Last year, hedge funds suffered massive losses amid scandals, rising fee and market turmoil. But the investor confidence in money managers will recover soon. These are the hedge funds which made the most money in 2016.
Jim Simons is a famous billionaire who oversees his hedge fund named Renaissance Technologies. The hedge fund returned 21.5% in 2016. In this way, the fund’s total earnings for the year came in at $1.5 billion. This hedge fund manages over $71.93 billion on 13F securities.
Michael Platt founded BlueCrest Capital Management in 2000 in London. The fund is one of the pioneers in using computers to spot the best stocks to buy. In 2016, BlueCrest’s bets on interest rates paid off, and it returned a whopping 50% in the period. The hedge fund’s earnings for 2016 is $1.5 billion. Overall, BlueCrest’s portfolio has a net worth of $59 billion.
Ray Dalio is one of the richest people in America. He got fame in 2008 because he predicted the financial crisis a year earlier. Dalio’s hedge fund Bridgewater Associates earned a whopping $1.4 billion in 2016. Bridgewater Associates portfolio has a net worth of $160 billion. Speaking of Ray Dalio, you shouldn’t miss his famous video in which he explained the complete dynamics of modern economy in 30 minutes. The video has over 3 million views.
David Tepper, who according to Forbes is the greatest hedge fund manager of his generation, runs Appaloosa Management, which he founded in 1992. In 2016, Mr. Tepper earned $1.2 billion, which made his the fourth highest earning hedge fund manager in the country. David Tepper’s hedge fund earned $750 million in 2016. Mr. Tepper usually makes money by investing in distressed bonds and undervalued stocks.
Kenneth Griffin’s Citadel Investments
Kenneth C. Griffin is a Harvard graduate who founded Citadel investment in 1990 with over $4.5 million. As of the last quarter, the fund manages $149.2 billion. In 2016, the hedge fund earned $500 million. It returned about 5% net of fees. The hedge fund buys stakes in troubled companies and correct them and transform them to profitability.
Paul Singer is a 72-year old hedge fund manager who founded Elliott Management in 1977 with just $1.3 million. Mr. Singer is known as one of the toughest money managers in the US. His hedge fund is known as the ‘Vulture Fund’ as it invests in distressed securities. In 2016, Elliot Management returned 13%, and posted earnings of $400 million.
David E. Shaw
David Shaw is a computer scientist who entered the realm of investment after the power of computers in stock trading dawned upon him. His hedge fund was once called by Fortune Magazine as the most “mysterious” force in the Wall Street. His fund is a pioneer in high-speed quantitative trading. In 2016 D.E Shaw’s hedge fund earned $400 million.