Photographer: Angela Weiss / AFP / Getty Images
Photographer: Angela Weiss / AFP / Getty Images
Tiger Global Management was placed first in a world classification of hedge funds and quantification plant Renaissance Technologies was eliminated, another sign that trading conditions favored human stock selectors over algorithms.
The industry raised $ 127 billion last year, with some of the largest companies dominated by human operators accumulating record profits, according to estimates released on Monday by LCH Investments, a hedge fund. Tiger Global by Chase Coleman generated $ 10.4 billion for customers, after fees and Izzy Englander Millennium Management came in second, with US $ 10.2 billion.
Renaissance, founded by billionaire mathematician Jim Simons dropped from the ranking of 20 companies after part of his public funds were lost more than 30% last year. In 2019, it ranked third on the LCH list, which focuses on managers with the highest total profit since the beginning and is designed to favor the largest and oldest hedge funds.
Read more: Hedge Fund Titans Hohn and Mandel lead $ 178 billion a year in profits
The ranking reflects the most prominent theme of a tumultuous year, with hedge funds winning or losing large sums of money as the Covid-19 pandemic ravaged the world and central banks unleashed unprecedented stimulus to curb economic carnage. The biggest of them all, Ray Dalio’s Bridgewater Associates suffered $ 12.1 billion in losses.
“When navigating the particularly volatile markets of 2020, talented individual managers with vision and flexibility performed better than scheduled machines,” said LCH President Rick Sopher in a statement.
Your company’s annual survey is just one way to examine the profitability of the industry, as it can exclude newer or smaller hedge funds that exceeded all of the top 20 on a percentage basis.
The 20 managers in the ranking supervised about 17% of global hedge fund assets and produced about 43% of the $ 1.4 trillion in profit the industry has generated since the beginning, according to the LCH.
Top 20 managers ranked by earnings in 2020
| Manager | Net earnings from the start | Earnings in 2020 | Release year |
|---|---|---|---|
| Tiger Global | 26.5 | 10.4 | 2001 |
| Millennium | 36.0 | 10.2 | 1989 |
| Lone Pine | 42.3 | 9.1 | 1996 |
| Viking | 36.6 | 7.0 | 1999 |
| Citadel | 41.8 | 6.2 | nineteen ninety |
| DE Shaw | 37.3 | 5.4 | 1988 |
| Elliott Associates | 33.3 | 5.0 | 1977 |
| TCI | 27.0 | 4.2 | 2004 |
| Egerton | 22.6 | 3.7 | 1995 |
| Brevan Howard | 22.5 | 3.0 | 2003 |
| Farallon | 29.3 | 2.9 | 1987 |
| SAC / Point72 | 25.9 | 2.5 | 1992 |
| Och-Ziff / Sculptor | 29.8 | 2.3 | 1994 |
| Appaloosa | 28.6 | 1.9 | 1993 |
| King Street Capital | 17.6 | 1.6 | 1995 |
| Baupost | 31.3 | 1.5 | 1983 |
| Paulson & Co. * | 17.8 | -1.2 | 1994 |
| Bridgewater | 46.5 | -12.1 | 1975 |
| Soros Fund Management ** | 43.9 | N / D | 1973 |
| Moore Capital *** | 18.6 | N / D | nineteen ninety |
| Top 20 managers | 615.1 | 63.5 | |
| All managers | 1,422 | 127 |
NOTE: The earnings are in billions of dollars; * Until June 30, 2020; ** Until December 31, 2017; *** Until December 31, 2019. Source: LCH Investments
– With the help of Hema Parmar