Monday, May 29, 2006

Want to make a ton of money? Be a Hedge Fund Manager

I found this article recently stating that the top 25 hedge fund managers make an average of $350 million a year. The exact number is $363 million, but what's 13 million dollars at that point? If you don't know, a hedge fund manager is basically someone who manages a large, expensive stock portfolio. They decide what to buy and what to sell. I always knew this was a high paying job, as they are in the sector that we write software for, but I didn't know it was enough for each one to feed a small continent. A few other things to emphasize from the article:
  • $363 million a year. Seriously, let that set in.
  • The top hedge fund manager made $1.5 billion dollars last year.
  • Despite being overpaid, at least the salaries are somewhat performance based. Thier starting salary is based on how much money the fund takes in (the manager is likely to get about 2%, and on average each of the 8000 hedge funds takes in about $150 million a year). But the real money comes from the bonus the manager will make off the fund's profits (anywhere between 20% and 45% of a shit ton of money)
So of course after this article, I looked around for how one becomes a hedge fund manager, but have yet been unsuccessful. Should anyone else fid out this information, feel free to let me know.

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