If you’re working for a hedge fund it pays to be in the partnership. Like the senior ranks in private equity firms, who get a slice of the truly lucrative carried interest, partners – or members – in hedge funds divide the vast majority of annual profits between them.
So it is with Finisterre Capital, the $2.1bn emerging markets focused hedge fund that has been on something of a hiring spree this year and has just quietly released its annual accounts on Companies House.
It posted profits of £7.3m for the year to 31 December 2013, up from £6.3m the previous year. Understandably, this has benefited the partners and one individual in particular, who received the biggest portion of profits at £5.2m. Despite only a marginal uptick in profits, the previous year £2.2m was awarded to the highest paid member.
And what of the rank and file? Well, it seems they are less well off than the previous 12 months. Finisterre Capital paid £9.6m to 27 employees working in what it describes as ‘finance and administration’ roles in 2012 – or an average of £355k – compared to £6.6m for 23 this year, or a mean payout of £275k.
Finisterre, which is majority owned by Principal Global Investors, has been successful in luring some senior investment staff throughout this year. In June, Kevin Bespolka, who was previously managing director and head of global macro at Napier Park Global Capital, joined as a portfolio manager.
David Burnside, who was previously head of alternatives at BlueBay Asset Management, also joined as a partner and head of business development. Finisterre also brought in Bartosz Pawlowski, who was global head of emerging markets strategy at BNP Paribas, as portfolio manager on its debt fund.
Finisterre currently has 26 people regulated by the Financial Conduct Authority, up from 22 at the beginning of this year.