Richest Hedge Fund Managers: Hedge fund losses in the first half of 2022 were 10%. The threshold for being one of the Top 20 Richest Hedge Fund Managers in the World rose from $2.1 billion in 2021 to almost $4 billion this year. 16 people on the 2021 list became wealthier, while four remained the same.
The youngest hedge fund manager on The Forbes list is the group’s highest gainer for the second year in a row in 2021. According to Forbes, the net worth of Tiger Global Management’s 46-year-old founder, Chase Coleman, increased from $6.9 billion in 2020 to about $10.3 billion in 2022, although it has since decreased to $8.5 billion.
His company currently manages $65 billion, and since its founding in 2001, it has generated annualized net returns of over 20% on average.
Israel Englander of Millennium Management is one of the biggest gainers, with a net worth of $11.3 billion, up $4.3 billion from a year ago. The founder of Bridgewater Associates, the largest hedge fund in the world, Ray Dalio, had a $3.1 billion increase in wealth, bringing it to $19.1 billion.
What is Hedge Fund?
In an effort to increase performance, a hedge fund is a pooled investment that trades in relatively liquid assets and has access to a variety of more sophisticated trading, portfolio-building, and risk management strategies, such as short selling, leverage, and derivatives.
Who is a Hedge fund Manager?
Hedge fund managers are financial organizations or people who hire qualified analysts and portfolio managers to create hedge funds.
Hedge fund managers frequently receive above-average pay from investors in the form of a two-and-twenty fee structure.
The mandate of a hedge fund portfolio is often determined by the manager’s expertise in a particular investment approach.
Below is a table showing the ranking order of the world’s richest hedge fund managers, their net worth, companies, and nationalities.
Top 10 Richest Hedge Fund Managers in the World and Their Net Worth
|1||Ken Griffin||$31 billion||Citadel||American|
|2||James Simons||$28.1 billion||Renaissance Technologies||American|
|3||Ray Dalio||$19.1 billion||Bridgewater Associates||American|
|4||David Tepper||$18.5 billion||Appaloosa Management L.P.||American|
|5||Carl Icahn||$17.9 billion||Icahn Enterprises L.P.||American|
|6||Steve Cohen||$17.4 billion||Point72 Asset Management||American|
|7||Israel Englander||$11.3 billion||Millennium Management||American|
|8||Chase Coleman||$8.5 billion||Tiger Global Management||American|
|9||David Shaw||$7.9 billion||D. E. Shaw & Co||American|
|10||George Soros||$6.7 billion||George Soros HonFBA||American|
1. Ken Griffin-$31 billion
Ken Griffin is the CEO of Citadel, a hedge fund company based in Chicago that he created in 1990 and currently manages around $39 billion in assets.
The company’s flagship Wellington fund reportedly gained close to 10% year-to-date through August, after returning 24% in 2020. One of the largest market-making companies on Wall Street, Citadel Securities, was founded by Griffin.
In 1987, while still a Harvard undergraduate, he started trading to test the waters, according to Forbes. In 1990, three years after he started Citadel, Griffin. He was among the highest-paid hedge fund managers in 2019, according to Forbes, and was ranked as one of the most powerful people in 2018.
A record-breaking condominium in Manhattan with views of Central Park cost Griffin $238 million in 2019. Additionally, he has a pricey art collection and two private jets. As of this writing, he ranks among the top ten richest financiers in the world.
2. James Simons-$28.1 billion
Jim Simons established Long Island-based Renaissance Technologies in 1982, making him the fourth consecutive year’s richest hedge fund manager in the country.
His prestigious quantitative trading company, which currently oversees over $50 billion in assets, is well-known for its Medallion Fund, a $10 billion closed-loop investment option available only to Renaissance founders and staff. Simons is still employed by the company and is still receiving benefits from its funds even though he formally retired in 2010.
With a net worth of $28.1 billion, mathematician Jame Simons, sometimes known as Jim Simeon, is second on this list of the Richest Hedge Fund Managers.
James Simons, sometimes known as “Quant King,” broke codes for the US Department of Defense during the Vietnam War before introducing a math-based method that completely changed the hedge fund sector. He was let go, nevertheless, after vocally criticizing the war in the media. Before leaving Stony Brook University in 1978 to establish a quantitative trading company, he served as the math department chair there for ten years.
3. Ray Dalio-$19.1 billion
Ray Dalio is the head of Bridgewater Associates, the biggest hedge fund in the world, which manages a portfolio of over $160 billion worth of foreign investments.
Dalio has recently focused on providing advice and financial assistance despite having a sizable fortune and a prominent position in his industry. By signing the Giving Pledge, he promised to donate the vast bulk of his wealth to charity.
He also shared his highly sought-after “investment secrets” in a 30-minute YouTube video, albeit in an unorthodox manner for a hedge funder.
His 123-page self-published manual on his leadership and money management principles is considered something of a bible in the investment sector.
Dalio has always adopted a novel approach to management, keeping every decision he and his fund make completely open and apparent to personnel. And everything worked out well for him.
Despite occasionally being referred to as “cultish,” Bridgewater is one of the most sought-after locations to work in finance. In part, Dalio credits his success to his continuous self-reminders that history repeats itself and to his meticulous documentation of his mistakes.
Dalio is still chairman and co-chief investment officer of Bridgewater despite having left his position as co-CEO in 2017. Bridgewater lost $12.1 billion for investors in 2020, per LCH Investments, as a result of the global market crisis and following economic recovery.
