Hedge Fund Employees Expect Fatter Paychecks in Beleaguered Year

December 14, 2018

Hedge fund employees of all stripes, from junior analysts to portfolio managers, have something in common this year: They’re all expecting fatter paychecks.

Despite an industry beset with lagging performance, an investor exodus and closures, hedge fund professionals expect a median compensation of $520,000 in 2018, a 16 percent increase from last year, according to a survey by Odyssey Search Partners, an executive search firm based in New York.

Compensation Bump

Hedge fund professionals of all levels and firm size expect greater pay in 2018

Partners, portfolio managers and other senior staff predict a more modest increase in comparison to their junior counterparts. They see a median compensation of $950,000, up nearly 10 percent. This group’s compensation is the most tied to performance.

All figures reflect U.S. funds of all sizes and employees at all levels. The more than 500 respondents were polled from September through November.

The $3 trillion industry is battling poor returns, shrinking assets and pressure to lower fees. A slew of other hedge funds including Tourbillon Capital Partners and Highfields Capital Management in the past year have said they will close.

Hedge fund employees said in the survey that they are still bullish overall on their industry. However, their confidence is muted — this time last year they expected a 39 percent bonus increase versus 21 percent this year, according to the survey.