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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