Hedge Fund Compensation

Earlier this week, I asked, "What’s Wrong With Billionaire Fund Managers?"

We noted the very top % of this profession carried enormous compensation for those Alpha creators who earned tremendous returns for their partners. Most of the top earners are also have very significant holdings in their own funds.  They not only get paid for taking risks with OPM, but with their own money at risk as well.

At the same time, if you really want to be upset at enormous paydays, the collection of thieving former CEOs who helped destroy shareholder value then parachuted out with 100s of millions of dollars were better targets for your ire.

All About Alpha looked at manager compensation from a different perspective, and asked Is high hedge fund compensation really that new?

Their approach was from a different angle, based on both earnings size and source

1. Appreciation vs. Compensation
2. Paper vs. Cash
3. Income vs. Options
4.  “Creating” vs. “Speculating”

Here is the quadrant they put together:

2by2

In today’s NYT, Harvard prof Greg Mankiw also looks at wealth disparities, using Lloyd C. Blankfein, chief executive of Goldman Sachs and Bill & Hillary Clinton as examples (The Wealth Trajectory: Rewards for the Few). 

Note to Professor Mankiw: From a statistical perspective,  perhaps another example from a pool of candidates greater than three (living former US Presidents) or one (the most recently retired President) might be more suitable, informative and tad a less political. That choice tainted an otherwise fine article…

Exec_pay

Courtesy of NYT

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Previously:
What’s Wrong With Billionaire Fund Managers?    http://bigpicture.typepad.com/comments/2008/04/whats-wrong-wit.html

Source:
Is high hedge fund compensation really that new?   
All About Alpha, 17 April 2008
http://allaboutalpha.com/blog/2008/04/17/is-high-hedge-fund-compensation-really-that-new/

The Wealth Trajectory: Rewards for the Few   
N. GREGORY MANKIW
NYT, April 20, 2008   
http://www.nytimes.com/2008/04/20/business/20view.html

Category: Corporate Management, Wages & Income

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Category: Digital Media, Music

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Category: Contrary Indicators, Economy, Markets, Psychology, Technical Analysis, Trading

Wall Street Political Donations

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Category: Commodities, Credit, Energy, Finance, Markets, Trading

Aggregating the Aggregators

Over the past few weeks, I have featured several economics/market web aggregators. They all tend to have a focus on business, though many come from overall aggregators that have tabs for  different topics.

Since I like to recursively get all meta on you, here’s my aggregation of all a few dozen blog aggregators, primarily in the Business, Tech and Video space:

(Let me know in the comments which ones I missed, if any . . .)

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click on any of these to be taken to their site
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Abnormal Returns
Abnormal_returns

Alltop
Alltop

Bloglines
Bloglines


Blogniscient
Blogniscient

BlogRolling

Blogrolling

the DailyTube
Daily_tube

Digg Business/Finance
Digg


Economics Roundtable

Economics_roundtable

Feedbite
Feedbite

> 

Read More

Category: Web/Tech, Weblogs

Google’s Black Box

Category: Earnings, Web/Tech

Disappearing Economic Indicators

Category: Data Analysis, Employment, Psychology, Taxes and Policy, Wages & Income

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Category: Commodities, Psychology