World’s largest hedge funds record bumper year of profits

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World’s largest hedge funds record bumper year of profits



Citadel Investment Group LLC signs hang outside their office in Chicago, Illinois, USA

Bloomberg | Getty Images

The world’s leading hedge funds made record profits last year as stock markets rebounded, a new analysis found.

The top 20 fund managers generated $67 billion in investor profits in 2023, compared to the $65 billion recorded during the pandemic rally in 2021, according to a study by LCH Investment, a fund of hedge fund , from Monday.

Overall, the fund management industry reported a profit of $218 billion after fees, according to LCH Investments estimates.

The top funds – those that have performed the best in dollar terms since their inception – accounted for about a third of annual profits last year, despite managing less than a fifth (19%) of industry assets.

The best performers included Christopher Hohn’s “TCI,” Ken Griffin’s “Citadel” and Andreas Halvorsen’s “Viking.”

Top 20 managers to 2023 profits

company Assets (billions) Net profits since inception (billions) Profit 2023 (billion) Introductory year
TCI $50 $41.3 $12.9 2004
citadel $56.8 $74 $8.1 1990
Vikings $30.5 $40.9 $6 1999
millennium $61.9 $56.1 $5.7 1989
Elliott $62.2 $47.6 $5.5 1977
DE Shaw $43.8 $56.1 $4.2 1988
Lonely pine tree $15.9 $35.6 $4.2 1996
Construction post $27.4 $37 $3.8 1983
Pershing Square $17.9 $18.8 $3.5 2004
SAC/Point72 $31 $33 $3 1992
Appaloosa $17 $35 $2.7 1993
Farallon $40.4 $35.7 $2.6 1987
And Ziff/Sculptor $28.7 $32.2 $2.3 1994
Egerton $14 $23.9 $2.3 1995
David Kempner $37 $21 $1.8 1983
King Street $9.5 $19.5 $0.9 1995
Letter Howard $35.6 $28.5 $0.4 2003
Caxton $13.4 $19.5 -$0.3 1983
Bridgewater $72.5 $55.8 -$2.6 1975
Soros N/A $43.9 N/A 1973

Source: LCH Investments

Brad Amiee, director and head of research at LCH Investments, said leading funds were boosted by the stock market’s “fantastic rebound” in 2023. However, he added that many also presented particularly clever stock-picking strategies.

“You could argue that the way to go is to keep short positions on long positions and have a concentrated position in high-quality positions,” Amiee told the Financial Times.

TCI, the top fund, recorded investor gains of $12.9 billion and ended last year up 33%, outpacing the S&P 500’s 24% gain.

Among its largest owners were alphabetCanadian National Railway, Visas and General Electric.

Citadel, which ranked second in 2023, posted a profit of $8.1 billion after bringing in a record $16 billion in 2022. With profits of $74 billion since its inception, it is the most successful hedge fund in history.

The research also found that the top 20 funds have collectively made a profit of $755.4 billion since their inception, far exceeding their total assets under management of $655.5 billion.



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2024-01-23 07:27:02

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