INFOVEST21, LLC [ home ]

Webinar Playback: Trends in Instititional and Family Office Asset Allocation ________________________________________________________ Search all News Provider articles in Infovest21 archives. Click the Infovest21subscription button in the upper right hand corner to subscribe now or call (212)686-6440. An annual subscription is $495. You can search all archived News Provider articles going back to January 2000. These archives are available to all News Provider subscribers as part of their subscription package. Individual articles are available for purchase by non-subscribers. Put a keyword in the "search" box, and hit "enter." Select the article you would like to read and provide your payment details. The article will be emailed to you. ____________________________________________________________ Most Read Articles This Week New funds of funds reflect bifurcated interest in the market, Feb 16 Permal Univ of Penn reduces allocation to credit hedge funds, Feb 13 Investcorp net income drops 90% on hedge fund performance, Feb 13 State of Wisconsin commits $50M to BlueTrend Fund, Feb 14 Goldman Sachs commodities prop trader to launch hedge fund, Feb 14 __________________________________________________ For more information on Infovest21 products, click: Infovest21 Surveys Infovest21 White Papers Infovest21 Special Research Reports Infovest21 Investor Focus Infovest21 Morning Investor Seminars Infovest21 Afternoon Seminars/Receptions Infovest21 Meet The Manager Forums Webinars Testimonials
Five Positions Top $1M in Large Hedge Fund Manager Compensation Survey

In its just-released Tenth Annual Compensation Results for Hedge Fund Managers with Assets Over $1 Billion, Infovest21 found that five positions have an average total compensation of $1 million or more. The Chief Executive Officer was the top position with an average total compensation of $1.96 million. The Chief Investment Officer came in second with an average $1.65 million total compensation package. Portfolio Manager, Chief Financial Officer and Director of Sales & Marketing followed with total compensation of $1.30 million, $1.18 million and $1.00 million respectively. 2011 vs 2010 comparison In comparing 2011 and 2010 results, the trend was mixed. Chief Executive Officer, Chief Operating Officer and Portfolio Manager received, on average, a lower total compensation package in 2011 than in 2010 as did some of the mid and junior level positions e.g. Mid-Level Analyst, Junior Analyst and Assistant Controller. However, some of the investment and infrastructural positions saw increases such as the Chief Financial Officer, Senior Analyst, General Counsel, Comptroller, Director of Operations and Operations/Mid Office. The total compensation for the Director of Sales and Marketing in 2011 was about the same level as 2010. Profile The profile of the hedge fund manager who responded to the 2011 survey, had an average track record of 13.5 years and gained 3.4% during the first half of the year. Other highlights Two-thirds were above their high water mark 76% had assets between $1-4.9 billion 85% of the respondents said their assets had increased over the past year 74% were stand-alone organizations 60% said they had increased their headcount while 7% said they reduced headcount. Going forward, 40% of the respondents expect the base salary will increase as a percentage of the total compensation package while 27% expect the base salary will decrease. 13% expect the equity component of the package to increase while 20% expect the equity component to decline. As would be expected, the $1 billion+ hedge fund managers received higher compensation in all positions surveyed than those hedge fund managers with assets below $1 billion. The greatest differential was in the Chief Investment Officer position while the narrowest differential was in IT. Methodology The survey was conducted during September, October and November by phone or email. 23 executive and back office positions were included. Top management positions included Chief Executive Officer, Chief Investment Officer, Chief Financial Officer, Chief Operating Officer and Chief Risk Officer. Investment positions included Portfolio Manager, Senior Analyst, Mid-Level Analyst, Junior Analyst and Director of Research. Sales and marketing positions included Director of Sales and Marketing, Director of Investor Relations and Client Services. Legal/Compliance positions were General Counsel and Compliance Director/Manager while financial positions included Controller, Assistant Controller, and Fund Accountant. Director of Operations and Operations/Mid Office comprised the operations positions. Other positions included Head Trader, Trader and IT. The results are based on data from 15 separate hedge fund management firms, all with assets over $1 billion. In calculating the statistics throughout the survey, we include only those respondents who provided concrete compensation data with dollar figures. Separate surveys were conducted and results analyzed for those managers with assets over $1 billion and those with assets under $1 billion. Similar compensation results are available for funds of funds.
Excerpt from just-released survey: Tenth Annual Compensation Results for Hedge Fund Managers with Assets Over $1B Report is approximately 60 pages including tables and graphs. Order your copy by calling 212-686-6440.