Hedge fund managers top among big earners

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The Independent Online
TWO hedge fund managers in London, Crispin Odey of Odey Asset Management and David Weill, earned more than dollars 15m each last year and are poised to make more this year, writes Rupert Bruce.

The sums earned by hedge fund managers put them among the City's highest known earners, dwarfing the dollars 5m achieved last year by partners in US investment banks such as Goldman Sachs.

David Morrison, Goldman Sachs' chief international economist and a limited partner, recently left to join Julian Robertson's Tiger Fund, based in the US.

Mr Odey, 35, and Mr Weill, who is also in his mid-30s, are the most successful of the select group of hedge fund managers in London. Mr Odey now has a little over dollars 900m under management, while Mr Weill is said to have about dollars 1bn. Both have been in business for a little over a year.

Hedge fund managers can earn such large sums because they are partly remunerated in performance fees, typically, of 15-25 per cent of any gain. They also take a fee of up to 2 per cent of funds under management.

The success of their funds in the past year in terms of performance and funds managed is attributed to low interest rates.

Raking in the profits, page 29