Fund managers react during a boxing match at the 'Hedge Fund Fight Nite' charity event in Hong Kong October 30, 2008.
High fees and lackluster performance are forcing some clients to evaluate whether they should leave their money with the once mighty kings of Wall Street or take it elsewhere.
Just last week, investment icon Warren Buffett urged investors to seek out alternative investment venues.
"When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients," Buffett said in his most recent annual letter to shareholders.
But the tough environment has not had a profound effect on how much people in the industry expect to get paid.
According to the 2017 Hedge Fund Compensation Report, which aggregates compensation information from "hundreds of portfolio managers" from over 200 firms, "the level of earnings anticipated by hedge fund professionals does not reflect" a poor environment.
The report shows that only 19% made less than last year, while 28% made the same. More than a quarter (27%) made between 16% and 100% more:
Hedge Fund Compensation Report
According to the report, earnings in the highest bands stayed strong, but that might have been at the expense of lower paid employees, such as those making $200,000 and less. They witnessed a decrease in earnings that "mirrors the increases" at the top.
According to the report, 3% of respondents made more than $1 million, while 10% made between $500,000 and $1 million. More than a third made $250,000 to $500,000.
It's worth noting here that many hedge fund managers earn much more than $1 million, and several earn more than $1 billion a year. However, those who participate in these kinds of survey typically skew younger, and wealthier individuals might not disclose their information.
In addition, it is important to note that there are thousands of hedge funds, with a large number of small funds and a handful of industry giants. Some of these small funds might be staffed by a handful of employees.
Hedge fund compensation report