Hedge fund pay is doing very well after a bumper 2025
The hedge fund industry had a standout 2025. Goldman Sachs noted that the industry had “momentum” after a second consecutive year of “unprecedented success outperforming their benchmarks.” The industry also reached a record assets under management above $5tn for the first time in its history. But how well were the people who work in hedge funds paid for their work?
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Our Compensation & Lifestyle Report 2026 surveyed almost 3,000 professionals worldwide in financial services, including those who worked in hedge funds, based in global centres including London, New York, Singapore, and Hong Kong.
Pay for the professionals who worked in the hedge fund industry was much better than in other areas of financial services. Compensation across all levels was up, with all ranks received significant uplifts – analyst, associate, vice president, and director-equivalent roles all saw salaries and bonuses increasing year-on-year.
At the very top of the pyramid, for managing director (MD)-equivalent roles, bonuses also rose, by 12%, as did salaries, which were up by 13%. Luckily, MD-equivalent roles in hedge funds are all portfolio managers, which derive the majority of their compensation based on their trading performance. This often makes up a sum several times their salaries.
As with titles at private equity firms, the hierarchy in hedge funds doesn’t always match the titles in banks. The levels detailed in the chart are therefore equivalent, rather than the exact nomenclature used in funds.
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