Hedge funds had a pretty rough 2015. At least, they thought they did. Then 2016, better known amongst industry insiders as Obama’s last laugh, came along. Quarter-million dollar cars and $5.5 million houses going unsold in Greenwich. Preemptive obituaries. Pervasive doom, gloom and misery.
And now the final piece of evidence: Through all of the horrors of 2015, the richest hedge fund managers still did pretty well for themselves. Sure, it wasn’t 2010, when John Paulson made almost $5 billion all by himself, or 2013, when David Tepper took home $3.5 billion, or even 2012, when Tepper had to settle for 2.2 big ones. But the top 25 still managed to split just a hair under $13 billion in 2015, and the big five—Ken Griffin, Jim Simons, Ray Dalio, Tepper and Izzy Englander—each padded their nest eggs with an extra 10 figures. Last year? The 13 surviving top 25ers and the 12 paupers new to the list had to settle for just $11 billion, or just over a half Paulson 2010, combined. And just two of them added a billion to their names. And one of those—the highest-earning hedge fund manager of 2016—isn’t even a hedge fund manager anymore!
Just look at the carnage: Tepper’s payday fell so much he had to move to Florida to maintain his lifestyle. Griffin’s earning dropped so much it almost looks like he lost his divorce. And don’t even mention Paulson, because he’s not allowed anywhere near this list anymore.
The 2017 Rich List of the World’s Top-Earning Hedge Fund Managers [II Alpha]
James Simons Ranks No. 1 in Institutional Investor’s Alpha’s Rich List Ranking of the World’s Highest-Earning Hedge Fund Managers [press release]
Rough year for hedge funds: Only two managers topped $1 billion [CNBC]
Hedge Fund Managers Don’t Always Beat the Market, but They Still Make Billions [DealBook]