Former hedge fund trader here at a big fund: these numbers are correct, but not representative. There are thousands of funds out there. Some huge and killing it

Former hedge fund trader here at a big fund: these numbers are correct, but not representative. There are thousands of funds out there. Some huge and killing it, but most are small that aren't. The costs to launch and run a fund are huge, which really eats into the take home of the smaller operations. In large shops, a PM will often take half of what he earns for the manager (i.e. not for the LPs). So if he runs a book of $100m and makes 25% (so $25 pnl), the manager keeps (historically) 20% so $5, of which $2.5 might go to the PM. There are definitely guys who are making tens of millions, and obviously the guys that everyone reads about who are making much more. But the vast majority of front office personnel who are working at funds are making sub $500k/year.