Major Trends Reshaping Hedge Fund Compensation – Income Gap Grows

While some trends in headline hedge fund compensation remain the same – average base salaries for analysts at large firms remain relatively unchanged year-over-year – looking beneath the numbers tells a tale of two cities, a new compensation report reveals. The pay disparity between the top and bottom of the hedge fund performance range has increased dramatically – fund managers exhibiting the ability to generate alpha are taking a larger percentage of the pie – while a new thirst for quantitative investment approaches is pushing base salary levels for those positions well beyond that of a traditional discretionary portfolio manager or managing director.