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A sign that hedge funds are no longer the place to be

While investment banks have mostly had a good first quarter, the same cannot necessarily be said of hedge funds. GLG’s first quarter results, released yesterday, paint a picture of slowly falling headcount and – unlike investment banks – rapidly declining pay.

GLG said its compensation and benefits and partner profit share fell 62% year on year thanks to ‘lower employee compensation and benefits, as well as lower discretionary bonus accruals and limited partner profit share.”

Headcount was down only 9% over the same period, suggesting a big reduction in pay per head.

This is in sharp contrast to investment banks, most of which saw pay per head rise dramatically over the past three months.

If this continues, hedge funds look set to lose staff to the banks they originally poached them from.

Comments (10)

  1. One Hedge Fund has poor first quarter results so that must mean they are all going to close

  2. over 3000 absolute return funds made money in 08 ,

    the hedgies are doing just fine,

  3. I think Sarah Butcher’s point here is that GLG is one of the biggest names in the hedge fund business. It is like Vodafone. So when they show falling compensation, perhaps it is an indicator of the broader HF market.

  4. Seriously can you PLEASE strop publishing all these articles with no point whatsoever, hedgies are what they allways used to be and they are doing fine, this looks like you are really are not busy at all…… please some more quality thanks

  5. Where is the place to be, these negative articles are not constructive, tell us where we should be, every negative article should have a postive ending

  6. Wretch, we have had several positive articles this week. I suggest that you read a negative article, and then read a positive one immediately afterwards. That may have the same effect.

    Max, this is not intended to be an article with no point whatsoever. The final point may be a little too strong for the evidence provided, but there is a point in there.

    Sarah, Editor, eFinancialCareers Reply
  7. What a waste of time.

  8. Sarah Butcher home gurl pay these bankers no mind,
    Cuz I know it must be hard being on the grind
    Every time i see your picture, I have to smile
    Cuz it makes these long hours seem worthwhile
    Looking forward till next time when I log in and see
    Another article filled with your journalistic integrity
    Stay cool, keep positive in the face of adversity
    Cuz I got your back girl so give a shout out to me

  9. I think the headline should have read ‘Is GLG not quite like the new Goldman Sachs…’?

  10. Max1, get lost, if you’re not happy go read the FT you sad little cry baby

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