The large investment banks are about to wrap up 2015 with their quarterly results in the next few weeks, but for prominent hedge funds – most of which are not publicly listed – January is a time when they quietly release accounts that relate to almost 12 months ago.
Nonetheless, they provide an insight into how much they’re paying (which can be substantial) and whether they’re hiring and firing. After a tough year for the industry, it seems that most hedge funds are still expanding and paying out big packages.
Tudor Capital’s UK partnership published its accounts in 2015, posting profits if $59.7m – down from $159m in 2014.
But for the rank and file staff at the hedge fund, it was year of expansion. Tudor's recently posted accounts, for the year ending March 2015, show that the group and increased headcount in Europe to 80 people – adding 10 investment management staff over the past year. While its 21 members shared $59.7m, its regulars staff had a pot of $20.5m. This works out as an average of $410k per head.
Marathon Asset Management:
Marathon has just five partners in the UK, and it paid them a hefty £120.6m ($174.9m) in the year ending March 2015 – an increase from £39.9m in 2014. On a per head basis, this means $34.9m per partner. The highest paid member – which is likely to be a corporate entity paying out its rank and file staff, rather than an individual – got £43.2m. This still leaves a healthy pot to be divided among its other partners.
Marathon has 80 staff elsewhere in the organisation, and paid out £35.7m ($51.8m). This works out as $647.5k per head. Marathon is a big payer.
Brevan Howard attracts headlines, but in reality some of its smaller peers pay out more. On a per head basis, average pay among its members was $3m for the year ending March 2015, while its rank and file staff received £159.4k ($231.3k) each down from £180.3k in 2014.
Brevan Howard has also been cutting staff. Even before it made redundancies at the end of last year, 30 of its staff had left. In the year ending March 2015, the partner pool shrunk from 45 to 37 members.
Cheyne Capital Management:
Cheyne posted net profits of £16.3m for the year ending 31 March 2015, down from £25.2m in 2015. Senior investment staff at the hedge fund have been departing in recent months, as Cheyne looks to pare down its sizable partnership. It had 54 members at the end of March, and spent £40.2m in remuneration for them over the period. This works out as £744k ($1.1m) per head.
Oxford Asset Management:
Oxford Asset Management was expanding in the 12 months to 31 March. It had 68 staff, up from 59 in 2014, and paid them an average of £211.7k ($308.2k). Profits surged at the partnership, from £1.8m in 2014 to £67.9m last year and most of this (£62.9m) was divided up between its members.
Pelham Capital Management:
Pelham employs 13 people in London, according to its latest accounts for the year ending March 2015. It paid them £3.1m, or £238.4k ($346.1k) a head. Profits at the partnership tumbled from £131.2m in 2014, to £16.3m for the 12 months to 31 March 2015.
Odey Asset Management:
Odey’s profits shrunk to £84.1m to £174.2m in 2014, according to recently filed accounts for the 12 months to 5 April 2015. The highest paid member – presumably Crispin Odey, received £31.8m ($46.2m), and the remaining 21 partners earned an average of £2.5m each.
Outside of the senior ranks, Odey spent £20.6m on its staff, and increased headcount by nine people over the course of the year. This works out as an average of £312.1k ($454.5k) per head.