Now that the fiscal figures for 2013 are now in, we’re able to collate the top earning Hedge Fund Managers from 2013. We’ll focus on the top ten earners in this list which shows just how much money is to be made in the hedge fund business.
1) George Soros – $4 billion. Under the banner of Soros Fund Management, George Soros steered his hedge fund into making a return in excess of 22% for 2013. Soros Fund Management made such an impressive result by investing in Herbalife which promotes the use of natural health care supplements. This risky venture has certainly paid off, making him the top hedge fund earner of 2013.
2) David Topper – $3.5 billion. Topper founded Appaloosa Management and under his leadership it has went from strength to strength. His salary is well deserved on the basis that over the last five years he has successfully made his hedge fund a cool return of upwards of 40% on the initial investments. To give some money back, David Topper donated $20 million to various charities, truly showing that he knows how to share his hard earned wealth.
3) Steve Cohen – $2.3 billion. Whilst his investment company, SAC Capital Advisors, has gotten themselves into hot water over insider trading, he’s still managed to excel in this trifling time by gaining a return in the region of 20% of his investments in 2013. If SAC didn’t have to pay such a large bill in fines, it would have been more than likely that he would have topped this list.
4) John Paulson – $1.9 billion. As part of his hedge company Paulson&Co., his high performance fees were a big factor in this exceptionally large profit. The hedge itself is worth $20 billion, so his rather modest salary shows that he’s more than happy with taking home ‘just’ under $2 billion in 2013.
5) Carl Icahn – $1.7 billion. Despite not being the highest earner on this list, he’s in actual fact the richest man on Wall Street. This came about with his company Icahn Capital Managment trading large stakes in Netflix, eBay and also going after Apple which in itself is a sure way to generate more money. In 2013, his hedge fund made a return of 31%.
6) James Sinclair – $1.1 billion. Despite being retired from his self funded hedge Renaissance Technologies, Mr Sinclair still makes money through undisclosed roles through his Medallion strategy. As a former code breaker in the Vietnam War, he’s well used to working the percentages to his advantage. For a retiree, earning $1.1 billion is certainly a great pension package!
7=) Ray Dalio – $900 million. Ray is the first equal manager on this list to drop under the billion dollar mark, although $900 million in earnings in one year isn’t exactly poor time spent in the office. He’s at the helm of the largest hedge fund in the world, Bridgewater Associates which currently has in the region of $150 billion in equity.
7=) Ken Griffin – $900 million. Ken is the other individual on our list to make $900 million last year. As the founder of Citadel currently has in the region of $16 billion in assets. In previous years Citadel made a return of 20% and 25% in 2011 and 2012 respectively. In 2013, it’s level of return was down slightly with it peaking at 19.25% which is still a great return for any investment.
9) Larry Robbins – $750 million. As the founder of Glenview Capital Management, Larry Robbins runs a tight ship. His returns in 2013 are in part attributed to investing in the health care system in the wake of Obamacare. With some strategic balancing of the books he was able to gain a massive return of 43% last year.
10) Leon G. Cooperman – $730 million. Two successful year in a row for his hedge fund Omega Advisors has let Leon secure the number ten spot on this list. After securing a return of 25% in 2012, he was able to improve further by securing a return of 30% in 2013. After an initial role in quality control at Xerox, Cooperman secured a position at Goldman Sachs eventually obtaining the top spot in asset management.
It’ll be interesting to see how much this list changes in 2014, and just what kind of returns the above leaders will make over the next 8 months.