio managers and employees from firms, both large and small, during October and November 2012. The full report can downloaded instantly at

The Report has grown to become the most comprehensive benchmark for hedge fund compensation practices in the industry. Respondents participating over the years represent a good cross section of the industry including small firms as well as some of the most recognized hedge fund firms, including: Apollo Global Management, Bank of America Merrill Lynch, Barclays, Blackwater Capital, Citi, Deutsche Bank, Gottex Fund Management, HSBC, JP Morgan Chase & Co., Man Investments, RBC, Silver Point Capital, UBP Asset Management, UBS and Wells Fargo Alternative Strategies.

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Participate in the Hedge Fund Compensation Survey

November 7, 2011

The fifth annual Hedge Fund Compensation Survey is live and is collecting data on hedge fund pay benchmarks. The online survey can be completed quickly and eligible participants who complete the survey receive the final Hedge Fund Compensation Report (a $297 value) free of charge. Hedge fund professionals can participate in the survey by visiting […]

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