Ray Dalio of Bridgewater attained $1.1bn
The world’s 25 best-paid hedge investment managers attained a combined $11.62bn last year even as the industry experienced mostly mediocre overall performance and developing critique from a few of its largest investors.
Hedge investment pay, but almost halved from a $21.5bn total in 2013 whenever surging equity areas helped a’s 25 highest earners rake in earnings roughly comparable to the gross domestic item of Jamaica.
Ken Griffin, the creator of Chicago-based Citadel hedge fund that recently hired former US Federal Reserve chairman Ben Bernanke as an adviser, arrived the top of list for 2014, using house $1.3bn, based on a yearly survey performed by Institutional Investor’s Alpha.
James Simons, the septuagenarian mathematician and signal breaker whose Renaissance Technologies has been one of the best preforming hedge funds over three years, came in at number 2 on the listing, making $1.2bn.©Bloomberg
Ken Griffin of Citadel
Ray Dalio, founder of Bridgewater, the world’s largest hedge fund by possessions, was placed third with profits of $1.1bn, additionally the outspoken activist Bill Ackman, who has been waging an aggressive struggle contrary to the United States organization Herbalife, ended up being rated fourth with a $950m pay packet.
The outsized earnings for hedge fund business’s leading figures are going to add spice to present tensions between supervisors and a small but important set of community retirement funds who possess spoken down from the industry’s high costs and lacklustre financial investment overall performance lately.
Hedge funds typically adopt a fee construction referred to as “two and 20”, or 2 % of most assets under management and 20 percent of earnings. This allows supervisors to make a large amount despite their fund’s performance in line with the amounts of assets they manage, as well as using a fifth of any investment gains they make.©Bloomberg
Bill Ackman of Pershing Square
Throughout the week-end Warren Buffett, one of several world’s best-known people, took aim at hedge fund performance and pay, pointing to a bet he previously built in 2008 against another hedge investment that an easy index tracking investment could defeat the industry’s shrewdest stock pickers.
In the yearly meeting of Mr Buffett’s Berkshire Hathaway he stated the tracker investment ended up being against the profile of funds put together by hedge fund supervisor Protégé Partners by 63.5 % to 19.6 per cent.
The typical hedge fund returned about 3 percent in 2014, 9 % in 2013, and 6 per cent in 2012, in line with the information supplier HFR. In every these years these figures underperformed the US S&P 500 index, although some in the hedge fund industry argue it really is unfair in order to make an immediate contrast involving the two.Top hedge fund managers, 2014
|Ken Griffin, Citadel||$1.3bn|
|James Simons, Renaissance Technologies||$1.2bn|
|Raymond Dalio, Bridgewater Associates||$1.1bn|
|Bill Ackman, Pershing Square||$950m|
|Israel ‘Izzy’ Englander, Millennium Control||$900m|
|Michael Platt, BlueCrest Capital||$800m|
|Larry Robbins, Glenview Capital||$570m|
|David Shaw, D.E Shaw||$530m|
|Andreas Halvorsen, Viking International Investors||$450m|
|Charles ‘Chase’ Coleman, Tiger Global||$425m|
In January, Europe’s second-largest community retirement investment axed its entire €4bn hedge fund profile after it had been kept disappointed by its price, complexity and reduced returns.
The investment, Holland’s €156bn Dutch medical workers’ pension investment PFZW, took the unusual step of straight assaulting the high pay of hedge investment managers, criticising “the large remuneration in hedge investment sector therefore the frequently minimal issue for community and environment”.
A year ago Calpers, the greatest US condition retirement investment, said it absolutely was taking out of its hedge investment investments, arguing that its $4bn portfolio was no further suitable for its financial investment aims.