Wednesday, 20 August 2014
Last updated 41 min ago
Mar 1 2012 | 12:07pm ET
It paid to be a top-performing hedge fund manager in 2011—very, very well for the some of the biggest names in the industry, in fact.
Bridgewater Associates founder Ray Dalio was named the highest-paid hedge fund manager of the year by Forbes magazine's annual list of the 40 best-paid hedgies, which estimates that Dalio earned $3 billion last year. And he did earn it: Bridgewater returned about 20% in 2011, the second-worst year on record for the hedge fund industry.
Two other hedge fund managers—both now technically retired—also took home more than $1 billion last year. Renaissance Technologies founder James Simons brought in $2.1 billion even though he stepped down from day-to-day management of the firm two years ago. (His successors, Peter Brown and Robert Mercer, also made the list with a 2011 payday of $125 million. Likewise, two of Dalio's deputies at Bridgewater, Greg Jensen and Robert Prince, were among the 40 with earnings of $70 million each.) Carl Icahn, who returned all outside capital in his hedge fund last year, made $2 billion.
After the top three, there's a steep drop-off in the paycheck department. SAC Capital Advisors' Steven Cohen is fourth on the list, but made just $600 million last year, less than one-third Icahn's payday.
To come up with its list, Forbes takes into account a hedge fund manager's returns, ownership and stake in his or her own funds. The numbers are before taxes.
Two other retired or semi-retired hedge fund managers made the top 10, continuing to reap the fruits of the firms they built: D.E. Shaw's David Shaw with $580 million, and Caxton Associates' Bruce Kovner with $210 million.
One of the year's top performers, Tiger Global Management's Chase Coleman, rode that 45% return to a $500 million payday. Likewise, Citadel Investment Group founder Kenneth Griffin was paid handsomely for his bounce-back year, earning $400 million.
Brevan Howard Asset Management founder Alan Howard also earned $400 million. Centaurus Advisors' John Arnold made $360 million.
Many of the managers on the list got their by simply not losing any of the huge amount of money that clients entrusted to them. But some less-well-known figures turned the year of a career into a huge payday, including NWI Management's Hari Hariharan, whose hedge fund returned 20% in 2011 and who made $100 million for himself, and veteran Albert Freidberg of Freidberg Mercantile Group, who made $60 million as his hedge fund rose almost 41%.
Only one woman made the list, BlueCrest Capital Management's Leda Braga, who earned $50 million last year.
Forbes' Highest-Paid Hedge Fund Managers 2011
|1||Ray Dalio||Bridgewater Associates||$3 billion|
|2||James Simons||Renaissance Technologies||$2.1 billion|
|3||Carl Icahn||Icahn Associates||$2 billion|
|4||Steven Cohen||SAC Capital Advisors||$600 million|
|5||David Shaw||D.E. Shaw Group||$580 million|
|6||Chase Coleman||Tiger Global Management||$500 million|
|7||Kenneth Griffin||Citadel Investment Group||$400 million|
|7||Alan Howard||Brevan Howard Asset Management||$400 million|
|9||John Arnold||Centaurus Advisors||$360 million|
|10||Bruce Kovner||Caxton Associates||$210|
|11||Andreas Holvorsen||Viking Global Investors||$200 million|
|11||Paul Tudor Jones||Tudor Investment Corp.||$200 million|
|13||Israel Englander||Millennium Management||$190 million|
|14||Daniel Och||Och-Ziff Capital Management||$170 million|
|15||David Harding||Winton Capital Management||$150 million|
|16||Peter Brown||Renaissance Technologies||$125 million|
|16||Seth Klarman||Baupost Group||$125 million|
|16||Robert Mercer||Renaissance Technologies||$125 million|
|16||Michael Platt||BlueCrest Capital Management||$125 million|
|20||Nelson Peltz||Trian Fund Management||$110 million|
|21||Daniel Gold||QVT Financial||$100 million|
|21||Hari Hariharan||NWI Management||$100 million|
|21||Yan Huo||Capula Investment Management||$100 million|
|21||Russell Jeffrey||Providence Investment Management||$100 million|
|21||Philippe Laffont||Coatue Management||$100 million|
|21||Colm O'Shea||Comac Capital||$100 million|
|21||Paul Singer||Elliott Management||$100 million|
|28||Boaz Weinstein||Saba Capital Management||$90 million|
|28||Jaffray Woodrifft||Quantitative Investment Management||$90 million|
|30||David Einhorn||Greenlight Capital||$80 million|
|31||Greg Jensen||Bridgewater Associates||$70 million|
|31||Robert Prince||Bridgewater Associates||$70 million|
|31||Anthony Todd||Aspect Capital||$70 million|
|34||Albert Freidberg||Freidberg Mercantile Group||$60 million|
|35||Leda Braga||BlueCrest Capital Management||$50 million|
|35||John Thaler||JAT Capital||$50 million|
|37||Donald Brownstein||Structure Portfolio Management||$40 million|
|37||Robert Citrone||Discovery Capital Management||$40 million|
|37||Danny Yong||Dymon Asia Capital||$40 million|
|37||Joe Zhou||Ortus Capital Management||$40 million|
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note