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发帖数: 978 | 1 BY kELLY BIT
U.S. hedge-fund compensation will fall an average of 10 percent this year
com-pared with 2010 as performance suffered, according to a report by Glocap
Search LLC and hedge fund research inc.
Portfolio managers’ pay, which is most closely tied to performance, should
see the biggest decline, slumping about 30 percent on average, according to
Adam Zoia, chief executive officer of Glocap, a New York-based recruiting
firm. Hedge funds have lost 5.4 percent on average this year, according to
data compiled by Bloomberg, as the European debt crisis worsened and the U.S
. economy threat-ened to slip back into recession.
“This has been a tough year,” Zoia said in a telephone interview. “People
therefore have lowered year-end expectations and those expectations will be
met.” Compensation rose in 2010, when hedge funds gained 8.2 percent on
average, and in 2009, when they climbed 9.1 percent, according to the
Bloomberg hedge fund aggregate index.
Pay declined in 2008, after the average fund lost 19 percent.
Glocap and Chicago-based Hedge Fund Research said they
expect remuneration this year to mirror 2009 levels.
Compensation for junior-level analysts is expected to decline on
average less than 10 percent, Zoia said.
Fund marketer and compliance staff pay will likely range from
flat to an increase of 10 percent to 15 percent as demand has
outweighed supply, he said. Hedge-fund accountants’ compensa-
tion should be flat to slightly up.
In 2008 and 2009, the majority of hedge funds dipped into
management fees and general fund resources to pay bonuses,
the report said.
Hedge funds typically charge a management fee of 2 percent of assets and a
per-
formance fee of 20 percent of profits.
Using management fees to pay bonuses, while not a common practice, is a way
to
retain staff and shows that hedge-fund compensation is “sticky downward,”
the report
said.
Industry assets reached a peak of $2.04 trillion in the second quarter
before declin-
ing to $1.97 trillion last quarter, according to the report.
The report’s estimates, which include hedge funds of all sizes, are based
on place-
ment data from searches made by Glocap, as well as input from the firm’s
staff and
interviews with hedge-fund managers and human resources personnel.
Base salaries remain little changed year to year, Zoia said, making bonus
fluctua-
tions the biggest driver of hedge-fund compensation.
–With assistance from Melissa Karsh |
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