Top hedge funds earn $63.5B in 2020, highest in a decade

Marco Green
January 26, 2021

Nonetheless, Dalio is still the best hedge fund manager of all-time with net gains of $US46.5 billion since inception, according to the latest rankings from LCH Investments, which is part of the Edmond de Rothschild group.

His firm's annual survey is just one way to look at the industry's profitability, as it may exclude newer or smaller hedge funds that outperformed everyone in the top 20 on a percentage basis.

Dalio is still the all-time best-performing manager, according to LCH, which tallied the figures.

Inspite of the ideal gains in a 10 years for the prime 20, hedge resources on average returned 11.6% in 2020, in accordance to Hedge Fund Investigation facts cited by Reuters. In 2019, it placed third on LCH's list, which focuses on managers with most total profit since inception and is created to favor the largest and oldest hedge funds. Stock markets recovered rapidly from March's crash, as central banks such as the US Federal Reserve took unprecedented measures to prop up economies.

The average hedge fund returned 11.6 per cent past year, according to Hedge Fund Research data, lagging behind the S&P 500 index's 16 per cent gain. That was less than the 16% return of the S&P 500.

"We have hardly ever experienced a significant downturn, all positive decades, but we realized that there would arrive a working day", Dalio explained to Bloomberg Television in September. "We missed the pandemic heading down, and that is the actuality".

Yet Bridgewater still has the most assets under management of any hedge fund with available data, LCH's annual report said, at $101.9 billion.

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Jim Simons' Renaissance Technologies, often ranked among the world's most successful funds because of its Medallion portfolio returns, dropped out of the top 20 performers after the funds it offers to outsiders fell between 20% and 30% previous year.

"Conditions favored guy around machine, and it was notable that Renaissance Systems, a equipment-pushed manager, has dropped out of the major 20", Sopher reported. She and her analysts share their 2021 outlooks on the economy, Bitcoin, and Tesla.

Last year's biggest earners include Chase Coleman's Tiger Global, which earned $10.4 billion, Israel Englander's Millennium, which earned $10.2 billion and Steve Mandel's Lone Pine with $9.1 billion.

"Several managers in the top 20 recorded very strong gains in 2020, much of which generated from equities, especially if the manager was long growth equities such as in the technology sector, which benefitted not only from the acceleration of pre-existing business trends but also from the falling bond yields".

NOTE: Gains are in billions of dollars; *Through June 30, 2020; **Through Dec. 31, 2017; ***Through Dec. 31, 2019. Mr Andreas Halvorsen's Viking Global Investors earned US$7 billion and Mr Ken Griffin's Citadel earned US$6.2 billion, LCH data shows.

Tiger Global, Viking and Lone Pine are all spin-outs of the Tiger Management family of funds founded by Julian Robertson.

Other reports by Click Lancashire

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