Hedge fund managers manage tens of millions of dollars. The truly exceptional ones manage billions!
1. Ken Griffin
Ken Griffin founded Citadel, which has performed superbly in the recent years. His sterling performance continues when his hedge funds gained positive returns of 14.3% net of fees. Citadel’s Global Equities hedge fund returned 17.2% net of fees, and its Tactical Trading fund posted a 16% net return. Griffin has been trading in the 1980s during his studies in Harvard University and founded Citadel in 1990 with approximately $4 million. The firm is currently managing $25 billion in assets.
2. James Simons
James Simons founded Renaissance, which is currently based in East Setauket, N.Y. in 1982. The fund uses computer modeling to find inefficiencies in highly liquid securities. He retired from his hedge fund firm in 2010 but continues to play an advisory role at the firm and benefits from its profitable black-box strategy – Medallion. Renaissance Institutional Equities increased 17% net of fees and Renaissance Institutional Diversified Alpha was up 16% net free. The hedge fund is worths at an approximately $29 billion.
3. Ray Dalio
Ray Dalio founded Bridgewater Associates, which is recently managing $154 billion. In 2015, it’s Pure Alpha hedge fund returned 4.7% net fee and Pure Alpha Major Markets returned 10.6%. However, it’s $70 billion All Weather Fund released a 7% loss, its second conservative annual loss in 3 years. A majority of Ray Dalio’s net worth is invested in All Weather, which employs “risk-parity” strategy. Ray Dalio has been working to institutionalize Bridgewater’s in order to reduce his stake in the firm and allow his heir, Jenson to lead the company.
4. Israel Englander
Israel Englander founded Millennium Management, a hedge fund firm that is managing $34 billion. He started his firm in 1989 with $35 million in capital. Israel Englander uses a multi-manager platform to pay off more cash to reward those who perform well and lay off those who failed to perform to the expectation. He does not collect management fee from investors, as he aligns compensation with investor’s returns. This methodology benefits the company, as the hedge fund made 12.5% net fees in 2015.
5. Danny Yong
Danny Yong founded Dymon Asia in 2008 with US$ 113 million in AUM. Today, Dymon Asia has US$ 4.5 billion in assets. Danny Yong graduated from Nanyang Technology University and started his career at JP Morgan before moving to Goldman Sachs and Citadel. Danny Yong did exceptionally well in 2011 returning 20.11% when other macro funds on the list were returning between -30.07% to 9.69%. In fact, Dymon’s only calendar year loss was in 2008 when it was founded. Temasek Holdings invested $500 million in Dymon Asia in May 2014.