Hedge-fund marketers can expect to pocket 15% to 20% more in total pay this year than last, according to a report released last week. In addition, hedge fund hiring for several types of positions will increase in the coming year.
The analysis, conducted by Alpha Search Advisory Partners, a Roslyn, New York-based executive search firm for the alternative investment industry, found that higher inflows correlated with higher pay in 2010 and will do the same in 2011.
In a recent companion survey, Alpha Search polled 166 vice president and senior vice president level marketers across a variety of hedge funds. Respondents had an average of 12 years marketing experience.
The firm found that average bonus pay for marketers increased to $368,000 in 2010, up 29% from 2009. The average base pay for the same group increased to $199,000 up 13% from 2009. That increase is likely to hold steady for 2011 pay.
"From 2010 to year-to-date, we've seen an increase in base salaries," Bob Olman, managing director of Alpha Search, said in an interview. "More money is flowing into funds and asset gatherers get paid as a result."
Moreover, firms are looking to hire more investor relations and hedge fund marketers with five to 10 years of experience in the coming year, according to Olman. His practice has been busy filling marketing spots at firms with up to $2 billion in assets, he said.
Firms will also increasingly hire what Olman calls "product managers" or "product specialists" who deal with existing clients and can fill in for portfolio managers in meetings with them. A product manager will be someone who's a subject-matter expert in the investments and portfolio. They may have been a trader or analyst, or they may have spent time in investor relations dealing with due diligence on companies and answering question from investors. They'll also have had some experience in project management.
"Their role is the hub for all the spokes," Olman said. This position can fetch between $200,000 to $600,000 in total yearly pay, and Olman expects the demand to increase for the role at any mid-sized or larger alternative asset manager.
Olman expects hiring for global macro strategy, commodities and managed futures, as well as in asset-backed securities. "In other words," he said, "the quants."
Write to Julie Steinberg at Julie.Steinberg@dowjones.com
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