Wed, Jan 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

AR magazine reveals 25 top-earning hedge fund managers of 2011

Friday, March 30, 2012
Opalesque Industry Update – The global economy may still be in recovery mode, but the hedge fund industry’s top 25 managers are doing just fine. They took home a combined $14.4 billion in 2011, according to AR magazine’s annual Rich List survey of the world’s top-earning hedge fund managers. The average pay for the top 25 was $576 million, according to the ranking, which appears in the April issue of AR.

The richest managers were not immune to market volatility, however. Last year’s total compensation for the 25 top earners fell nearly 35 percent from more than $22 billion in 2010, and disappointing hedge fund performance played a large role in the steep decline. The HedgeFund Intelligence Global Composite Index lost 2.01 percent last year.

“Hedge fund managers are paid high fees to deliver positive absolute returns, regardless of the direction of the markets,” says Michael Peltz, editor of both AR and Institutional Investor magazines. “In 2011, the majority of managers failed to do that.”

Several managers bucked that trend, led by Raymond Dalio, the founder of Westport, Connecticut–based Bridgewater Associates. Dalio is the top hedge fund moneymaker for 2011, with earnings of nearly $4 billion. Bridgewater is now the largest hedge fund firm in the world, with $70 billion in hedge fund assets and $120 billion in total assets under management.

Corporate-raider-turned-activist-investor Carl Icahn takes second place, with a $2.5 billion payday in 2011. Though he returned capital to outside investors in the first half of 2011, his full-year gains of 34.5 percent before fees enabled him to qualify for this year’s list.

Renaissance Technologies Corp. founder James Simons, No. 3 on the list, also benefited from strong performance, ending the year with a $2.1 billion paycheck. Though Simons is retired from the East Setauket, New York firm, he still has a large percentage of his personal capital invested in Renaissance’s hedge funds, which produced big gains last year.

The top five moneymakers for 2011 were:

1. Raymond Dalio (Bridgewater Associates) $3.9 billion
2. Carl Icahn (Icahn Capital Management) $2.5 billion
3. James Simons (Renaissance Technologies Corp.) $2.1 billion
4. Kenneth Griffin (Citadel) $700 million
5. Steven Cohen (SAC Capital Advisors) $585 million

Several managers turned in tepid performances in 2011, but that didn’t stop them from qualifying for this year’s Rich List. No fewer than 11 managers made the list despite posting only single-digit gains in their funds. This is partly because these managers have much of their personal wealth tied up in their funds, but also because their firms’ assets have grown so large that income generated from management fees — typically 1 to 2 percent of a firm’s assets — became a huge profit center.

The tough markets in 2011 led to a major shakeup of the Rich List this year. The majority of last year’s winners — some 15 managers — fell off the list. The most high profile of these is Paulson & Co. founder John Paulson, who failed to make the Rich List for the first time since 2007 after some of his firm’s hedge funds generated losses of between 30 and 50 percent.

There is no shortage of fresh faces on this year’s Rich List. Eight managers on the list are newcomers, demonstrating that even in challenging markets it’s still possible to generate outsize returns. They include Bridgewater co-chief investment officers Greg Jensen and Robert Prince, and Paul Singer of Elliott Management Corp.

This year marks the 11th year of the Rich List ranking, which started in the pages of Institutional Investor magazine, before migrating to AR. To be included on this year’s list, a manager had to earn $100 million, the lowest number in four years. The full list of the 25 top hedge fund moneymakers 2011 appears in the April issue of AR and can be found on the AR website, www.absolutereturn-alpha.com.

(press release)

BG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  2. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  3. Top performing private equity firms you should invest in[more]

    Komfie Manalo, Opalesque Asia: Professor Oliver Gottschalg of Paris-based HEC Business School, also known as Ecole des Hautes Etudes Commerciales de Paris has released his annual ranking of the top performing private equity firms. The 2014 HEC-DowJones Private Equity Performance Ranking

  4. Comment - Why invest in hedge funds if they don't outperform the market?[more]

    From Forbes.com: Hedge funds have always been a bit exotic and an enigma to some, but bottom line they are supposed to produce good returns using a range of strategies including global macro, event driven and relative value (arbitrage). And, sophisticated or high-net-worth individuals (HNWIs) could

  5. Owen Li 'truly sorry' for blowing up $100m of hedge fund’s assets[more]

    From CNBC.com: A hedge fund manager told clients he is "truly sorry" for losing virtually all their money. Owen Li, the founder of Canarsie Capital in New York, said Tuesday he had lost all but $200,000 of the firm's capital—down from the roughly $100 million it ran as of late March. "I take r