Pity the worst hedge fund managers who only made 300k last year

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Much is being made of the hedge fund moguls who still managed to bring in many billions even in a down market, but spare a thought for the less successful hedge fund managers who were glued to their screens for far less and may now be feeling inadequate.

According to the latest salary survey from Institutional Investor's Alpha Magazine, the poorest paid senior portfolio managers at multi-strat hedge funds earned the dollar equivalent of 300k in cash compensation last year, with another 100k deferred.

Junior hedge funders were less fortunate. At the lower end, cash compensation for junior fund managers at multi strat firms was 162k last year.

The survey reveals that deferred compensation has come to the hedge fund world in a big way, with the non cash component of bonuses more than doubling at most firms. It also shows that if you want to make money working for a hedge fund, you're best off going to a single manager and steering clear of funds of funds.

John Godden, founder of hedge fund consultants IGS Group, says this is to be expected: "The average multi-strat funds employs more people than the average single manager so pay has to be shared more widely. And there is more skill involved in single strategy."

Hedge fund pay 2009

<FONT SIZE=3Single manager investment professionals

Senior analyst

Base: $154k; (% change on 2008) -5.6%

Cash bonus: $607k; (% change on 2008) -11.7%

Non cash bonus: $678k; (% change on 2008) 171.9%

Total comp: $833k; (% change on 2008) -24.3%

Junior analyst

Base: $96k; (% change on 2008) 2.6%

Cash bonus: $94k; (% change on 2008) -34.7%

Non cash bonus: $98k; (% change on 2008) 124.3%

Total comp: $196k; (% change on 2008) -22.9%

Senior portfolio manager

Base: $205k; (% change on 2008) -45.0%

Cash bonus: $738k (% change on 2008) -51.6%

Non cash bonus: $978k (% change on 2008) -39.2%

Total comp: $1.1m; (% change on 2008) -47.5%

Junior portfolio manager

Base: $140k; (% change on 2008) -10.0%

Cash bonus: $318k; (% change on 2008) -34.9%

Non cash bonus: $376k; (% change on 2008) 27.8%

Total comp: $515k; (% change on 2008) -25.8%

<FONT SIZE=3Fund of funds

Senior analyst

Base: $160k (% change on 2008) 31.1%

Cash bonus: $166k (% change on 2008) -47.0%

Non cash bonus: $173k (% change on 2008) 136.2%

Total comp: $333k (% change on 2008) -14.2%

Junior analyst

Base: $65k (% change on 2008) -14.9%

Cash bonus: $33k (% change on 2008) -53.3%

Non cash bonus: $38k

Total comp: $103k (% change on 2008) -30.4%

Senior portfolio manager

Base: $209k (% change on 2008) -46.6%

Cash bonus: $1.05m (% change on 2008) 12.1%

Non cash bonus: $1.1m (% change on 2008) 464.9%

Total comp: $1.3m (% change on 2008) 0%

Junior portfolio manager

Base: $105k (% change on 2008) -14.5%

Cash bonus: $67k (% change on 2008) 58.5%

Non cash bonus: $81k (% change on 2008) -0.1%

Total comp: $186k (% change on 2008) -41.5%

<FONT SIZE=3Multi-strategy firms

Senior analyst

Base: $172k (% change on 2008) -18.9%

Cash bonus: $326k (% change on 2008) -41.2%

Non cash bonus: $386k (% change on 2008) -78.2%

Total comp: $542k (% change on 2008) -56.7%

Junior analyst

Base: $113k (% change on 2008) 19.4%

Cash bonus: $217k (% change on 2008) 32.9%

Non cash bonus: $224k (% change on 2008) 880.9%

Total comp: $337k (% change on 2008) 28%

Senior portfolio manager

Base: $209k (% change on 2008) -54.7%

Cash bonus: $484k (% change on 2008) -74.6%

Non cash bonus: $596k (% change on 2008) 6.4%

Total comp: $802k (% change on 2008) -63.4%

Junior portfolio manager

Base: $161k (% change on 2008) 44.8%

Cash bonus: $267k (% change on 2008) -27.2%

Non cash bonus: $275k (% change on 2008) 172.5%

Total comp: $407k (% change on 2008) -22.6%

Source: Institutional Investor

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