A fund manager has reportedly made millions in compensation from Fidelity Investments' best performing assets such as Alibaba, according to an article by Fortune.
While fund managers who belong to the top of Fidelity Investments normally receive payouts higher than what CEOs at S&P companies get, Will Danoff has received millions from his investments in F-Prime, the article said.
Danoff has managed Fidelity's flagship Contrafund for 25 years and now oversees more than $100 billion in assets as a solo portfolio manager.
Top portfolio managers like Danoff belong to Fidelity's elite who get additional compensation from investments made by F-Prime Capital Partners, a proprietary venture fund managed by Impresa Management on behalf of the family of Fidelity chief executive Abigail Johnson and other company insiders.
Sources familiar with Fidelity's compensation structure said that fund managers also get millions of dollars in addition to their compensation through F-Prime's best performing investments such as Alibaba.
F-Prime however declined to divulge the number of people entitles to its biggest payouts as Fidelity is not required to disclose details of those who receive F-Prime distributions.
Reuters found that Danoff received millions from F-Prime investments, which invested early in Alibaba's 2014 IPO and distributed shares in the Chinese company to investors. Danoff was among the group, sources said.
According to an annual report filed by Danoff's private charitable foundation, Danoff received 46,154 Alibaba shares worth about $3,432, or 7 cents apiece. The stock report showed that F-Prime made an investment in Alibaba about 15 years before the company went public.
Danoff's Alibaba shares reached about $4 million when he received them. Alibaba went public at $68 a share in its first public offering.
According to disclosure of the Danoff's family foundation, Danoff donated the Alibaba stock as part of his $5 million gift to Harvard University, his alma mater.
The family's charitable foundation filings with the U.S. Internal Revenue Service showed that its assets surged to about 70 million in recent years. It also showed that Danoff gave $31.1 million to charity, with $12 million in ContraFund shares he owned.