Paulson Earns Almost $5B In 2010, Top 25 Hedgies Take In $22B

Apr 1 2011 | 1:58pm ET

After seeing his record 2007 payday shattered by David Tepper in 2009, John Paulson has reclaimed the title of highest-paid hedge fund manager.

The Paulson & Co. chief earned a whopping $4.9 billion in 2010, according to AR magazine's annual Rich List. That topped both his own 2007 payday, $3.7 billion in a year when his hedge funds produced triple-digit returns betting against subprime mortgages, and Tepper's $4 billion payday in 2009.

Last year, the Appaloosa Management chief had to settle for fourth place, with total earnings of $2.2 billion.

"In 2001, the combined income of the top hedge fund managers was less than $5 billion—about what Paulson alone made in 2010," AR editor Michelle Celarier.

All told, the highest-paid 25 hedge managers earned $22.07 billion, more than $3 billion less than the group collectively earned in 2009. Indeed, making the top 25 list took just $210 million in earnings last year, compared to $350 million in 2009.

But the six managers who took home at least $1 billion last year—down from seven the prior year—will take it.

The second-highest-earning hedgie is Ray Dalio, head of the world's largest hedge fund, Bridgewater Associates. Dalio earned $3.1 billion; in 2009, he didn't even make $1 billion.

Retired Renaissance Technologies head James Simons earned $2.5 billion, SAC Capital Advisors' Steven Cohen $1.3 billion and ESL Investments' Eddie Lampert $1.1 billion.

The top 10 were rounded out by Carl Icahn with $900 million in earnings, down from $1.3 billion in 2009, Caxton Associates' Bruce Kovner with $640 million, George Soros with $450 million, down from $3.3 billion in 2009, and Tudor Investment Corp.'s Paul Tudor Jones with $440 million.

Other notable entrants on the Rich List included D.E. Shaw Group's David Shaw with $275 million in pay, Omega Advisors' Leon Cooperman with $240 million for his first appearance on the list since 2004, Moore Capital Management's Louis Bacon with $230 million and Third Point's Daniel Loeb with $210 million.

The list of those who dropped off the top 25 is equally notable. Centaurus Energy's John Arnold, who made $900 million in 2009, didn't rank last year, his first-ever down year. Neither did Harbinger Capital Partners' Philip Falcone, who earned $825 million in 2009. And Brevan Howard Asset Management's Alan Howard also fell from the list.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.