Tepper, Cohen Earned Most In ‘13

May 6 2014 | 3:15pm ET

SAC Capital Advisors founder Steven Cohen isn’t going out on top—but he’s close.

Cohen was the second-highest earning hedge fund manager last year, according to Institutional Investor Alpha’s annual Rich List. He took home $2.4 billion in what will be his final appearance on the ranking: This year, Cohen is ineligible, having transformed SAC into a family office called Point72 Asset Management following its guilty plea to insider-trading charges in November.

Cohen was beaten by last year’s highest-earning manager, Appaloosa Management’s David Tepper, who rode a better than 40% return to $3.5 billion in earnings, $1.3 billion more than he made last year. Tepper has been atop the Rich List in three of the past five years.

Paulson & Co.’s John Paulson was third, with $2.3 billion in earnings, followed by Renaissance Technologies’ James Simons—the only person who has made each of the 13 annual lists—who made $2.2 billion. No other hedge fund manager earned at least $1 billion on 2013, although Citadel Investment Group founder Kenneth Griffin came close at $950 million.

All told, the 25 men—and they are all men—on the Rich List made a combined $21.15 billion last year, about 50% more than the top 25 earned in 2012. Indeed, making the list required 2013 earnings of $300 million; in 2012, it took just $150 million.

Five managers dropped off the list from last year. One of them, Farallon Capital Management’s Thomas Steyer, retired at the end of 2012. Three made the list for the first time this year: Greenlight Capital’s David Einhorn, Highfields Capital Management’s Jonathon Jacobson and Trian Partners’ Nelson Peltz, who earned $375 million last year.

Among those returning to the Rich List are Discovery Capital Management’s Robert Citrone ($475 million), BlueRidge Capital’s John Griffin ($470 million), Viking Global Investors’ Andreas Halvorsen ($450 million), Lone Pine Capital’s Stephen Mandel ($450 million) and York Capital Management’s James Dinan ($360 million).

Alpha Magazine's 2013 Rich List

rank manager firm 2013 earnings
1 David Tepper Appaloosa Management $3.5 billion
2 Steven Cohen SAC Capital Advisors $2.4 billion
3 John Paulson Paulson & Co. $2.3 billion
4 James Simons Renaissance Technologies $2.2 billion
5 Kenneth Griffin Citadel Investment Group $950 million
6 Israel Englander Millennium Management $850 million
7 Leon Cooperman Omega Advisors $825 million
8 Larry Robbins Glenview Capital Management $750 million
9 Daniel Loeb Third Point $700 million
10 Ray Dalio Bridgewater Associates $600 million
10 Paul Tudor Jones Tudor Investment Corp. $600 million

In Depth

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note