Nov
04

Hedge Fund Managers’ Paychecks to Shrink 9% Amid Weaker Returns

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  • Worsening returns to hit bonus payouts, industry survey shows
  • Average hedge fund lost 1.6 percent this year through Oct. 31

Money managers at hedge funds overseeing more than $4 billion will see their pay fall by 9 percent this year as weaker returns lower bonus awards, according to an industry survey.

“Lower performance will contribute to lower incentive compensation at many of the industry’s most well established funds,” according to a report from Glocap Search LLC, a New York-based executive-search firm, and data provider Hedge Fund Research.

The managers will still earn about $2.2 million this year even as their funds lost 1.6 percent on average through Oct. 31, while assets under management slipped to $2.9 trillion from $3 trillion globally in the third quarter, Chicago-based HFR said. It was the industry’s biggest three-month contraction since 2008 as extreme price swings caused by uncertainty over the direction of U.S. interest rates and China’s slowing economy led to steep losses…

Hedge Fund Managers’ Paychecks to Shrink 9% Amid Weaker Returns

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