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Hedgies' Year-End Bonuses To Be "Substantially Lower" Than Expected

First Posted: 03/28/08 03:45 AM ET Updated: 05/25/11 01:15 PM ET

Globe And Mail:

The turbulence arising from this summer's global credit crunch is likely going to mean smaller bonus increases for U.S. hedge-fund traders.

Cash bonuses are expected to rise between 1 per cent and 9 per cent this year from last, says a study conducted by executive search firm Glocap Search LLC, Institutional Investors News and Lipper HedgeWorld. That projected tally is "a substantially lower increase than what we were predicting before the credit crunch this summer."

Losses related to soured U.S. subprime investments have led a handful of hedge funds to either halt redemptions or close operations. But it is still unclear how much pain hedge funds, a lightly regulated and opaque industry, have suffered since the subprime fallout roiled equity markets and squeezed liquidity this summer.

Read the whole story: Globe And Mail

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Filed by Michelle Kung  |