How much do portfolio managers make at hedge funds?
As of Jun 10, 2024, the average annual pay for a Hedge+Fund+Portfolio+Manager in the United States is $127,751 a year.
As of Jun 10, 2024, the average annual pay for a Hedge+Fund+Portfolio+Manager in the United States is $127,751 a year.
The estimated total pay for a Hedge Fund Manager is $225,573 per year, with an average salary of $131,993 per year. These numbers represent the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users.
The average annual base salary for a portfolio manager in the U.S., as of December 2023, was $128,350, according to Glassdoor.
Average Citadel Portfolio Manager yearly pay in the United States is approximately $236,000, which is 155% above the national average.
Hedge fund managers typically earn above-average compensation, often from a two-and-twenty fee structure. Hedge fund managers typically specialize in a particular investment strategy that they then use to power their fund portfolio's mandate for profits.
Who Is the Richest Hedge Fund Manager? Ken Griffin of Citadel is both the richest hedge fund manager and the highest paid. In 2022, he earned $41. billion, and by the beginning of 2023 his net worth was estimated at $35 billion.
The money is a big draw as well: if you're at the right fund and you perform well, you can earn into the mid-six-figures, up to $1 million+, even as a junior-level employee. The top individual Portfolio Managers can earn hundreds of millions or billions each year.
Long and stressful days
The day for hedge fund managers is very long and full of stressful hours.
Pay at this level depends almost 100% on performance, which means that PMs could make a few hundred thousand USD… up to $1 million or even $10 million+. On average, though, a PM at a mid-sized fund that performs decently might earn between $500K and $3 million.
What is the highest salary for a portfolio manager?
Long hours, intense competition, divorce, stress, and even substance abuse – these are some of the issues that can typically affect portfolio managers.
The portfolio manager track can lead to management positions with broader responsibilities, such as a managing director or head of portfolio management.
What is the highest salary at Citadel? The highest-paying job at Citadel is a Managing Director with a salary of $731,120 per year (estimate). What is the lowest salary at Citadel? The lowest-paying job at Citadel is a Receptionist with a salary of $51,293 per year (estimate).
Many PMs work around 60 hours per week (or more), but they're “on call” all the time because the markets are always moving, and potential crises are always waiting.
Portfolio managers are in high demand, too. The BLS projects employment for financial managers to grow by 16% from 2022 to 2032. This rate is much higher than the projected 3% growth for all occupations during that time frame.
In fact, he owned and managed his own hedge fund before he took charge of Berkshire Hathaway. He introduced Buffett Partnership, an early version of hedge funds, in 1957, and it was wildly successful. In the 12 years he managed the fund, Buffett delivered compounded annual returns of 31.6 percent before fees.
However, because hedge funds are typically much higher-risk portfolios that are more actively traded, they require close monitoring and a greater amount of day-to-day hands-on management and decision-making regarding investments.
At smaller, single-manager funds, the average might be 10-12 hours per day, for a total of 50-60 hours per week (weekend work is rare). As you move to larger, multi-manager funds, the hours and stress get worse, so the average may be more like 60-70 hours per week.
Due to the long-term aggregate investment returns of Renaissance and its Medallion Fund, Simons was described as the "greatest investor on Wall Street," and more specifically "the most successful hedge fund manager of all time".
What degree do most hedge fund managers have?
Hedge fund managers often have a master's degree or even a Ph. D. in finance, mathematics, economics, financial engineering, quantitative finance, programming, marketing, or business administration. Others have advanced degrees in a specialty such as engineering or accounting.
Becoming a hedge fund manager is challenging due to the high level of education, experience, and skills required. Hedge fund managers must possess strong analytical thinking, communication, attention to detail, and mathematical skills.
Hedge funds employ some of the best-paid business professionals anywhere, but landing your first job in the industry is no cakewalk. Building a hedge fund career takes determination, networking stamina, and a fierce competitive streak. Here are some steps to help get you to that interview and then land that job.
A lot of my time is then spent monitoring markets and reading research produced by banks to formulate new investment ideas. I also check the scanners a lot, which are what we use to identify trades. Throughout the day, I'm checking my risk levels and discussing the need to make changes, or not, with the senior PM.
But even after that first year you get up to speed, the stress/hours don't end. If you are at a fund like a multimanager hedge fund where every day you either make money or you don't and your investment horizon is very short, the job will be extremely stressful.
