Emolument.com drew its data from 2,214 entries globally providing an overview of fund manager pay across locations and company types.

The pay gap is widest at director level, with hedge funds paying an average of £277,000 (around $399,300), compared to £180,000 at asset management firms. This goes up to £294,000 and £237,000 respectively for managing directors.

In junior positions, bonuses make up around 20-25 per cent of annual income for both types of institutions. However, for directors and managing directors, bonuses jump to almost 50 per cent of the total compensation package at hedge funds versus 35 per cent in asset management. Associates at hedge funds take home an average of £95,000, compared to £74,000 for their asset management peers. For vice presidents, this rises to £130,000 and £112,000 respectively.

Looking at geographic differences, in the US both hedge funds and asset managers are aggressive payers when it comes to junior and middle managers, with 50 per cent larger packages than in the UK up to director level. Beyond that point, earnings level out.

“With the intensification of the regulatory environment, to many, hedge funds are perceived as a heaven with less stringent risk management processes than banks or asset management firms and where a regular adrenaline rush is still part of daily working life,” said Alice Leguay, co-founder and chief operating officer at Emolument.com.

“The attraction also lies in the possibility of earning very large bonuses at hedge funds early on compared to a constrained earning trajectory following a tiresome hierarchical process in many of the larger and more regulated institutions. Better pay and more fun. What's not to like?”