Hedge Fund Managers Face Pay Cut

Many hedge funds will have trouble retaining top managers next year, thanks to terrible market performance across the board and a reward system based on that performance, The Wall Street Journal reports. To retain talent, they will have to tap into profits. Otherwise, they will have to close shop.

Hedge funds also face the prospect that many investors will redeem shares. Overall, analysts say, it’s likely that 15% of the hedge funds currently on the market won’t exist next year.