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Almost all of these Big money guys have earned their following; the following that pays them the Big Bucks.
So one Cannot begrudge the agreement they make with their also-wealthy clients.
Being taxed at the Cap Gains rate however, when it's your Clients money but the manager's Salary/Fees, I feel is decidedly Not in a societies best interest.
In addition to Not getting Cap Gains rate, I am for a 50% Bracket for earners over $10 Million.
http://www.nytimes.com/2011/04/01/business/01hedge.html
Ten years ago, when the hedge fund industry was much smaller than it is today, it took 25 hedge fund managers to earn a combined annual payday of $5 billion. Last year, it took only one.
Even Funds That Lagged Paid Richly
By JULIE CRESWELL
March 31, 2011
I don't think many here know what making a few Billion a Year - not just over a lifetime - really is so:
So one Cannot begrudge the agreement they make with their also-wealthy clients.
Being taxed at the Cap Gains rate however, when it's your Clients money but the manager's Salary/Fees, I feel is decidedly Not in a societies best interest.
In addition to Not getting Cap Gains rate, I am for a 50% Bracket for earners over $10 Million.
http://www.nytimes.com/2011/04/01/business/01hedge.html
Ten years ago, when the hedge fund industry was much smaller than it is today, it took 25 hedge fund managers to earn a combined annual payday of $5 billion. Last year, it took only one.
Even Funds That Lagged Paid Richly
By JULIE CRESWELL
March 31, 2011
John Paulson, who rose to fame in 2007 with a prescient bet against subprime mortgages, earned a record $4.9 billion in 2010 as a result of a big wager that his fund, Paulson & Company, made on gold. The metal soared last year, lifting the values of some hedge funds by more than 30 percent.
Last year was very lucrative for some of the biggest and best-performing hedge funds’ chiefs. Wealth was so concentrated that a mere 25 people pocketed a total of $22.07 billion, according to this year’s annual ranking by AR Magazine, which tracks the hedge fund industry. At $50,000 a year, it would take the salaries of 441,400 Americans to match that sum.
Hedge fund managers can still have Huge paydays even in years when their funds do Not perform well. That is because of the millions they earn in fees from charging state pension funds, college endowments and wealthy individuals to manage money. These fees are typically collected regardless of whether the firm has a profit or a loss.
“So many of these guys are killing it on the management fees,” said Bradley H. Alford, chief investment officer of Alpha Capital Management, which invests in hedge funds. “You can’t feel good giving 30% of your returns to some guy who was up single digits. That has to give you indigestion.”
In fact, the hedge fund industry as a whole did not do better than the stock market last year. The HedgeFund Intelligence Global Composite Index, which tracks nearly 4,000 hedge funds around the world, had a median gain of 8% in 2010, trailing the 11.7% in the MSCI World Index of stocks and the 12.7% rise in the Standard & Poor’s 500-stock index.
And this year’s list of top hedge fund earners includes a number of managers who pocketed hundreds of millions of dollars in Fees but produced only single-digit returns for their investors. AR Magazine arrives at the pay figures by estimating a money manager’s portion of fees along with the increase in value of personal stakes in the funds.
For instance, David Shaw of D. E. Shaw, a firm that uses complex algorithms to determine its investments, made the list with income of $275 million, even though his biggest fund returned a paltry 2.45% and over all the firm Lost 40% of its assets, the magazine said. AR Magazine said Mr. Shaw, who gave up day-to-day oversight of the funds in 2002, made the list because the firm charged a 3% management fee and took 30% of the investment gains. Mr. Shaw also has much of his own personal wealth tied up in the firm.
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I don't think many here know what making a few Billion a Year - not just over a lifetime - really is so:
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