Hedge Funds

Getting at least a sliver of the pie

by

Registration filings show
few are spreading the wealth

When a rumor spread in mid-May that three employees had spun out of $7.5 billion Amaranth Advisors due to dissatisfaction with the firm's compensation scheme, the firm took the unusual step of issuing a special letter to investors to debunk the claims. The gossip was that Amaranth had alienated these employees by failing to share equity, and investors had been calling to learn the truth.

In the firm's letter, managing director Steven Johnson noted that the firm had granted ownership interests to "a number of" senior employees