Hedge Fund Report

2010 Hedge Fund Report: Human Capital and Pay Practices

This unique 250 page report provides participants not only perspective on the architecture of key human capital and compensation practices in the hedge fund industry but has over 100 pages of information on the pay levels for 28 different jobs within the hedge fund industry with information covering positions from firms with less than $100 million of AUM to firms with over $6 billion AUM.


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Survey Price: $2,400 USD
Survey Webinar: Tuesday, January 11, 2011, 11 AM EST


More About This Report


2010 Key Findings

  • Pay levels for 28 key positions from the CEO to the receptionist within hedge funds.
  • The characteristics of the ownership, transfer of ownership, and valuation of shares within the hedge funds.
  • Firms continue to add capacity in the global macro, long-short equity, and multi-strategy areas.
  • While 29% of Respondents decreased their investment staff, only 10% expect to decrease staff in 2011. 54% expect to increase investment staff.
  • When new partners are added to a firm, 70% are added on a discretionary basis.
  • 56% of Respondents always require partners to commit personal capital to a fund managed by the firm.
  • 86% of Respondents are not considering changes in their fee structure.
  • 64% of Respondents outsource some part of accounting. Technology is entirely outsourced by 36% of firms.
  • 61% of Respondents do not have a management succession plan.

Section I: Compensation Design (“How”)

This part of the survey is truly unique and can be completed online. This survey is the first of its kind to request information on the intended design of rewards programs and the level of success of the various types of programs from base salary, profit sharing to group health plans. This is information that establishes the intended design of the actual programs.

The survey tool employed uses employs multiple layers of security to make sure your data remains private and secure:

  • A third-party firm conducts daily audits of the tool’s security, and it resides behind the latest in firewall and intrusion prevention technology.
  • For additional security, we have added SSL (Secure Sockets Layer) protection, so that your data is collected in a totally encrypted environment.

We anticipate that this section will take thirty minutes to one hour to complete. You can re-enter the survey at any time to complete any missing responses or update your entries until the closing date. To do this click the ‘Next’ button at the bottom the page to save your existing answers and simply return to the questionnaire using the original link when you are ready.

The system uses a cookie to save the response by page (not by specific question). If you exit the survey early, then you must come back to the same computer and use the same browser in order to pick up and finish.

NOTE: Cookies must be enabled. The cookie placed tracks the page where you exited. If your browser is set to dump cookies each time it is closed, the cookie will be refreshed. A new or blank survey will open every time the survey is accessed.

>> Click here to get started


Section II: Compensation Levels (“How Much”)

Section II of the survey collects competitive information on pay levels. This information will help you establish pay levels that retain your best executives and employees yet keep your firm within its budget.

This part of the survey is in Excel format.

Please download the “Compensation Data Collection Sheet.xls” by clicking on the following links:

Please save the completed file with your company’s name and e-mail back to claudia.defrancisco@grahall.com.

We thank you for your participation.


2010 Position Descriptions

Investment Positions

Chief Executive Officer
One or more top level partners that provide overall firm leadership, focusing on investment activities. Typically serves as Chief Investment Officer.  Initiates and manages hedge business activities, from business strategy to product origination.

Chief Investment Officer
One or more top level partners that provide overall firm leadership, focusing on investment activities. Typically serves as Chief Investment Officer.  Initiates and manages hedge business activities, from business strategy to product origination.

Senior Portfolio Manager
Manages smaller hedge fund or provides support to a Senior Fund Manager. Responsible for implementing policies and procedures approved by senior management. May be involved in identifying appropriate investments in line with fund strategy. Typically has around 10 years experience in asset management with 2 to 5 years experience in hedge funds.

Junior Portfolio Manager
Provides support to more senior fund managers, assisting with investment activities and producing research for the hedge fund team.

Senior Trader
Manages smaller hedge fund or provides support to a Senior Portfolio Manager. May be involved in identifying appropriate investments in line with fund strategy. Typically has around 10 years experience in asset management with 2 to 5 years experience in hedge funds.

Junior Trader
Provides support to more senior traders, assisting with investment activities and producing research for the hedge fund team.

Senior Analyst           
Perform basic investment and/or research to support Fund Managers. Typically has around 10 years experience in asset management with 2 to 5 years experience in hedge funds. They have a college degree or equivalent business experience.

