Multi-managers boost payouts – top traders earn 25% of profits
Top traders at the largest multi-manager hedge funds are now earning close to a quarter of the profits they generate, according to a Goldman Sachs report, as firms such as Citadel and Millennium continue to expand their share of the market.
The report found that managers at the highest-paying firms received payouts averaging 24.5% of profits in 2025, compared with 22% three years earlier. Competition for talent has intensified, with some traders securing total compensation packages worth more than $100 million.
Goldman’s survey of 57 hedge funds revealed that assets under management across multi-managers rose 16.1% in 2025, reaching more than $425 billion. The increase was driven by a combination of new investor inflows and stronger performance, following a period of outflows in 2024. Across the wider hedge fund industry, assets grew by just 4.2% over the same period.
Goldman’s survey of 57 hedge funds revealed that assets under management across multi-managers rose 16.1% in 2025, reaching more than $425 billion. The increase was driven by a combination of new investor inflows and stronger performance, following a period of outflows in 2024. Across the wider hedge fund industry, assets grew by just 4.2% over the same period.
According to data from Goldman Sachs Prime Brokerage, multi-managers have seen consistent asset growth since 2018, with a sharp rebound in 2025 after a slower year in 2024. Net investor flows also returned to positive territory during the first half of the year.
The report attributes rising pay levels to the fee model used by large multi-manager funds. Unlike traditional hedge funds that charge a fixed management and performance fee, multi-managers pass many of their operating costs directly to investors. This approach allows firms to spend heavily on trader pay, technology, and infrastructure while maintaining profitability. Expenses such as bonuses and portfolio costs are billed to investors rather than deducted from fund profits.
Goldman noted that portfolio managers at top multi-manager firms are handling much larger allocations than in previous years. Traders in the highest-capitalized quartile now oversee portfolios of up to $1 billion, compared with $563 million in 2022.
After a muted 2024, the report highlights that multi-manager hedge funds are again drawing significant investor capital and expanding their managed assets at a faster pace than the broader industry.
The report attributes rising pay levels to the fee model used by large multi-manager funds. Unlike traditional hedge funds that charge a fixed management and performance fee, multi-managers pass many of their operating costs directly to investors. This approach allows firms to spend heavily on trader pay, technology, and infrastructure while maintaining profitability. Expenses such as bonuses and portfolio costs are billed to investors rather than deducted from fund profits.
Goldman noted that portfolio managers at top multi-manager firms are handling much larger allocations than in previous years. Traders in the highest-capitalized quartile now oversee portfolios of up to $1 billion, compared with $563 million in 2022.
After a muted 2024, the report highlights that multi-manager hedge funds are again drawing significant investor capital and expanding their managed assets at a faster pace than the broader industry.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
Recommended