Even in hedge funds there are haves and (comparative) have nots. Capula Investment Management is a case in point.
The London hedge fund has just released its accounts for the 12 months ending March 2016. Someone there got paid £34m. Another 26 people got paid an average of £3.9m. Meanwhile, a further 90 people at Capula Investment Services received an average of £317k.
Capula doesn’t say who got the £34m, but it seems reasonable to assume that it would have been Masao Asai or Yan Huo, the fund’s co-chief executives and co-founders. The recipients averaging £3.9m each were the firm’s 26 other partners. And the 90 people averaging £317k were all the non-partner traders and analysts and the support staff.
Capula’s generosity should be of interest to traders in investment banks, whom it has a habit of hiring. Capula employs a relative value strategy. Its main fund – the Capula Global Relative Value Master Fund – seeks to exploit anomalies in pricing across macro products. Profits at Capula Investment Management rose 40% in the year to March 2016, while those at Capula Investment Services rose by 12%.
Capula added four people to its London registered staff last year according to the Financial Conduct Authority Register. It may yet add more in 2017: it’s preparing to move into big new offices overlooking Buckingham Palace.