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May 26, 2006

Big Bucks, No Worries

Institutional Investor's Alpha magazine has out its latest annual list of the top-earning hedge fund managers. This year there are two managers who cracked the $1-billion comp barrier, up from one last year. Just in case you're curious, it takes annual comp of $300mm to make the top ten.

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Comments

You wonder where all the people that complain about CEOs being over-paid are. I guess they are just behind the curve?

"Six managers this year make the top 25 despite generating single-digit returns"

Wow, that's putting the reward back into risk/reward. I like how Ken Griffen has become Kenneth now that he's a billionaire. I look forward to becoming Richard someday :)

Keep in mind that these guys typically have a majority of net worth in their own funds, and personal return on assets is included in the calculation. It's easier to put up eye-popping payout numbers when you're your own biggest customer.

IF the fund managers make that much, how much
profit is left over for the fund owners ?

Dick, I mean Richard, that's the trouble with having a name like Paul. There's no lexical upward mobility.

Paul, what about the downgrade to Paulie (as in Shore)?

You can always go for Sir Paul... or Saint