Institutional Investor’s Alpha magazine 2009 hedge fund compensation report is out – and the quick take-away is that while pay has fallen, it hasn’t fallen as far as some might expect.
Across the 800 hedgies surveyed, total compensation fell from from $940,000 to $794,000 in 2008, with cash bonuses down by an average of 24 per cent.
As 1440 Wall Street points out given the price action elsewhere, quite a few hedge fund types might actually come out ahead here:
While compensation in Hedgistan is down, so is the average the average house price in East Hampton. Given that we will be hard pressed to avoid deflation, hedgies will probably witness an increase in purchasing power this year. And with tables at the best restaurants in the City going begging, you are set up to live large in 2009-’10.
Related link:
From hedgefund to pizza delivery – FT Alphaville