Compensation for portfolio managers in London’s equities industry continues to show a wide dispersion between long-only and hedge fund strategies, with potential pay packets for the latter far in excess of the former, according to a report by eFinancial Careers.
According to data from recruitment consultancy Octavius Finance, senior long-only equity portfolio managers can earn up to £600,000 ($800,000) in total compensation, with pay typically structured around a combination of base salary, performance-linked bonuses and profit attribution. At more junior and mid-levels, total compensation ranges broadly from around £75,000 to £300,000 depending on experience and mandate size.
Octavius noted that pay at the upper end is closely tied to individual profit and loss generation, with the most lucrative roles concentrated in European and global generalist strategies. However, it added that the number of such roles has declined in recent years amid the rise of passive investing, which has reduced the share of capital allocated to active stock pickers.
Within hedge funds, compensation structures remain more heavily skewed toward performance. Experienced portfolio managers with more than a decade in the industry are typically expected to earn fixed salaries in the £150,000 to £200,000 range, with bonuses that can reach 150% to 200% of base pay, implying total annual compensation of up to £600,000 or more.
At the upper end of the hedge fund industry however, pay scales diverge dramatically. Multi-strategy platforms such as Citadel are reported to distribute multimillion-dollar payouts to senior members based on fund performance. In 2025, the firm paid its members an average of $21m (£16m) each.
