Hedge fund professionals are expecting year-end bonuses to climb 39 percent at the end of this year, according to a survey of 500 buy-side investors. That view may be too optimistic, said a partner at the firm that did the polling.
Respondents on average said they’re looking for bonuses rising to $562,000 from $405,000 a year earlier, recruitment firm Odyssey Search Partners said Monday in a statement. Sector heads, partners and portfolio managers expect a 79 percent rise to $1.38 million.
Hedge funds climbed about 6 percent through the end of November, compared with a 2.8 percent rise for the full year of 2016, according to indexes tracked by Hedge Fund Research. The S&P 500 Index rallied more than 18 percent this year through Nov. 30. The average hedge fund has lagged behind the stock market every year since 2009, prompting institutional investors to slam the industry for fees they say are too high given the performance.