Even When Loosing a Lot Money Hedge Fund Managers Cash In

“Hedge I win, tales you loose!” Let me elaborate on this one.

hedge-fund-earningsMost hedge fund managers are paid both a percentage of the total assets that they manage each year, and a percentage of the profits they make from investing your money.
This arrangement enables hedge fund managers to get paid a lot of money each year just for having a lot of money to invest even if they lose money for their investors.

Hedge fund managers will still earn big bucks this year even as their funds lost 1.6 percent on average through Oct. 31, while assets under management slipped to $2.9 trillion from $3 trillion globally in the third quarter, HFR said.

Top 10 Highest Earning Hedge Fund Managers 2015

Topping the hedge fund biggest earners list is Kenneth C. Griffin, who started by trading convertible bonds out of his dormitory at Harvard. He took home $1.3 billion last year. James H. Simons, a former National Security Agency code breaker who makes billions of dollars every year from his hedge fund, Renaissance Technologies, earned $1.2 billion. And Ray Dalio, who runs the world’s biggest hedge fund, Bridgewater Associates, with more than $170 billion in assets under management, reaped $1.1 billion.

Ken Griffin, chief executive officer and founder of Citadel LLC, left, and Henry Kravis, co-chairman of KKR & Co., converse during the Museum of Modern Art's "Party in the Garden" at the museum's garden in New York, U.S., on Tuesday, May 21, 2013. The event raised more than $4.1 million. Photographer: Amanda Gordon/Bloomberg via Getty Images

Money managers at hedge funds are expected to see their pay fall by 9 percent this year, caused by worsening returns to hit bonus payouts, industry survey shows that average hedge fund lost 1.6 percent this year through  Oct. 31.

Bill Ackman

Bill Ackman

Through Oct. 27, Pershing Square, the long-short hedge fund managed by Bill Ackman, had fallen 3.8 percent for the month, according to its website, and was down 15.9 percent this year. Through Oct. 26, Glenview Capital, the health care-oriented fund run by Larry Robbins, was down 7.3 percent for the month and 20.25 percent for the year.

 

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