- 2-3 indepth investor interviews on hedge fund allocation, strategies used,manager selection, decision-making process
- Relevant research to investor group
- Relevant statistics
- Who's Who in investor group
- Related news articles
- Regulatory update
- Sentiment indicators (investor,manager, marketer on a rotating basis; each quarterly)
and PM have average total compensation over $2M
In its just-released "12th Annual Compensation Survey for Hedge Fund Managers with Assets Over $1 Billion," Infovest21 found that the Chief Investment Officer, with a total compensation of $2.43 million, topped the list of 20 positions at the typical hedge fund firm.
The Chief Executive Officer received the second top paying compensation package at $2.28 million while the Portfolio Manager followed with a total compensation of $2.27 million.
Meanwhile, five positions have an average total compensation of $1 million or higher - Chief Operating Officer, Chief Risk Officer, Director of Sales & Marketing, Director of Research and Senior Analyst.
Four positions have total compensation between $500,000 and $999,999 - Chief Financial Officer, Controller, Head Trader, and Mid-Level Analyst.
Six positions have total compensation below $400,000 - Compliance Director, Junior Analyst, IT, Director of Operations, Client Services and Fund Accountant.
2013 vs 2012 comparison
The results generally reflect increased compensation trends for those firms that outperformed.
In comparing 2013 and 2012 average compensation results, a mixed trend exists. Chief Investment Officer and Chief Executive Officer had a lower total compensation package in 2013 than in 2012 while the Chief Risk Officer and the Chief Operating Officer had higher compensation.
In the investment category, all positions except Portfolio Manager had a higher total compensation in 2013 than 2012. In sales and marketing, legal/compliance, financial, and trading, all positions had higher compensation in 2013 than 2012.
Director of Operations and IT had lower total compensation in 2013 compared with 2012.
The profile of the average hedge fund manager who responded to the survey had average assets of $5.7 billion, has been in existence for almost 15 years and generated returns of 12.8% for the year through October. About 93% of the managers said they are above their high water mark and earning their performance fee.
Other highlights included:
- 86% of the respondents said their assets had increased over the past year while none said assets had declined. Another 14% said assets had not changed.
- The average number of employees was 98 people (with one outlier removed).
- About 86% of the respondents were stand-alone organizations
The survey was conducted during September, October and November by phone or email. Twenty executive and back office positions were included. Top management positions included Chief Executive Officer, Chief Investment Officer, Chief Operating Officer, Chief Risk Officer, Chief Financial Officer. Investment positions included Portfolio Manager, Director of Research, Senior Analyst, Mid-Level Analyst, and Junior Analyst. Sales and marketing positions included Director of Sales & Marketing, Director of Investor Relations and Client Services. Legal/Compliance positions included General Counsel and Compliance Director. Financial positions included Controller and Fund Accountant. Other positions included Director of Operations, Head 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, only respondents who provided concrete compensation data with dollar figures were included.
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 will soon be released for funds of funds.
To order you copy of the survey, contact Infovest21 at 212-686-6440.