Breaking down hedge fund billions

March 25, 2009

Four of the world’s top hedge fund managers took home 10-figure paychecks last year, even as the loosely regulated industry delivered its worst returns and hundreds of firms were forced out of business.

The industry’s 25 best-paid managers collected a total of $11.6 billion, which marked the third-best year on record, according to an annual survey released by Institutional Investor’s Alpha magazine. Top on the list was James Simons, a former mathematics professor who runs hedge fund group Renaissance Technologies, with estimated earnings of 2.5 billion.

The total number, however, marks a sharp decline from the $22.5 billion that the industry’s best performers took home in 2007. Analysts had expected the overall decline after the average hedge fund lost 19 percent and its size shriveled because investors pulled out roughly $150 billion in assets.

Click here to read more of the Reuters story by Svea Herbst-Bayliss.

Rank Name Firm Name 2008 Earnings
1 James Simons Renaissance Technologies Corp. $2.5 billion
2 John Paulson Paulson & Co. $2 billion
3 John Arnold Centaurus Energy $1.5 billion
4 George Soros Soros Fund Management $1.1 billion
5 Raymond Dalio Bridgewater Associates $780 million
6 Bruce Kovner Caxton Associates $640 million
7 David Shaw D.E. Shaw & Co. $275 million
8 Stanley Druckenmiller Duquesne Capital Management $260 million
9 (tie) David Harding Winton Capital Management $250 million
9 (tie) Alan Howard Brevan Howard Asset Management $250 million
9 (tie) John Taylor Jr. FX Concepts $250 million

3 comments so far | RSS Comments RSS

ANNUAL COMPENSATION OF $2.5 BILLION! For running a fund? NOTHING was added to the economy. NO jobs were created. NO product produced. NO trade with other nations…. NOTHING OF VALUE .. just the shuffling of some paper. THIS LEVEL OF COMPENSATION REPRESENTS THE DISEASE THAT IS KILLING THE WORLDS ECONOMY. Staggering… and sickening at the same time.

Posted by A. Gast | Report as abusive

Note that there’s Bear Stearns Centaurus Energy having a similar name to Centaurus Energy at the same address in Houston, Texas.

Posted by J Gill | Report as abusive

Free enterprise at work. Compensation by % has been accepted as reward from effort. Wonder how many hospital wings were built, foundations formed from this excess. Regardless, First post is correct paper traders are what they are – a boil on capitalism that will be hard to lance.

Posted by Dean | Report as abusive

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