In a down year, hedge fund CEOs did just fine
Source: CBS News
The top 25 hedge fund managers earned an eye-popping $11.6 billion in compensation in 2014. However, that was only about half as much as they earned the prior year and roughly in line with their pay at the height of the financial crisis in 2008, according to an annual ranking released Tuesday by Institutional Investor's Alpha magazine.
To make matters "worse," the trade publication notes that at least 12 of these 1 percenters' funds posted gains that were eclipsed by the S&P 500 (SPX), which tallied a 13.7 percent return in 2014. As The New York Times noted, this was the sixth consecutive year that hedge funds have underperformed the broader market.
While many mutual fund mangers and pension funds follow the broad market index, it's not as important in the hedge fund industry, according to the Alternative Investment Management Association (AIMA). Hedge funds are marketed to sophisticated high-net worth individuals and institutional investors, and they're subject to less regulation than other types of investments.
Read more: http://www.cbsnews.com/news/in-a-down-year-hedge-fund-ceos-did-just-fine/
The top 25 hedge fund managers earned $11.6 BILLION..... which is an average of $464 MILLION each. THAT is fucking insane.