Even though Hedge funds lost money for their investors last year, the top hedge fund managers had a banner year. The 25 top-paid managers earned about $13 billion, with five men earning more than $1 billion each in 2015, according to an annual ranking by Institutional Investor’s Alpha.
These numbers might seem like a reward fit but some are actually disappointing. In 2013, the top 25 managers pulled down more than $21 billion.
Computer models played a critical role in their success, according to an annual ranking by Institutional Investor’s Alpha.
Citadel, Mr. Griffin’s firm has grown from a hedge fund which managed family and pension fund into a $25 billion firm. Now the firm’s services expanded to the securities business. Along the way, his own personal wealth is estimated at $7.5 billion by Forbes. Kensington and Wellington hedge funds, Citadel’s flagships, returned 14.3 percent over 2015.
Renaissance Technologies, the hedge fund firm started by Mr. Simons, uses computers to track and beat the stock market. This strategy had worked well. The total gain from the fund is between 15.6 percent and 16.5 percent.
Here are the top 10 best-paid managers on the list:
1. Kenneth Griffin, Citadel: $1.7 billion
1. James Simons, Renaissance Technologies: $1.7 billion
3. Raymond Dalio, Bridgewater Associates: $1.4 billion
4. David Tepper, Appaloosa Management: $1.4 billion
5. Israel (Izzy) Englander, Millennium Management: $1.15 billion
6. David Shaw, D.E. Shaw Group: $750 million
7. John Overdeck, Two Sigma: $500 million
8. David Siegel, Two Sigma: $500 million
9. O. Andreas Halvorsen, Viking Global Investors: $370 million
10. Joseph Edelman, Perceptive Advisors: $300 million
10. Christopher Hohn, TCI Fund Management: $300 million