how much do hedge fund managers make
The hedge fund manager will take a significant percentage of the gains of the fund for a year -- sometimes 20 percent or more depending on the reputation of the fund manager. Often called the incentive fee, this encourages the fund manager to perform well and make good investments. If the hedge fund manages $100 million and grew it to $150 million, the fund manager can earn $10 million or 20 percent of the $50 million gain. This $10 million is far more than the $3 million the same fund would collect from a 2 percent management fee.