Hedge Funds

Talent hunt raises comp by 20%

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With many hedge funds generating lackluster returns this year, they are paying up to bring on veteran portfolio managers and senior analysts with an eye to improving performance in 2007.

"It's been a year of mediocrity, and chief investment officers will see if they can upgrade [performance] to separate themselves from the rest of the pack," says Steve Diamond, a managing principal at S. Diamond Group in Fairfield, Conn.

Many compensation packages negotiated in September to bring on highly rated senior analysts and portfolio managers trended up 15% to 20% over last year, a number of recruiters say. Compensation for