Hedge fund implies alternative investment or pooled funds that use a number of strategies for earning active returns for the investors. It is aggressively managed in both local and international markets with the goal of generating highest returns on investment either in an absolute sense or within a specified market benchmark. This is because hedge funds may be low in relation to traditional stock markets or bonds allocating maximum exposure towards a diversified investment.
Hedge fund strategy is constructed by some reputed investors of the market for taking maximum advantage market opportunities. In this fund, the different investment strategy is applied and classified according to investment pattern and style. Here, you will come to know about 10 highest paid hedge fund managers who have created a revolution in the investment market of investment. Let’s have a look at them.
List of Top 10 Highest Paid Hedge Fund Managers in The World in 2017.
10. George Soros: ($300 Million)
George Soros is an eternal personality and a heavyweight investor for his Soros Fund management. His family office boasts nearly about $29 billion assets. A big change has taken place last year when Scott Bessent, who used to run the show for about four years, left and started his own key square group with around $2 billion in seed capital. After Scott Bessent, Ted Burdick has taken the charge to run the family office. Being a long time supporter of liberalism, Soros has thrown his wallet and weight behind Hilary Clinton during the election cycle, giving around $7million to her priorities of the US action super.
9. Ray Dalio: ($500 Million)
Ray Dalio is the founder of the biggest hedge firm and Bridgewater associate who recently managed $153 billion dollar. The firm has shown mixed result in 2015. It is said to be the pure hedge fund that has returned 4.7 percent of fees along with alpha market return that costs around 10.6 percent. Whereas Bridgewater $70 billion posted 7% loss which is a second annual loss in 3 years. A big chunk investment of Dalio is in All weather that involves so-called risk strategy.
8. Israel Englander: ($550 Million)
Israel Englander firmly managed millennium management and a hedge fund that allocates fund around $34 billion. The shop of Englander uses multi-management platform that firm out cash to nearly 180 teams, feeding more to those who played well and got rid of those whose performance is poor. He implements this rule in his work management and thus, he never calls for management fees from investors. This approach of Englander works really well in all hedge fund strategy in 2016, a year in which most hedge funds are allocated.
7. David Siegel: ($600 Million)
David Siegel is the co-founder of two Sigma investments. He has established a powerhouse, which is said to be one of the fastest growing hedge investment funds in today’s market. With around $32 billion assets, two Sigma has come up as data driven fund that absorbs a huge amount of information that predicts the prices of security ranging from future contracts to stocks. The firm has shown outstanding performance in 2015 where most other hedge funds have struggled.
6. John Overdeck: ($600 Million)
He is one of the highest paid hedge fund managers in 2016. He has established a quantitative trading power house that said to be one of the fastest growing hedge funds in the market. With around $32 billion of the asset, Two sigma has come up as a data-driven fund that absorbed a huge amount of information for predicting the prices of security ranging from future contracts to stocks. It is worth mentioning here that while other hedge funds have struggled in the year 2015, Two sigma has shown outstanding performance.
5. David Shaw: ($700 Million)
David Shaw is a PH.D in computer scientist from Standford and also one of the highest paid hedge fund managers who have established his own firm called D.E Shaw, and Co. used to be known for his highly advanced mathematical techniques now manages $39 billion assets. The firm has shown good performance in the year 2016 while most other firms have struggled. For example, the composite return of this firm is around 14% net fee. Shaw has established this company in the year 1988 after passing a long tenure at Morgan Stanley where he worked as a Vice President of Technology for a trading group.
4. David Tepper: ($1.2 Billion)
David Tepper, one of the highest paid hedge fund managers, has recently moved to Miami from New Jersey, which considered to be a big blow to Garden state. Tepper has successfully moved $18 billion hedge fund to Florida. This hedge fund performance of Tepper during financial crisis year has made him an investment legend. Tepper has successfully established his legacy in the year 2015, a year where most other hedge firms have faced financial loss, his investment strategy successfully ruled the market during the volatile period.
3. Steve Cohen: ($1.55 Billion)
One of the highest-paid hedge fund managers in 2016, Cohen has shown his marketing strategy flexible and dynamic to changing market conditions. His manages 72 asset managements, a family office from where he generates returns of around 15.5 % in the year 2015. It was continuously the second year when Cohen achieved maximum gains since he shut down his SAC Capital by a federal prosecutor.
2. James Simons: ($1.65 Billion)
James Simons is known as Quant King and one of the highest paid hedge fund managers in 2016. In the year 2010, he retired from his firm Renaissance Technologies, but at the age of 77, he continues to play an important role in hedge fund and earns benefit through his constantly profitable and secretive black box strategy knows as Medallion. His firm has shown a good performance and stood out in the crowd where most other firms have faced loss during the financial crisis.
1. Ken Griffin: ($7.5 Billion)
Ken Griffin’s Citadel firm performed really well in the following years where most other firms have faced a huge loss. Griffin’s highest return was traced in the year 2015 when his fund generates 14.3% return on investment. The global exquisite of hedge fund earned around 17.2 % of net fees and 16% of the net return.
So, this is the list of top-paid hedge fund managers whose investment plans have worked really well in today’s market of investment.