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BOSTON – The 20 best performing hedge funds in the world earned $ 63.5 billion for clients in 2020, setting a record in the past 10 years during a chaotic period in which technology-driven stocks led a dramatic recovery from an induced sale by pandemic, show data from LCH Investments.
As a group, the most successful managers earned half of the $ 127 billion that all hedge funds earned last year, said LCH Investments, a returns fund firm that monitors returns and is part of the Edmond de Rothschild group.
Despite the pandemic that triggered a historic stock market liquidation in March, closed large sectors of the economy and swallowed millions of jobs, the top 20 hedge funds outperformed their 2019 returns of $ 59.3 billion. This was despite the fact that 2020 was not as profitable as the previous year for hedge funds as a whole, which saw profits drop from $ 178 billion in 2019.
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The average hedge fund returned 11.6% in 2020, according to data from Hedge Fund Research, lagging behind the 16% gain of the S&P 500 index.
“The net earnings generated by the top 20 managers for their investors, at $ 63.5 billion, were the biggest in a decade. In that sense, 2020 was the year of the hedge fund, ”said Rick Sopher, president of LCH, in a statement.
Keith Rabois, general partner of Founders Fund LLC, speaks during an interview with Bloomberg Technology television in San Francisco, California, USA, on Friday, February 22, 2019. The 20 best-performing hedge funds in the world earned $ 63.5 billion for customers in
Last year’s biggest winners include Tiger Global by Chase Coleman, which raised $ 10.4 billion, Millennium by Israel Englander, which raised $ 10.2 billion, and Lone Pine by Steve Mandel, with $ 9.1 billion . Andreas Halvorsen’s Viking Global Investors earned $ 7.0 billion and Ken Griffin’s Citadel earned $ 6.2 billion, according to LCH data.
Bridgewater Associates of Ray Dalio, founded in 1975, remained in first place since the beginning, with $ 46.5 billion won, even after a terrible 2020, during which LCH data shows that Dalio lost $ 12, 1 billion.
George Soros’ Soros Fund Management, which no longer manages money for external clients, retained the second place, followed by Mandel, Griffin and managers from DE Shaw, who completed the top five performances of all time.
In 2020, only Paulson & Co. of Dalio and John Paulson, who won billions in real estate bets during the financial crisis, lost money, the data show.
Jim Simons’ Renaissance Technologies, often ranked among the most successful funds in the world because of the returns on its Medallion portfolio, dropped out of the top 20 performances after the funds it offers to third parties fell between 20% and 30% last year.
“Conditions favored man over machine and it was remarkable that Renaissance Technologies, a machine-driven manager, came out of the top 20,” said Sopher.