Hedge fund professionals have seen higher compensation for the third consecutive year, with the average salary for an entry-level analyst at a mid-performing hedge fund totaling $335,000 in 2013, an industry report has found.
Portfolio managers at large hedge funds should also be grinning right now, given that average salaries have reached $2.2 million, the 2014 Glocap Hedge Fund Compensation report, released Thursday found.
The hike in compensation levels was largely the result of an increase in bonuses rather than base salary rates, the report found.
(Read More: Hedge funds hope for more mortgage juice)
"Hedge funds' bonus pools were fueled in 2013 by the combination of increased performance fees and additional management fees generated on an increase in investor capital allocations," said Anthony Keizner, head of Glocap's hedge fund practice.
"These larger bonus pools will be passed through this year as higher compensation for key staff," he added.
Entry-level analysts at large firms saw a rise in bonuses between 0 to 10 percent in 2013, while portfolio managers and other senior professionals at large firms saw bonuses ranging from a decrease of 5 percent to an increase of 20 percent.
The burgeoning pay packets are testament to the thriving global hedge fund industry which the report said had reached record levels of investor capital in 2013, with $2.51 trillion as of the end of the third quarter.
Average compensation across the industry rose between 5 and 10 percent in 2013, the report said, with portfolio managers, senior analysts and risk managers at top performing funds seeing the highest relative increases.