The average hedge fund portfolio manager will take home just shy of $1 million in 2017, according to Institutional Investor’s inaugural All-America Buy Side Compensation report.
The new survey calculates average base pay and variable compensation across hedge funds, mutual funds, and investment advisory firms, with variable income defined as bonuses, commissions, and options.
Roughly 800 portfolio managers and research analysts at firms managing U.S. equities self-reported their current incomes and what they expect to earn over the next 24 months.
In addition to role and firm type, compensation is compared within eight levels of firms’ assets under management, ranging from less than $500 million to $150 billion or greater.
The 2017 All-America Buy Side Compensation report measures the average base and variable compensation for Portfolio Managers, Portfolio Manager/Research Analysts, and Research Analysts at the top Hedge Funds, Investment Advisory Firms, and Mutual Funds in North America.
Participants in the survey:
Definitions:
Average Compensation
The average of the reported base and variable compensation figures in USD were calculated for each of the three title groups (Portfolio Managers, Portfolio Manager/Research Analysts, and Research Analysts) for each of the three institution types (Hedge Funds, Investment Advisory Firms, and Mutual Funds) broken out by eight AUM bands.
Compensation Distribution
The proportion of the group of individuals with a given title at a given institution type whose given base and variable compensation falls within each of the dollar amount ranges is calculated within each AUM band.
Expected Change in Compensation
The proportion of the group of individuals with a given title at a given institution type that gave each answer type is calculated within each AUM band. The percentages listed in the Total row for each of these tables shows the overall proportion for each answer for all of the individuals in the title/institution type grouping across all AUM bands.