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…
Major Trends Reshaping Hedge Fund Compensation – Income Gap Grows
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.