Total average compensation for managers at equity hedge funds is projected to fall to $ 540,000 from $ 560,000 in 2015, according to interviews with over 1,000 finance professionals globally. That is still higher than the $ 510,000 that equity hedge fund managers were paid on average in 2014, according to the report.
Meanwhile, at fixed income-focused hedge funds, average total compensation is projected to fall to $ 580,000 in 2016 from $ 610,000 in 2015.
Hedge funds have been under pressure to reduce fees after a year that saw many funds lose investors’ money. The Lyxor Hedge Fund Index was down by 1.5% in the year to December 6. High-profile managers including Moore Capital and Brevan Howard Asset Management have offered fee breaks to investors over the past year.
The Greenwich report noted that some hedge funds “are feeling extreme pressure following several consecutive years of disappointing performance”, which was pushing down pay at many firms.