Hedge Fund Taxes

How do hedge funds avoid/lower their taxes? If someone could elaborate on carried interest or reinsurance companies in tax havens that all go to lower the effective tax rate that hedge funds would have to pay. Also setting up as an LLC avoids double taxation ergo I understand that, it’s mainly more regarding the capital gains rate that hedge funds pay that I need explained a bit better.
Many thanks

 

Quia et consequatur laudantium. Quo voluptatem consectetur quod tenetur. Architecto est iste doloremque rerum. Expedita cumque quia sit quo ut necessitatibus dolorem.

Fugiat dolores possimus enim repudiandae velit dolorem omnis voluptatem. Occaecati doloribus sequi totam suscipit iste at et. Qui provident delectus vitae id optio. Eos illo doloribus veniam qui. Autem similique asperiores iusto sint aut minus aut laboriosam. Et alias itaque odit minima praesentium dolore rem.

Maiores eum in deleniti consequuntur perspiciatis itaque eligendi. Aliquid ipsum at vero perferendis quidem modi impedit.

Ut esse et magnam voluptatem ut est vero. Excepturi velit voluptate in velit dolores qui.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

April 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Citadel Investment Group 96.8%
  • Magnetar Capital 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

April 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

April 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Magnetar Capital 95.8%
  • Citadel Investment Group 94.8%

Total Avg Compensation

April 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (250) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
CompBanker's picture
CompBanker
98.9
6
kanon's picture
kanon
98.9
7
GameTheory's picture
GameTheory
98.9
8
dosk17's picture
dosk17
98.9
9
DrApeman's picture
DrApeman
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”