Hedge Funds Outperform In April

Those riches came during a year of tremendous market volatility that was so bad for some Wall Street investors that the billionaire manager Daniel S Loeb called it a "hedge fund killing field".

Distressed debt hedge funds posted the best returns during the month of 1.83%, as higher oil and commodity prices lent some support to the valuations of managers. Institutional Investor's Alpha magazine released its annual review of how the top managers fared past year, and the tally for the group of 25 came in at almost $13 billion, up 10 percent over 2014.

The Times reports pay has soared as the hedge fund industry itself has "ballooned in size", growing from $539 billion in 2001 to $2.9 trillion.

Because fund managers boast they can make huge sums of money with their strategies, and investors expect them to, they charge limited partners a management fee and a performance fee. The earnings results in the Institutional Investors Alpha list are skewed because they include gains on personal investments of managers, not just fees.

The only woman on Alpha's list, Leda Braga, founded Systematica Investments in January 2015 and made $60 million previous year.

Citadel's flagship Kensington and Wellington hedge funds returned 14.3 per cent over 2015. Over the past two quarters, investors pulled nearly $17 billion from hedge funds, marking the largest outflows since 2009.

With an estimated fortune of $7.5 billion, he's been climbing Forbes magazine's rich list in recent years, and is now ranked the nation's 56th richest citizen and the 157th richest person in the world. He earned $1.7 billion a year ago, as did Renaissance Technologies founder James Simons.

Among those, there are reports that Millennium earned 11.1% a year ago.

To calculate individual earnings, Alpha counts gains on individuals' capital in their funds as well as their share of the fees. Following close behind were Raymond Dalio of Bridgewater Associates, the largest hedge fund in the world with more than $160 billion in assets under management, and Appaloosa Management's David Tepper who both brought home $1.4 billion. Another frequent target of Wall Street critics, Lloyd Blankfein, the chief executive of Goldman Sachs, made $23 million in 2015.

Topping the table in joint first place was string theory expert and former code breaker James Simons from Renaissance Technologies, earning $1.7bn in 2015.


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