Mon, Apr 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund compensation declines on performance volatility

Wednesday, October 26, 2011
Opalesque Industry Update: Hedge fund compensation declined by approximately ten percent on average across varied functional roles in 2011, according to the 2012 edition of the Glocap Hedge Fund Compensation Report. The compensation data released today shows a wide dispersion of compensation, between and within firms, driven by a number of variables including role, seniority/experience, fund size and performance for the year.

The total hedge fund industry surpassed previous record levels of total capital under management in both 1Q and 2Q11, reaching $2.04 trillion, before declining sharply in 3Q as the hedge fund industry posted the fourth-worst performance quarter in history, with the HFRI Fund Weighted Composite declining by -6.2 percent.

The growth in assets under management led to an increase in overall management fee income that partially offset the decrease in incentive fee income. In addition, despite 3Q performance, the percentage of funds reaching their performance high watermarks in the trailing 12 months continued to rise, exceeding 70 percent as of the end of 3Q11, which further stabilized the pool of income available for compensation. Press release: Source
pd

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably