"Salaryman with Ronaldo-level Pay"... Fund Managers' Value Soars Amid Talent Competition

Voices are emerging that the excessive talent competition in the global hedge fund industry has driven fund managers' salaries to unsustainable levels.

According to Bloomberg on the 8th (local time), Paul Marshall, chairman of Marshall Wace, the largest hedge fund firm in the UK, said at an investment event held in Hong Kong that "the rise of fund of funds has reshaped the entire hedge fund industry, resulting in fund managers being offered absurd amounts," adding, "the value of fund managers has soared to levels comparable to football player Cristiano Ronaldo."

Saudi Arabian professional football Al Nassr Cristiano Ronaldo. / Riyadh AFP=Yonhap News Photo by AFP

A fund of funds refers to a fund that reinvests in other funds that invest in stocks or bonds, rather than directly investing in stocks or bonds itself.

Chairman Marshall pointed out, "Everyone wants to have Ronaldo on their team, but there is not more than one Ronaldo," and "yet all (fund managers) are receiving compensation at the same level as Ronaldo."

He said, "The hiring practices on fund of funds platforms are like mass-producing chickens in a factory," adding, "This is not the right way to build an industry for clients."

At the event, Chris Gradel, co-founder and CEO of Hong Kong-based private equity firm PAG, expressed a similar view. CEO Gradel mentioned that some employees in his hedge fund division were offered eight-figure incentives by competitors, stating, "Even if this is temporary, it is very wrong," and "It may be good for certain individuals, but it is not good for clients or the industry."

This content was produced with the assistance of AI translation services.