Hedge fund compensation can be very attractive to put it mildly. Management fees can range from 1% to 2.5 % with management profit share being an additional 20% to 25%. Some very profitable hedge fund managers have been known to take up to 50% of profits. Top-tier funds have been known to pay their analysts base salaries of more than $250,000 plus attractive incentives for fund performance.
Very few financial companies compensate their employees as do hedge funds. It is common place to hear of successful traders making more than $500,000+ per year base. Hedge funds that have reputations for making a lot of money for their investors can literally carve out their own fees, compensation and bonuses with virtual autonomy. A quick look at the hedge fund jobs available at Hedge Fund Jobs Digest and one realizes why there is such intense competition for these positions.
Hedge fund jobs will continue to grow because wealth will always seek more wealth through methods not available through traditional investing. The ever growing list of strategies from high-risk to conservative will appeal to an even wider audience of potential investors.
Business students and graduates from highly-regarded universities will continue to be in high demand to fill hedge fund positions. For many hedge fund professionals already in the market, experience continues to be a sought after commodity that should be leveraged.