4. David Tepper-$18.5 billion
Tepper, whose hedge fund was up in the mid-teens last year, is currently more well-known as the owner of the Carolina Panthers professional football team than as the creator of Appaloosa. The majority of the firm about $13 billion belongs to Tepper, which employs an eclectic multi-strategic method because the majority of clients’ capital was returned several years ago.
He was ambivalent about the market in late October of last year due to worries about rising interest rates. Tepper told CNBC, “I don’t think there’s any terrific asset class right now. I dislike stocks. I dislike bonds. I’m not a fan of junk bonds.
In our previous post on the Top 10 richest people in finance, David Tepper is rated ninth with an estimated net worth of $18.5 billion. Tepper founded the hedge fund Appaloosa Management in 1993; it currently oversees $15 billion.
Appaloosa disclosed in May that it had sold all of the Apple equity it had held, which had previously made up more than 7% of its portfolio. The pharmaceutical business Allergan is being urged to change by the fund as well.
5. Carl Icahn-$17.9 billion
Carl Icahn is an activist investor who has made a name for himself on Wall Street and has had a long history of changing corporate America.
Shares of Icahn Enterprises, his main investment vehicle, are marginally down in 2021. Icahn Enterprises is a massive conglomerate with investments in everything from casinos and energy to real estate and food packaging.
Icahn has increased his interests in firms like Xerox while decreasing his investments in firms like Occidental Petroleum and Herbalife so far this year.
He has invested in many well-known companies, including Viacom, Time Warner, RJR Nabisco, Herbalife, Marvel, and Philips Petroleum.
Icahn Enterprises is currently in charge of managing assets worth about $8 billion.
In August, Icahn had a change of heart on US health insurer Cigna’s acquisition of Express Scripts, a company that offers pharmaceutical subscription services.
Icahn has said he has no plans to quit bothering CEOs of public companies. Until his departure in August 2017, he was President Trump’s special advisor on regulations.
6. Steve Cohen-$17.4 billion
Point72 Asset Management is a $20 billion hedge fund that was formed and is operated by Steve Cohen. After serving a two-year supervisory suspension due to allegations of insider trading against Cohen’s former company, SAC Funds, the firm resumed managing outside capital in 2018. The $2.4 billion deal to buy the New York Mets baseball team was completed by Cohen in October 2020.
Cohen, who owns baseball’s New York Mets, is the only professional sports tycoon on The Rich List. Cohen’s multi-sector manager achieved a modest 9.2 percent gain in 2021. But because of his significant personal investment in the company, he is still among the richest hedge fund managers in the world.
Melvin Capital received a $750 million investment from Point72 and Citadel last year after Melvin suffered significant losses in the first quarter of 2021.
Point72 gained notoriety for joining the rapidly expanding group of Wall Streeters and hedge funds that relocated to or established offices in Florida. However, Warsaw, Poland, is home to the majority of the company’s IT personnel.
7. Israel Englander-$11.3 billion
After dominating the standings the previous year, renowned Wall Street trader Englander, 53, now occupies a sixth place on the list of the richest hedge fund managers in the world. There is no reason to cry: His multi-strategy fund, Millennium USA, saw a gain of 13.6 percent (Millennium International performs about in line), putting it in the center of the pack for that strategy.
Currently, 278 strategy teams working across four main strategies—relative-value fundamental equity, equity arbitrage, fixed-income strategies, and quantitative strategies—manage the 33-year-old company’s $53 billion in assets.
Additionally increasing by 17 percent last year was the firm’s trading staff. By the end of last year, Millennium had raised $13.7 billion for a longer-lockup class and returned $15 billion to investors in a share class that can be redeemed over the course of the year.
8. Chase Coleman-$8.5 billion
Chase Coleman is once again the youngest hedge fund manager on The RNN list of the world’s wealthiest hedge fund managers. Chase Coleman, who is 46 and this year’s largest gainer, has seen a $3.4 billion increase in his net worth.
With Tiger Global Management, he enjoyed again another outstanding year, boasting a 21% annualized net return since founding the company 20 years ago. Tiger’s Global venture funds, which currently make up $40 billion of the company’s overall $65 billion in assets, have been growing under Coleman’s leadership in recent years.
9. David Shaw-$7.9 billion
David Shaw launched his quantitative hedge fund, D.E. Shaw, in 1988. He was a former Columbia University computer science professor.
The hedge fund now oversees more than $55 billion in assets and is renowned for employing complex mathematical models and algorithms. In 2002, Shaw ceased being actively involved in the company’s daily operations, handing that responsibility over to an executive committee.
10. George Soros-$6.7 billion
George Soros, a well-known hedge fund tycoon, managed client funds from 1969 to 2011. When he shorted the British pound in 1992 for a purported $1 billion profit, he became infamously known as the man who destroyed the Bank of England.
Although he no longer oversees money for customers, he continues to make investments through his family office fund. Soros has donated $16.8 billion to philanthropy over the course of his career through his Open Society Foundations.
Currently, George Soros is now worth roughly $6.7 billion from $8.5 billion.
A list of the richest Forex traders in the world would be incomplete without including the well-known Hungarian billionaire George Soros. In 1930, George Soros was born. As a student at Singer & Friedlander in London, Soros started his trading career.
Here is a summary list of the richest hedge fund managers in the world and their net worth
- Ken Griffin-$31 billion
- James Simons-$28.1 billion
- Ray Dalio-$19.1 billion
- David Tepper-$18.5 billion
- Carl Icahn-$17.9 billion
- Steve Cohen-$17.4 billion
- Israel Englander-$11.3 billion
- Chase Coleman-$8.5 billion
- David Shaw-$7.9 billion
- George Soros-$6.7 billion