Hedge Fund Manager Rips On Banks For Paying Traders Way Too Much

bankers

The anonymous hedge fund manager ripped hard into bankers in an interview with FINS the other day.

When I heard even in 2008 or early 2009 that people I knew were getting hired to trade equity prop for Citi. . . I mean, are you serious? Hedge funds get bashed for 2/20 fee structure. But banks pay out 45% to 55% of revenues in comp in a good year. And in a bad year, investment bankers and traders still get paid a ton, as though somehow it would be beneath their dignity to earn much less than they did in a prior year.

The anonymous hedge fund manager, by the way, is the same guy who wrote the book “Diary of a Very Bad Year: Confessions of an Anonymous Hedge Fund Manager”. He works as an emeritus partner of a hedge fund that’s based outside of New York. He used to run its emerging markets investing.

And here’s something else he said during the interview that’s interesting:

The average trader or [portfolio manager], if hired as an SEC investigator, would probably have a list of half a dozen places he or she would immediately raid.

He thinks the SEC should hire more financial execs. Only one problem: Right now the SEC pays crap. Who wants to move from a high paying career to work as one?

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