Hedge funds have standard compensation: 2% administrative and 20% of profits. They don't get paid at all even when a year if profitable until they make up for past losses.
Those that make investors more wealthy are paid proportionally more.
I see no basis for your assertion.
RE: I see no basis for your assertion.
Going back to the basketball analogy, if player A is friends with the referee and has a silent understanding (wink wink) with him, then the game is different.
This is an open secret among a lot of my hedge fund friends and is no conspiracy.
Hedge-fund managers like DE Shaw have been tapping another source of information: the corridors of the Capitol.
You might want to ask yourself which hedge fund the recent dearly departed Obama economic adviser Larry Summers is very chummy to. If your answer is DE Shaw, go to the head of the class.
Hedge funds are finding that Washington can be a gold mine of market-moving information, easily gathered by the politically connected. The funds are hiring lobbyists — not to influence government, but to tell them what it’s going to do. Several lobbying firms are ramping up their “political-intelligence” units and charging hedge funds between $5,000 and $20,000 a month for tips and predictions.
It’s not an entirely fair game where they use pure quantitative research to make money my friend.
So yes, the pay is extravagant because they CAN be extravagant.
Am I tarring and feathering every hedge fund out there ? By no means. I don’t know them all. But with the few who I have friends working in, I am not entirely convinced they are playing a fair game.
We don’t live in an entirely free market system... GOVERNMENT and people working in it are heavily involved.
Come to think of it, it might always have been that way.