Single-Digit HF Hikes Seen

Date: Monday, September 10, 2007
Author: Hedge Fund Daily

Base salaries and year-end bonuses doled out to hedge fund professionals are likely to fall within the single-digit range this year as a result of current credit woes, according to the 2008 Hedge Fund Compensation Report. Released jointly by Glocap Search, Institutional Investor News and Lipper HedgeWorld, the study took into account market changes this summer and revised down the bonus level to anywhere from 1% to 9% compared with those awarded in 2006. The report found average compensation varied greatly between HF professionals who are less experienced at smaller hedge funds and their more seasoned peers at larger funds. For example, HF pros with between one and four years’ experience at funds with between $1 billion and $3 billion AUM receive an estimated comp package of just over $330,000. In contrast, their counterparts with 10 or more years’ experience at HFs with $10 billion AUM was $2.35 million on average. According to the survey, fundraisers will earn an average pay package of roughly $730,000 this year, while senior analysts are expected to receive an average total cash compensation of $325,000.