Junior Analyst
Provides support to senior analysts, assisting with investment activities and producing research for the hedge fund team.

Finance Positions

Chief Financial Officer
This senior level professional heads up finance/accounting for the firm and its limited partnerships. The position also may have responsibility for the business operations of the firm, such as human resources, compliance and technology.  At larger firms, the CFO may report to the COO.

Controller
This professional performs accounting, financial monitoring, reporting and similar services. Reports to the Managing General Partner or COO or CFO,  depending on the size of the firm.

Financial Officer / Manager
This position assists the Controller and/or CFO with their various duties and responsibilities.

Fund Accountant
Predominantly an administrative position, responsible for maintaining administrative records and working on reconciliation statements for funds. Assists in preparation of fund portfolio statements and profit & loss reporting on funds.

Senior Accountant
Performs at least two accounting functions, such as accounts payable, accounts receivable, or bookkeeping.

Junior Accountant
Junior member of the finance team, typically would not be qualified, responsible for day-to-day maintenance of accounts records.

Legal Positions

Chief Compliance Officer
Responsible for ensuring that the firm is in compliance with all relevant regulations. Ensures adequate monitoring of investment activities, undertakes audits of investment procedures and advises CEO/ Managing Partner and Legal team on all compliance related issues.

Legal/General Counsel
This professional is responsible for coordinating legal work by outside counsel. It also may provide legal advice on fund formation, entering and exiting portfolio companies, and assisting portfolio companies.

Risk Management Positions

Risk Management Officer
Responsible for ensuring that the firm is in compliance with all relevant regulations. Ensures adequate monitoring of investment activities, undertakes audits of investment procedures and advises CEO/ Managing Partner and Legal team on all compliance related issues.

Risk Manager
Responsible for ensuring that the firm is in compliance with all relevant regulations. Ensures adequate monitoring of investment activities, undertakes audits of investment procedures and advises CEO/ Managing Partner and Legal team on all compliance related issues.

Information Technology Positions

Chief Technology Officer
This position is responsible for purchasing and operating computer networks and various software and hardware. It also is responsible for communications systems (phones, etc).

IT Manager / Professional
Works with Head of IT or outsourced IT support to manage the firm’s IT applications and infrastructure. In smaller firms may be the most senior IT position.

Marketing Positions

Marketing Director / Manager
This professional is responsible for fund-raising and other limited partner relations, including quarterly reports and regularly scheduled meetings.

Business Development Officer
Lead role in communications with both investors and press, communicating group’s strategy , fund performance and messages as agreed by the CEO/ Managing Partner and senior management team. Role may be taken by a senior partner in the business and may also incorporate the marketing function.

Investor Relations Officer
Provides support and assistance to the Investor Relations Director in communicating with fund investors, both regular and ad hoc.

Marketing Associate
Supports the Head of Marketing in fund-raising and other limited partner relations, including quarterly reports and regularly scheduled meetings. In smaller firms may be the only marketing role.

Administration / Support Positions

Chief Operating Officer
This position normally exists at the larger private equity firms; the COO is responsible for the non-deal-making aspects of the organization, including internal business operations such as human resources, finance/accounting, compliance, and technology. The position also may oversee fund raising, marketing, and communications.

Executive Secretary
This position provides full secretarial and administrative support to the CEO/ Managing Partner and other Senior Partners including setting up of meetings and conference calls; ordering and receiving supplies for the office; putting together numerous reports; sending out mailings; and responding to various other requests.

Administrative Assistant
This position supervises support staff and oversees routine administrative functions of the firm.  Reports to the Managing General Partner or COO or CFO, depending on the size of the firm.

Receptionist
Responsible for reception duties for the firm.


2010 Survey Participants & Sources

Compensation information was collected on a managed sample that accurately reflects a significant portion of the hedge funds in the United States. We started with an invited population of over 1,000 hedge fund firms with AUM covering the entire range of firms ($15 million to $50 billion).

Performance data for this report was obtained in part from public sources and leading independent providers of hedge fund performance statistics such as Barclay’s Hedge Fund reporting, responses to survey questionnaires, and Grahall Consulting Partners client files.


Pricing Information

Title Price
2010 Hedge Fund Report: Human Capital and Pay Practices $2,400

Contact Information

Michael Dennis Graham
michael.graham@grahall.com, (917) 453-4341