The Five Highest Hedge Fund Earners for 2016

March 16, 2017 James Heinsman Hedge Fund News

In general, we all know that hedge funds are not doing well. But for the few among the hedge fund successes, those managers have a lot to be thankful for. And we do mean a lot.

The data tells us that between the high fees hedge fund managers charge and the lackluster returns, record numbers of investors are fleeing away from the alternative fund space. The $3 trillion industry saw the loss of $70 billion just last year, recorded as the largest downturn since 2009.

No need to feel bad, though. Hedge fund managers are still among the wealthiest Wall Street denizens.

The following is from Forbes list of the highest-earning hedge fund managers and traders from the past year, 2016. The list, as you can guess, shows that these men (are there any women among them, we wonder?) are still able to pay their mortgages.

The fifth highest earner last year was Kenneth Griffin, founder of Citadel. This fund ended the year in the black, with a return of about 5% net after fees. Griffin earned a cool $500 million. Begun in 1990, Citadel has an annualized net return since inception of 19%.

Forbes called Appaloosa Management’s David Tepper the “arguably the greatest hedge fund manager of his generation.” Nevertheless, his company only brought home middle digit returns. But that still did not hurt Tepper, unless you thing $750 million is simply not enough to live on.

Ranked with the third highest income, Raymond Dalio is the founder and co-chief investment officer of Bridgewater Associates. In 2016 Dalio earned an impressive $1.4 billion, yes less than the Mexican border wall will cost, but still, nothing to be ashamed of. Dalio seems to be slowing down a bit, though, announcing in March that he will no longer be managing the firm as of mid-April.

We have a tie for first place between Michael Platt, founder of BlueCrest Capital Management, and James Simmons, founder of Renaissance Technologies Corp. Both managers brought home the bacon to the tune of $1.5 billion. Forbes says about Platt that, “highly leveraged bets on interest rates paid off for Platt in 2016, as his supersized family office turned in a 50% return net of costs.”

As for Simmons, who retired from his firm in 2010 still brings in the dough via its “strong performance,” as Forbes describes Renaissance’s returns. The company’s largest fund, Renaissance Institutional Equities, “was up 21.5% net fees in 2016” according to Forbes.

David Tepper, James Simmons, Kenneth Griffin, Michael Platt, Raymond Dalio,

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