Top managers at hedge funds, following the exodus of investors disappointed with high fees, are about to feel the pain from an expected 34 percent reduction in their compensation.

Recruiter Odyssey Search Partners stated in a report this week following a September survey of 500 hedge fund professionals that while fund managers might experience the biggest pay reduction in the industry, professionals having 7 or more years of experience will face their total compensation decreasing by 14% on average for 2016.

The report has stated that “2016 should prove to be a belt-tightening year.”

Hedge funds charging some of the highest fees in the money-management business, are facing uprising criticism from customers over steep costs and performance that mostly has not been keeping step with stock markets since the financial crisis. The industry had its worst withdrawals in July since early 2009.

According to the report, firms encountering outflows this year are predicted to pay 37% less in bonuses than those with inflows, producing a payout closer to $288,000 (£236,340.64) compared with $394,000 (£323,320.42) for the better-performing funds.

When it comes to pay, junior analysts are an exception. Those having less than 3 years of experience expect their compensation to increase on average by 10 percent.

Those having less than three years of experience are predicted to see their compensation increase on average by same 10%.

According to the report, hedge funds are expected to recruit more people having technology or legal experience as many funds are seeking to improve data analysis and compliance.

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