2021 was yet another extremely profitable year for the elite of hedge funds, with combined earnings of approximately $27 billion.
Jim Simons has regained control.
The 83-year-old owner of quant expert Renaissance Technologies is at the top of Institutional Investor's Rich List, the prestigious list of the highest-paid hedge fund managers, for the fifth time in seven years.
Simons retook the crown after earning $3.4 billion in 2021, superseding last year’s leader, Israel “Izzy” Englander. The creator of Millennium Management, who earned "just" $3.1 billion in 2021, was forced to accept second place.
The cumulative earnings of the top 25 hedge fund managers in 2017 totaled $26.64 billion, which is the second-highest sum in the Rich List's history, behind only 2020's record-breaking haul.
The First Team of the Rich List collectively earned more than $58 billion over the previous two years.
In order to be eligible for the main list this year, one needed to have achieved $260 million. (In the upcoming weeks, the Second Team of top incomes who missed the top 25 will be released.)
Eight managers earned at least $1 billion last year, with Philippe Laffont of Coatue Management earning a median salary of $800 million despite his hedge fund's underperformance of 6% in 2021.
Only two individuals are eligible to join the Rich List for the very first time: Richard Mashaal of Senvest Management, who had the best performance on the Rich List with a better than 85% return, and Karthik Sarma of SRS Investment Management, who profited from a sizable holding in Avis Budget Group because its stock increased by more over five times.
See who made the top ten below, or visit this page to view the whole Rich List.
1.Renaissance Technologies James Simons
Simons is the richest member of the Rich List and the only hedge fund manager to have qualified over the course of the ranking's first 21 years. For the seventh time in the last seven years, the math prodigy comes in first place this year. The Medallion Fund, which is only accessible to insiders, was once more the 83-year-top old's earner. It increased by 48% the previous year. Simons' three public funds, on the other hand, saw returns between 10.5 and 20.5 after incurring significant losses in 2020. After experiencing withdrawals of roughly $15 billion since late 2020, Renaissance presently oversees about $60 billion.
2. Englander Millennium Management, Israel (Izzy)
After dominating the poll the previous year, Wall Street veteran Englander, 52 years old, is now in second position. There's no reason to cry: His multi-strategy fund Millennium USA increased by 13.6 percent (Millennium International performs about in line), ranking it in the centre of the field for that strategy. The 33-year-old company's $53 billion in assets are currently managed by 278 strategy teams using four main strategies: relative-value basic equity, equity arbitrage, fixed-income techniques, and quantitative methods. The firm's trading staff increased by 17 percent last year as well. By year's end, Millennium had acquired $13.7 billion for a class with a longer lockup period and returned $15 billion to investors in shares that can be redeemed throughout the year.
3. Citadel of Kenneth Griffin
Griffin outperformed his multi-strategy competitors in 2017 with a gain of 26.26 percent, the third year in a row that Citadel outperformed its 31-year annualised return of more over 19 percent. Equities, commodities, worldwide fixed-income and macro, credit, and quantitative all were beneficial thing strategies for the Wellington fund. After the long-short fund had significant losses in beginning 2021, Citadel, which oversees around $46 billion, invested $2 billion in Melvin Capital Management the previous year. Since then, the company has redeemed a sizable portion of that investment. Griffin is a major Republican fundraiser, but he declared late last year that he wouldn't back another Donald Trump campaign.
4. Hohn, Christopher
Fund Management TCI
The London-based activist's fund increased by 23.3 percent last year, marking its sixth year of double-digit growth in the last seven. Consistency is the key to their success. As per London-based LCH Investments, TCI made gains for investors of $9.5 billion in 2021. Currently, TCI's fund is in charge of $44 billion, while the company is in charge of $55 billion. Among just 13 U.S. long term investors, six accounts for nearly 80% of the U.S. stock portfolio, such as current activist target Canadian Pacific Railway. Hohn manages a concentrated, large worldwide portfolio of stocks. 20% of the fund's portfolio was made up of European infrastructure companies that were not traded in the United States.
5. David Tepper Management of Appaloosas
Tepper, whose hedge fund was upwards in the mid-teens the year before, is currently more well-known as the owner of the Carolina Panthers professional football team than as the creator of Appaloosa. The majority of the firm's about $13 billion belongs to Tepper, who employs an eclectic multi-strategic method because the majority of clients' wealth was returned many years ago. He was ambivalent about the market in late October due to worries about rising interest rates. Tepper said, "I don't consider there's any strong asset class right presently. I dislike stocks. I dislike bonds. I'm not a fan of junk bonds.
6. Point72 Asset Management Steven Cohen
Cohen, who owns baseball's New York Mets, is the other professional sports tycoon on The Rich List. Cohen's multi-sector manager posted a moderate 9.2 percent gain in 2021. But because of his significant personal investment in the company, he is still among the highest earners in 2021. Melvin Capital received a $750 million investment from Point72 and Citadel last year after Melvin suffered significant losses in the first quarter of 2021. Point72 gained notoriety for joining the fast growing group of Wall Streeters and hedge funds that relocated to or established offices in Florida. However, Warsaw, Poland, is home to the majority of the company's IT personnel.
$1 billion D1 Capital Partners
Due to his bold wagers on small businesses, The Tiger Grandcub is among the top ten. D1 virtually tripled the amount of private investments it made the year before, earning at least 73 in total. In 2021, it reported gains of 26.72 percent and 16.1 percent for its share classes that spend half of their money in private investments. The share class that excludes private enterprises, on the other hand, had a 7.9% decline. However, give Sundheim, a former CIO of Viking Global Investors, and lot of credit for making a significant comeback: One of many hedge funds affected by the consumer assault on widely shorted equities, D1 was down 20% in January 2021.
8.The Third Point of Daniel Loeb
The activist Loeb appears to have recently curbed his biting remarks—at least in public—but his aptitude for stock selection hasn't. Even while his Third Point Offshore fund lost 5.1 percent in the fourth quarter of the previous year, it nevertheless increased 22.9 percent overall. Equities contributed 21 percent of Third Point's gross gains in 2021, which were 31 percent; its lengthy bets contributed 32.1 percent. Several formerly unpublicized investments in Upstart Holdings, SentinelOne, and Rivian Automotive, as well as the internet lending marketplace Upstart Holdings, gave Loeb significant gains over the entire year.
9.Ray Dalio, Bridgewater Associates
The last-minute saving by Pure Alpha II, the computer-driven macro giant's index, increased 7.9 percent in 2021 after increasing 7.6 percent in the final few months. Bridgewater was short U.S. and U.K. fixed-income securities in December while long commodities and stocks. Dalio was able to stay in the top ten earners on the Rich List due to his significant capital investment in the company and the fees produced by Bridgewater's around $150 billion in capital. Bridgewater has generated $52.2 billion in returns for its investors since its founding in 1975, greater than any other company, as per LCH Investments.
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