Thursday, 18 December 2014
Last updated 5 hours 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|
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…